Best Savings Accounts at Scotiabank Canada
GreedyRates is proud to be the go-to authority for Canadians who want to save money and earn the best benefits possible from their credit cards, and we will continue to work hard to be Canada’s number one destination for all things credit card related.
That said, we believe our readers can apply their bargain-hunting mindset to other aspects of their financial well-being, and we plan to expand our focus to include other opportunities where Canadians can save, starting with the savings accounts offered by various Canadian banks.
Scotiabank Savings Account Canada
Canada’s third-largest bank, Scotiabank, began life in Halifax, Nova Scotia in the 19th century. It now offers a whole range of banking products to Canadians across the country, including 7 different savings accounts. Each account has its own benefits and advantages, depending on whether you’re looking for tax-free, high-interest, easy savings, or other features in your ideal savings account. Read on for our guide to the best Scotiabank savings accounts.
Scotiabank Savings Account Interest Rate
Scotiabank Savings Account
Maximum Interest Rate
|Momentum Plus||1.95%||Interest rates increase the longer you leave your money|
|Accelerator||1.15%||Interest rates increase as your balance gets higher|
|Money Master||0.20%||Link to Bank the Rest to save automatically|
|Savings Accelerator TFSA||1.15%||Enjoy high-interest savings tax free|
|Scotia Tax-Free Savings Account||0.20%||Increase your savings tax free, however you prefer|
|US Dollar Interest||0.15%||Make or receive payments in US dollars while still earning interest|
|Euro Daily Interest||0.10%||Make or receive payments in Euros while still earning interest|
Best Scotiabank Savings Account
We can’t definitely state which is the best Scotiabank savings account, because there’s no one savings account that’s ideal for every Canadian. Your tax situation, the amount you want to save, and how long you’re willing to lock your money away all make a difference to your choice of the best Scotiabank savings account for your needs. We can, however, give you the information you need to decide which Scotiabank savings account is best for you.
Scotiabank Tax Free Savings Account
Scotiabank provides two tax-free savings accounts to choose from.
Scotiabank Tax-Free Savings Account (TFSA)
The Scotiabank Tax-Free Savings Account (TFSA) is a versatile savings vehicle that can hold a variety of different types of savings—investments, savings accounts, GICs, mutual funds and more. You can put your annual tax-free savings contribution in any combination of accounts, funds, or investments. It gives you flexibility to choose your level of risk, you can withdraw funds at any time, and return them without using up your current TFSA allowance. If you use it for low-risk savings, the interest rate is only 0.2%, but you can obtain a higher rate of return if you diversify into other investments.
Scotiabank Savings Accelerator TFSA
If you’re looking for a savings-only tax-free account, the Scotia Savings Accelerator TFSA has a much higher interest rate of up to 1.15% for balances of $250,000 or more. Balances of $249,999 or less earn 1.05% interest. There’s no monthly fee, and you can make unlimited free transfers to other Scotiabank accounts using Scotia mobile banking, online banking, or via the customer contact centre. All other transactions cost $5 each time.
Scotiabank High Interest Savings Account
Scotiabank presents two high-interest savings accounts – the Momentum Plus account and the Savings Accelerator account. Both accounts have no monthly fees and unlimited free self-service transfers to other Scotiabank accounts. The difference lies in your approach to savings.
Scotiabank Momentum Plus Account
If you have a low balance or you’re happy to lock your money away for long periods of time, the Momentum Plus account is probably your best choice. You’ll earn 1.05% interest on any balance amount—there’s no minimum balance. Interest rates go up according to how long you leave your money undisturbed, with the top rate of 1.95% payable when it’s left untouched for 360 days or more.
Scotiabank Savings Accelerator Account
If you have a larger amount to save and want to keep it accessible, the Savings Accelerator could be a better option. You’ll only earn 0.5% interest on balances up to $4,999 and 1.05% up to $249,999, which is the same as the starter rate for Momentum account holders. But balances of $250,000 or more earn interest rates of 1.15% with full access. It’s worth noting that this account is available as a tax-free plan (as described above), but the Momentum Plus account is not.
Scotiabank Easy Savings Account
Scotiabank Money Master Savings Account
To be honest, the only significant advantage to the Scotiabank Money Master savings account is that it makes it easy for you to save. That’s because you need a MoneyMaster account in order to use Scotiabank’s Bank the Rest savings program.
Whenever you make a purchase with your Scotiabank debit card, Scotiabank’s Bank the Rest will automatically round up the amount to the nearest $1 or $5 (you can choose which amount). The extra amount is sent directly to your Money Master account to earn interest for you. The interest rate you’ll get is pretty low—only 0.2%—but there is no monthly fee for this account and unlimited self-service transfers to other Scotiabank accounts. That means you could use your Money Master account just to participate in the Bank the Rest program, and then transfer your Money Master balance to a high-interest savings account every month.
Scotiabank Foreign Currency Savings Accounts
Foreign currency savings accounts give you a place to accumulate foreign currency until you need to use it. Aside from serving as a depository for foreign cash, they might also come with other perks like commission-free transfers. Interest rates are typically low, but you do save money you’d otherwise lose if you transferred your balance into CAD and then back again into US dollars or Euros.
Scotia U.S. Dollar Interest Account
Scotiabank’s US Dollar interest account has a monthly fee of just US$1 per month. It’s waived for seniors or if your account balance stays above US$200. You can get bank drafts in US dollars without commission, easy online transfers between US and Canadian dollar accounts, and 2 free debit transactions per month. Additional transactions cost $1.25 each. Interest is only paid on balances above $1,000, beginning at 0.01% and rising in tiers to 0.15% on balances of $60,000 or more.
You’ll need a daily balance of €200 or above to waive the monthly fee of €1, but the Scotiabank Euro Interest Savings account account is entirely free for seniors. Interest begins at 0.01% for balances of €5,000, with the top tier of 0.10% paid on balances above €60,000. Two free teller-assisted withdrawals are included each month, with additional transactions costing €1.25 each time.
Benefits of Savings vs Chequing
They might both be bank accounts, but savings accounts and chequing accounts have very different purposes. It’s best to have both a chequing account and a savings account in order to ensure a balanced financial life.
Savings accounts exist to help you accumulate more money. You usually won’t have to pay any fees to use the account, and you can earn high rates of interest on the money you deposit. A savings account is not intended as a mechanism for taking care of regular expenses. The idea is to put money in and keep it there for as long as possible, so that it can earn maximum interest.
Chequing accounts are everyday accounts. Many chequing accounts charge monthly fees, and they provide very low interest rates—if any at all. But that’s ok, as chequing accounts are generally intended as accounts to receive a paycheck, pay bills, and make regular purchases. Most chequing accounts come with a debit card to make it easier to buy things in stores and online.
Other Scotiabank Products
Scotiabank’s financial products don’t end with savings accounts. You can select from a wide range of financial services with Scotiabank, such as 4 different chequing accounts and an array of credit cards. Scotiabank credit cards include rewards cards, cashback cards, lifestyle cards, and credit cards with low interest rates and zero fees. This makes it easy to connect up all the parts of your financial life—everyday financial services, rewards, credit cards, and savings—under the same umbrella system.