The new EQ Bank Notice Savings Account is an excellent blend of all the best features of GICs, HISAs and money market funds (and cash ETFs).
If you want to earn one of the highest interest savings rates without freezing your funds for a year or more, the Notice Savings Account makes it easy.
When you open your account, choose a 10—or 30-day notice and the corresponding interest rate (3.50% or 3.65%, respectively). Your withdrawals are processed based on this timeline whenever you place a request.
How to Open the Notice Savings Account
Visit the EQ Bank website here and click the ‘open account’ button.
Choose a 10-Day Notice or 30-Day Notice. Your selection here determines your savings rate, which is either 3.50%* or 3.65%*.
Deposit funds in your account and watch it earn interest daily.
When you need to withdraw funds, place a request, and the money will be deposited into your external bank account after the notice period elapses.
During the notice period, your deposit continues to earn interest.
EQ Bank Notice Savings Account vs GIC
Unlike non-cashable GICs, which generally offer locked-in terms ranging from 3 months to 5 years, you can withdraw funds from your Notice Savings Account without penalty within 10 or 30 days of placing a withdrawal request.
This allows for more flexibility, making it easier to deposit funds you may need quickly in this account.
For example, depending on your needs, you could even consider it for your emergency savings. If an emergency arises, you can potentially cover the bill using your credit card and pay off your balance when your withdrawal clears in 10 or 30 days.
That said, unlike GICs, the interest rate on the Notice Savings Account is not guaranteed. This means it can change at any time.
Benefit of the Notice Savings Account
1) Earn high interest rates on your savings (current rates are higher than what is offered on the EQ Bank Personal Account).
2) Your deposit is eligible for CDIC insurance up to $100,000. This coverage is aggregated for your deposits in EQ Bank and Equitable Bank.
3) There is no minimum balance or monthly fee to worry about.
4) You can have one 10 Day Notice Savings Account and one 30 Day Notice Savings Account for even more flexibility and earning power.
Downsides of the EQ Bank Notice Savings Account
You could potentially earn a higher yield with some Cash HISA ETFs. However, if you pay trading fees to buy and sell these ETFs, your gains may be eroded.
Secondly, the Notice Savings Account is not available in Quebec.
