Review: EQ Bank Notice Savings Account
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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.
What is the EQ Bank Notice Savings Account?
The EQ Bank (Equitable Banking) Notice Savings Account 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 3.05% 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.
What is the difference between the Notice Savings Account and the Personal Account?
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.
How do I open an account?
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.
How do I withdraw money from my savings account?
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!
What is the interest rate on the EQ Bank Notice Savings Account?
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.
- With 10 days’ notice, you get a rate of 3.00%.
- With 30 days’ notice, you get a rate of 3.05%.
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. In such cases, you will be informed by e-mail.
Advantages and disadvantages of the EQ Bank Notice Savings Account
Here are the main advantages and disadvantages of the EQ Bank Notice Savings Account:
Advantages:
- High, non-promotional interest rate
- No monthly fees
- No minimum balance required
- CDIC eligibility for all deposits
- Free and unlimited withdrawals
Disadvantages:
- Notice period
- Not offered in Quebec
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.
My Review of the EQ Bank Notice Savings Account
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. For example, 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.
Bottom Line
In short, the EQ Bank Notice Savings Account is a savings product that allows you to earn a higher rate than with other banks. In exchange for a notice period, you receive a higher interest rate, allowing you to maximize 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 discover other bank account offers, visit our best account offers page.
