Review: Tangerine Savings Account

Craig Sebastiano
by Craig Sebastiano January 2, 2018 / 2 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 1% on its savings account (there’s also a TFSA version of the account, which offers the same rate of 1%). 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 cash bonus. If you’re a new customer and open a Tangerine chequing and savings account together, you’ll earn 2.4% bonus interest on the savings for six months, plus a $100 bonus in your chequing account. If you open a standalone savings account, RSP savings account or tax-free savings account, you’ll earn 1.9% in interest for six months, and 1% interest after that.

Tangerine Savings Account

Open an account
  • 2.40% interest rate for the first 6 months if you are a new client (1% interest rate thereafter)
  • No fees or service charges
  • No minimum balance required

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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  • Craig Richardson

    I opened an account hoping to use it to save some cash for project and vacations. I had a couple of deposits from e-transfers and they decided to hold it for what they called variance of information. Initially they held my whole account ($3000). Once I called and had to talk to 3 people they released the money previous to the e-transfers. The transfers were for $200 each and inside of Canada. Money transferred to me from friends for other legitimate banking institutions. No red flags should have come up. Their security department was increasingly useless and could give me no real reason for this hold and even after a month they still hold it. In fact they even told me they didn’t have to be nice to me since they are not customer service. I would never recommend this company to hold on to my dirty dishes never mind money. This new era of full digital banks like Tangerine has more authority and can do as they please with your money. if they feel like a random audit then your money is frozen until they determine they will let it go. At this stage the bank (i use the term loosely) is telling they can keep my money till the end of May 2018 then they have to release it. If your thinking about banking with them run away screaming as they will exploit your money for there ends but they are not really there for you.

  • John

    I open an account when it was still ING to save money for vacations and other such future purchases, and when it switched I figured I’d stay. I have deposited over 10000.00 since, the interest amount I’ve received is so low, that I don’t even notice it. I recently received a pre-approved cash back credit card application, I own my own home, have over 300,000.00 in equity, an annul salary of 65000.00, with a credit score of over 750, and get declined, I don’t use credit cards, I have them as a convenience and pay them off immediately, this caused an inquiry on my credit bureau, which is now lower, and when I call to find out what happened, I get the run around. So now that I have seen what they don’t do for me, I am moving all my money, and will be closing all my accounts with them. I’m just a small fish in the huge pool, but I hope this review will stop clients from dealing with this type of bank.