Perhaps you’ve seen them on TV. A gathering of super villains called Tentacle, which includes a brainy professor, an evil clown and some Lady Gaga lookalike, seems set on world domination…only to have their plans thwarted by the Meridian Good to Grow High Interest Savings Account (HISA). The ad certainly is unique, and a rather unconventional way to market a savings product.
Now, if you read between the lines, you might see Tentacle as representing the Big Five banks in Canada. For a credit union swimming in a sea of larger, more established competitors, Meridian has found a way to make itself noticed—even though your first reaction might be to change the channel. The ad campaign takes aim at the Big Five and the low interest rates they offer.
If you stay tuned, you’ll hear more about the credit union’s HISA, which features no monthly fees, no minimums and the possibility to “actually save money in Canada,” which, in this case, means an interest rate of 1.5%. As Meridian’s promotional website points out, its HISA has a much higher rate than its larger competitors, but it’s worth noting that those rates were posted as of Sept. 14, 2015.
Ratehub.ca offers the most up-to-date rates on the best high-interest savings accounts in Canada, where you’ll see that Tentacle has found a way to fight back. While Meridian’s rate is still significantly higher than RBC, TD, and CIBC, Scotiabank has matched the credit union’s rate of 1.5% with its Momentum Savings Account. That being said, the Scotiabank product has a tiered interest rate, so in order to receive the same rate as Meridian, you’ll need to keep the balance in your account above $5,000. Any balance below $5,000 receives a rate of just 0.1%.
And Meridian isn’t the only one of the little guys that’s throwing a wrench into Tentacle’s plans, either. Steinbach Credit Union, Achieva Financial, Outlook Financial, and AcceleRate Financial all offer savings accounts with interest rates ranging from 1.60% to 1.80%. So it definitely pays interest to shop around!
Right now, the best rate you’ll find might actually banish Tentacle to the Phantom Zone…but only for a six-month sentence. Tangerine currently has a special offer on its Tangerine Savings Account that would earn an interest rate of 2.40%, triple its regular rate, for the first six months. As with any special offer, there’s a catch: you have to be a new client and open your first Tangerine savings account to qualify.
So, while Meridian does have most of the big banks beat, it’s not the only super-powered HISA out there. Check out Ratehub.ca to compare the rates for the best high-interest savings accounts in Canada.
Flickr: Got Credit