Looking for a great interest rate on your savings? High-interest savings accounts can provide a good return on your investment. However, the interest rate on the CIBC eAdvantage Savings Account is lower than what most financial institutions offer.
CIBC is one of Canada’s largest banks and has more than 1,100 branches. You can bank online, over the phone, using the mobile app, and at about 4,000 ATMs. CIBC also provides the personal banking services for President’s Choice Financial.
The CIBC eAdvantage Savings Account offers an interest rate of 0.55% if your balance is more than $5,000. But the rate is 0% if your balance is less than $5,000.
|Account balance||Interest rate|
|$0 to $4,999.99||0%|
|$5,000 or more||0.55%|
TD Canada Trust and RBC Royal Bank both offer the same rate on deposits of $5,000 or more. But the rate is lower than both the BMO Bank of Montreal Savings Builder Account (which offers a rate of 1.25%) and the Scotiabank Momentum Savings Account (which has a 1.50% interest rate).
If you compare CIBC’s rate (on a deposit of $5,000 or more) to other financial institutions’ best rates, you can see there’s a big difference:
|Financial institution||Interest rate|
|Steinbach Credit Union||1.60%|
|Meridian Credit Union||1.50%|
|BMO Bank of Montreal||1.25%|
|Canadian Western Bank||1.00%|
|RBC Royal Bank||0.55%|
|TD Canada Trust||0.55%|
*currently 2.40% for new clients only for the first 182 days and 0.80% thereafter; rate for current clients is 0.80%
The CIBC eAdvantage Savings Account doesn’t have a monthly fee. There are also free online transfers to your other CIBC accounts and free account inquiries. However, you should be aware of these fees:
- $1.50 for each non-CIBC bank machine withdrawal or for each Interac e-Transfer you send
- $5 for each of the following transactions: cheques, withdrawals (including ATM), transfers (excluding online transfers to other CIBC bank accounts), pre-authorized payments, bill payments, and debit purchases
The bottom line
The interest rate on the CIBC eAdvantage Savings Account isn’t very competitive and also lower than the rate at President’s Choice Financial. To see the current rates being offered by other financial institutions, check out the best high-interest savings accounts.