If you want a high-interest savings account that actually pays a high interest rate, you’ll often need to turn to a smaller financial institution. One such example is Oaken Financial.
About Oaken Financial
Oaken Financial is owned by Home Trust Company, one of the largest trust companies in Canada. You can bank online or by visiting one of the company’s two stores in Toronto or Calgary.
The Oaken Savings Account has an interest rate of 1.75%, which is the same as what’s being offered by Luminus Financial. The account isn’t a tiered account so you’ll earn that rate on a balance of $10 or $10,000.
If you compare Oaken’s rate to its competitors, the rate is lower than what the EQ Bank Savings Plus Account and the Alterna Bank High Interest eSavings Account offer. However, the rate is better than what most financial institutions offer on a balance of $5,000 or more:
|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%
There’s no monthly fee on the Oaken Savings Account and it comes with both unlimited withdrawals and transfers.
The bottom line
The Oaken Savings Account pays a fairly high interest rate of 1.75% and there’s no minimum balance required to get that rate. But some financial institutions offer better rates. You can see what they offer by checking out the best high-interest savings accounts.