In Canada, there are several savings options, each with its own advantages and disadvantages. In most cases, the most important criteria are the interest rate and the availability of funds. This is why EQ Bank (Equitable Bank) has created a savings product that combines these two criteria: the EQ Bank Notice Savings Account. In this article, we explain how this savings account works and how you can maximize your savings.
Unfortunately, the EQ Bank Notice Savings Account is not currently available in Quebec.
The EQ Bank Notice Savings Account (Equitable Bank) is a savings account that offers one of the best rates in Canada. Its operation is relatively simple. In exchange for 10 or 30 days’ notice of withdrawals, you get a higher rate than with other banks.
This savings account has no monthly fees or minimum balance requirements, and your money is protected by CDIC up to $100,000.
Currently, you can earn up to 3.65% interest, depending on the notice period you choose. The notice period is the number of days your funds will be held in your EQ Bank Notice Savings Account following a withdrawal request.
The Notice Savings Account and the Personal Account are two different savings accounts offered by EQ Bank (Equitable Bank) for which you earn interest on your account balance. In both cases, you can withdraw your money. However, the main difference is that you must give notice before making a withdrawal with the Notice Savings Account. In fact, it’s this notice requirement that enables you to obtain a higher interest rate.
The process of opening an EQ Bank Notice Savings Account is very simple. First, you must register to become an EQ Bank customer. Then you choose the notice period that best suits your needs from the two available options (10 or 30 days). Once your account is open, you can make deposits and start earning interest. If required, you can request withdrawals (free and unlimited) for which your funds will be available after the notice period.
You can make unlimited free withdrawals from your EQ Bank Notice Savings Account by transferring funds to a Personal Account, Joint Account or linked external account. As soon as your notice period is over, your money will be available in the selected account.
Interesting fact: When you request a withdrawal, the funds remain in your EQ Bank Notice Savings Account until the end of the notice period. Meanwhile, you continue to earn interest!
The interest rate you earn on your savings depends on the notice you give for your withdrawals. You have two options: 10 or 30 days’ notice. The earlier you give notice, the higher your rate.
Interest is calculated daily on the closing balance of your account and paid monthly. Unlike other banks, this is not a promotional rate. But, like most savings accounts, the interest rate can be changed without notice. If applicable, you will be notified by email.
Here are the main advantages and disadvantages of the EQ Bank Notice Savings Account:
Advantages:
Disadvantages:
Although the notice period is the main disadvantage of this savings account, it is precisely this notice requirement that enables you to obtain a higher interest rate. What’s more, you choose the notice period to suit your needs.
The EQ Bank Notice Savings Account is a very interesting and unique savings product. You could say it’s a savings product halfway between a traditional savings account and a GIC. Sure, you have a notice period (chosen according to your needs), but your funds are not locked in for a long time, unlike a GIC Savings Account.
The 10- or 30-day notice period allows you to obtain a better interest rate to earn more interest on your savings each month. What’s more, this advance notice allows you to avoid making spontaneous withdrawals for consumer spending. In case of need, such as an emergency or unexpected purchase, there are other ways to cover this expense. In particular, with a low-interest credit card.
If you prefer, you can deposit your short-term savings in a EQ Bank Personal Account (without notice). Then deposit your medium- and long-term savings in an EQ Bank Notice Savings Account (10 or 30 days’ notice). In either case, your deposits are eligible for CDIC protection.
In my Review, it’s one of the best savings accounts available in Canada.
In short, the EQ Bank Notice Savings Account is a savings product that allows you to obtain a higher rate than with other banks. In exchange for a notice period, you get a higher interest rate, maximizing your savings. This is a savings account with no monthly fees and no minimum balance. Your deposits are protected by CDIC and your withdrawals are free and unlimited.
To find out about other bank account offers, visit our best bank account offers page.
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