Review: Tangerine Savings Account

Craig Sebastiano
by Craig Sebastiano August 12, 2016 / No Comments

When choosing a high-interest savings account, you’re probably looking for one with no fees or service charges, no minimum balance, and a rate that’s higher than most of the Big Five banks. The Tangerine Savings Account offers all that and more.

About Tangerine

Tangerine, which was formerly known as ING Direct and purchased by Scotiabank in 2012, is one of the leading online banks in Canada. The bank has a few Tangerine Cafés and pop-up locations in Toronto, Vancouver, Montreal, and Calgary. It doesn’t operate any branches like traditional banks do. You can bank online, using the Tangerine app, or over the phone.

Rates and bonuses

Tangerine currently offers an interest rate of 0.80% on its savings account (there’s also a TFSA version of the account, which offers the same rate of 0.80%). While that’s lower than what some of its competitors (EQ Bank, Alterna Bank, and Oaken Financial) offer, it’s higher than some of the big banks (TD Canada Trust, RBC Royal Bank, and CIBC). But it’s lower than the BMO Bank of Montreal Savings Builder Account, which has an interest rate of 1.25%. And the Scotiabank Momentum Savings Account offers a higher rate than Tangerine’s account but only if you deposit more than $5,000. If you deposit less than $5,000, the interest rate is just 0.1%.

New Tangerine clients can get a teaser rate and sign-up bonuses. You’ll earn 2.4% interest for the first six months as well as $50 in bonuses. When you deposit at least $100 by Sept. 6, you’ll get a $25 cash bonus when you enter the code More25 (called an Orange Key) when you sign up. If you set up an automatic savings plan (ASP) of $100 or more per month by Sept. 6 and you keep the ASP going for six consecutive months, you’ll also get another $25 bonus.

Fees

The great thing about Tangerine’s savings account is there aren’t any fees or service charges. Although some financial institutions charge for a fee for each transaction or internal transfer, Tangerine doesn’t. There also aren’t any fees if you want to move money to another one of your bank accounts, even if it’s not with Tangerine.

The bottom line

Tangerine has a great teaser rate and excellent sign-up bonuses if you’re a new client. And there are also no fees and no minimum balance required to get the best interest rate. But there are other financial institutions that offer better rates, which you can find by comparing the best high-interest savings accounts.

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