The head office of the National Bank on April 21, 2017, in Montreal.Ryan Remiorz/The Canadian Press
Earning 4.1 per cent interest on a no-risk savings account is a big win at any time, but more so when you can access your money for bill payments, e-transfers and ATM withdrawals at no cost.
The newly revamped Motive Savvy Savings account offers all of this, but for how long? Motive Financial is the online banking arm of Canadian Western Bank, which is being acquired by National Bank of Canada.
This deal was announced more than a month ago. Just recently, Motive sent an e-mail about the Savvy Savings account headlined: “Great news.” Enhancements include unlimited transactions at no cost, up from two per month, and free Interac e-transfers. More than two transactions per month used to cost $5 each, while e-transfers cost $1 apiece. Another improvement is no-cost withdrawals outside the Exchange network that includes Motive’s parent bank as a member.
If you can get away without writing cheques – in other words, if you’re under age 40 and don’t have Fred Flintstone as a landlord – then the Savvy Savings account could work as your main transactional account. Consider it a rival to similar accounts from EQ Bank, Koho, Neo Financial and Wealthsimple.
Unmentioned in the Motive e-mail was a small logistical detail – you need a debit card to get the full benefit of the expanded utility for the Savvy Savings account. I’ve strictly been an online/mobile client of Motive, so I had to call about a card. I waited on hold for about 0.5 seconds and was able to quickly make the necessary arrangements.
I’m not sure what Motive’s long-term future looks like under National Bank ownership, but I’m happy to collect 4.1 per cent interest for as long as possible with free bill payments, e-transfers and ATM withdrawals.
A final note: Following the Bank of Canada’s rate cut this week, lower rates from Motive and others could come any time. The best-paying high interest savings accounts didn’t budge after the last rate cut. Let’s see what happens next week.
Subscribe to Carrick on Money
Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.
Rob’s personal finance reading list
A list of the five G7 countries with the most problematic debt loads – France, the United States, Italy, the U.K. and Japan. My Globe colleague Tony Keller did a nice of explaining why Canada is in a better position than these countries on debt and deficits.
The reward of saving a bigger home down payment
A look at how saving a larger down payment will lower your mortgage payments in cities across the country. Note that in hot markets, prices can rise a lot while you stay on the sidelines saving a bigger down payment.
The cities that rule for renters
Not one of Canada’s largest cities made this list of best all-around locations for renters. Atlantic Canada and Quebec dominate.
A writer describes the existential dread he feels when buying groceries. I get that. It’s hard not to lose your appetite in a grocery store these days.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Ask Rob
Q: I have an American Express Centurion card – is it worth it and how does it stack up against other premium cards?
A: Here’s a thorough rundown of premium class of credit cards for big spenders and high net worth individuals. There’s a prestige aspect to the appeal of these cards as much as perks and rewards.
Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
Thoughts on how to decide whether to pay down debt with your extra cash, or invest.
In the social sphere
Social Media: Thoughts for people renewing a mortgage this year with higher payments.
Watch: What are you spending money on without realizing it?
Money-Free Zone: Lost in the Supermarket – grocery store angst as interpreted by The Clash.
More PF from The Globe
– From Madrid to Paris, last-minute bookings could yield cheap flights this summer
– The latest interest rate cut means it’s time to stop hating on variable-rate mortgages
– Housing affordability is in the trash can, but you can buy a first home at age 45 and still do OK
– Why you should let your kid make spending mistakes
– How long will it take Pete, 29, and Penny, 28, to save for a house while living with her parents?
