Canadian Tire is more than just a large retail chain. Its financial services arm, Canadian Tire Bank offers a high-interest savings account, credit cards, TFSAs, and Guaranteed Investment Certificates (GICs).
Canadians who are looking to earn a solid return on their savings account will find that options are limited.
You can either stay with your traditional bank and earn ‘peanuts’ (e.g., 0.01% to 0.35%), or choose an online HISA that pays up to 1.25%.
This Canadian Tire Bank Savings account review covers its features, benefits, downsides, alternatives, and other financial products offered by the bank.
Who is Canadian Tire Bank?
Canadian Tire Bank is owned by Canadian Tire Corporation, Ltd. It was formerly known as Canadian Tire Financial Services and was founded in 1961.
It has two additional credit cards that work well for earning gas and cash back rewards. They are:
- Gas Advantage Mastercard
- Cash Advantage Mastercard
Canadian Tire Bank’s less popular products are its:
- High Interest Savings Account (HISA)
- Guaranteed Investment Certificates (GIC), and
- Tax-Free Savings Account
Canadian Tire Bank High Interest Savings Account
With a savings interest rate of 1.25%, this HISA is one of the best you will find in Canada as of today.
Its features include:
- No monthly account fees
- No minimum balance or lock-in period
- Access to customer support from 8am to 9pm ET (Mon-Fri) and 8am to 6pm ET (Saturday)
- 24/7 online banking
- CDIC insurance
Related: Best Savings Accounts in Canada.
Canadian Tire Bank TFSA
A Tax-Free Savings Account (TFSA) allows you to earn tax-free returns on your deposits. For 2021, the TFSA annual limit is $6,000.
A Canadian Tire TFSA offers these benefits:
- 1.25% high interest rate
- No monthly fees
- No minimum balance requirement or lock-in period
- 24/7 online banking
The bank also has GIC investments you can hold in a registered or non-registered investment account.
Canadian Tire Bank GICs
A Guaranteed Investment Certificate (GIC) provides a guaranteed return on your money over a specific period of time.
Canadian Tire Bank offers GICs with terms ranging from 1-5 years.
The minimum investment is $1,000 and current rates are:
- 1 year GIC: 0.50%
- 2 year GIC: 0.75%
- 3 year GIC: 0.85%
- 4 year GIC: 0.95%
- 5 year GIC: 2.14%
Canadian Tire Bank Fees
The savings products offered by the Canadian Tire Bank have no monthly maintenance fees. That said, the following service fees may apply depending on the types of transactions you conduct:
- Canadian Drafts: $5
- Wire transfers to financial institutions other than your linked account: $20
- Wire transfers to banks located outside Canada: $30
- Non-Sufficient Funds (NSF): $30
- Overdraft: $5
- Stop payments: $10 – $20
- TFSA transfer to another bank: $50
- Inactive accounts: $20 (after 2 years) or $30 (after 5 years and 9 years)
Related: RBC High Interest Saving Accounts.
Canadian Tire Bank HISA
In order to open a Canadian Tire High Interest Savings Account, you must be at least 12 years old and be a resident of Canada (except Quebec).
The application process for HISAs can be completed online or you can complete the paper form and mail it to: Canadian Tire Bank, P.O.Box 3000, Welland, Ontario, L3B 5S5.
You can also contact customer service at 1-866-681-2837 for assistance.
You will need your Social Insurance Number (SIN) and a cheque payable to you from an external bank account owned by you.
When this cheque clears, it links your Canadian Tire savings account with your external chequing account, and you can set up an automatic savings plan.
This also makes it possible to withdraw money from your savings without paying a fee.
Related: Canada’s Best Banks in 2021.
Canadian Tire HISA Pros and Cons
If you are searching for a great rate that grows your savings, this HISA has one of the highest interest rates in Canada.
Your deposits are eligible for insurance coverage by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per depositor, per insured category.
The HISA supports automatic savings plans and you can conduct online transactions 24/7 via online banking.
If you prefer in-person banking or conduct a lot of typical transactions, this account is not for you. There are no physical branches you can walk into. At best, you can call their phone service to speak to customer support.
Unlike EQ Bank’s Savings Plus Account, this Canadian Tire HISA does not offer chequing account capabilities which means you can’t deposit cheques or send Interac e-Transfers to friends and family.
Also, the website looks outdated, and they do not have a dedicated mobile banking app.
Lastly, this HISA or TFSA is not available to residents of Quebec.
Canadian Tire Bank HISA Vs. EQ Bank Savings Plus Account
One of my top choices for high interest savings in Canada is EQ Bank.
EQ Bank also offers:
- Unlimited free pre-authorized debits and bill payments
- Unlimited free Interac e-Transfers and electronic fund transfers
- Free mobile cheque deposits
- Access to cheap international money transfers
EQ Bank also provides GICs for both registered and non-registered accounts with terms ranging from 3 months to 10 years.
The GIC rates for EQ Bank as of July 27, 2021, are:
- 3 month: 1.30%
- 1 year: 1.30%
- 2 year: 1.35%
- 3 year: 1.65%
- 4 year: 1.95%
- 5year: 2.10%
|HISA Accounts||Canadian Tire Bank HISA||EQ Bank Savings Plus Account|
|TFSA HISA rate||1.25%||1.25%|
|Free transactions||Transfers to an external personal account||Unlimited free debits and bill payments|
|Free Interac e-Transfers||N/A||Yes (unlimited)|
|Other features||TFSA, GICs, joint accounts||Mobile cheque deposits, GICs, TFSA, RSP, joint accounts, international money transfers|
Canadian Tire’s financial services arm has been around since 1961. It is a CDIC member which means your money is safe up to a limit if the bank becomes insolvent. While it is not accredited by the Better Business Bureau (BBB), it holds an A+ rating on the platform.
While the best savings interest rates are always changing, the best rates are often offered by digital banks like Canadian Tire Bank, EQ Bank, and Motive Financial.