EQ Bank Notice Savings Account Overview - A New High Interest Account?

[@stephandden]

Any questions about the new EQ Bank Notice Savings Account? Ask away!

[@yashpatel1460]

can i add beneficiary to this account>?

[@stephandden]

@@yashpatel1460 Good question! To our understanding, in Canada you typically can't add a beneficiary to non-registered accounts (registered accounts include TFSAs, RRSPs, FHSAs, etc). One option is to open a joint account, instead. Right now, EQ Bank doesn't offer a Joint Notice Savings Account option, but they might add this feature in the future! We'll also look into this further, and get back to you if there's anything else to add to this 😊

[@rutudave4171]

I want to open a new EQ account and am looking for a referral code since it benefits both. The one in your old videos is not working for me. Can I get a new one?

[@AjinkyaMaldikar]

ground breaking product. GICs need to up their game!

[@SaranyaMano]

You two are amazing! I really appreciate your advice regarding emergency fund and it not being the best option for NSA, at least not fully. I was going to make the mistake moving it there, but your sensible and unbiased financial advice saved me. Even with promotions on, I know I can trust you :)

[@stephandden]

Thank you so much - we appreciate it! 😊

[@TeeWatchesYT]

Thanks for the info! Opened a personal account when you guys mentioned it in a previous video, and haven’t been disappointed. Now opened an NSA 😊

[@stephandden]

Of course! We're happy to hear that you haven't been disappointed, too 😊

[@JPaplinskie]

Great video, as always! One comment re: emergency funds. My thinking is leave one month of my emergency fund outside of the 30-day notice account and the remainder (~5 months) inside it. That way I would have immediate access to a portion of the funds and know I can access the rest within a credit card billing cycle should I need above and beyond that amount.

[@stephandden]

Thank you so much! We like that idea - splitting your emergency fund allows you to take advantage of the competitive interest rate, while still leaving some of your money accessible for urgent emergencies 😊

[@claudiaross239]

I keep a one month 'float' in a savings account at the same institution as my everyday chequing. This way if a bill is slightly higher (shouldn't happen as I have all regular bills on equal billing auto debit) there is a buffer. The six month emergency fund is at a seperate online institution.

[@yobuddy2920]

I’m looking into this for an emergency fund because of the high interest. 1- in case of job loss, there’s already a 1 week waiting period between payday and your actual working pay period. So there should be very little interruption in cash flow 2- if your car breaks down, put it on your credit card while you wait for your funds…

[@astridsalazar123]

I was wondering the same thing. Specially 10 days doesn’t seem like a long wait

[@stephandden]

That's an option if you're comfortable with that - we personally would leave some funds that would be accessible within a quicker time period, but it's up to you!

[@jamesherchel5827]

This account is technically better than a GIC because you wouldn’t have to wait until the end of your GIC term(ex: 1yr, 3yr, 5yr) to get your interest payment. You will get paid every month.

[@stephandden]

That is a pro for the Notice Savings Account 😊

[@jamesstuart3346]

True, but the Notice interest rate is not fixed and will slide downward with the BOC rate. GIC is fixed for the term and immune to rate cuts

[@mariak6976]

Thanks for the video really interesting! Is the cdic coverage of 100k spread for all accounts in wealth simple? So If someone has TFSA and fhsa would those contributions count towards this total or are notice savings account separate?

[@stephandden]

Good question! No, CDIC coverage is account specific - so, you have $100,000 of coverage for eligible deposits in your TFSA, $100,000 of coverage for eligible deposits in your FHSA, $100,000 of coverage for eligible deposits held in one name (ie. your chequing or savings accounts), etc. Keep in mind that this is also per financial institution (that are CDIC members). 😊

[@RiserHealth]

Love your content! Suggestion for best Budgeting App!? (now that Mint is no longer). I switched to Pocket Guard, and really like it. However, it unfortunately does not link with EQ Bank or Motive Financial Bank. Appreciate any suggestions! 🇨🇦

[@niloofarzarif7225]

Can we have a notice savings account in our tax sheltered accounts such as TFSA or FHSA? I think it'll be a great option to hold in FHSA.

[@stephandden]

No, a Notice Savings Account operates similar to a traditional savings account, or a high interest savings account. As it's an account, not an investment, you can't hold it within another account. You can put money into a Notice Savings Account, but you can't purchase investments inside of it. 😊

[@hornedlobster]

Perfect for saving for a home!

[@stephandden]

It's definitely an option for that!

[@8randomprettysecret8]

If only Canada were more affordable….appreciate you sharing this. Keep up the good work!

[@stephandden]

Thank you! 😊

[@GodsArmy00]

If they had higher interest like 6 or 7 I’d be all for it…the 4.5/5 isn’t enough for me to move since it’s offered similarly elsewhere

[@michaelssali]

Yo Den, now that y'all have done the Bank videos for the Canadiens (where Steph is from) go to 🇰🇪 Kenya and do Bank videos about the African continent. Pleeeeeease!

[@jamesstuart3346]

Remember that unlike GICs the interest rate is not fixed. As the BOC rate slides downward so will the Notice rate. A year from now your GIC can still be earning 4.70% where your Notice could be much lower

[@stephandden]

Yes, once you've bought a GIC, the rate is set for a fixed period of time. Keep in mind that your reason for using a Notice Savings Account is likely different than your reason for buying a GIC, as money you keep in a NSA is money you'd like to have more easily accessible 😊

[@ybc8495]

can they change the Notice Saving Account Rate at any time? even affect the money already in the NSA account?

[@brookybrookz2255]

Hey I have a random question, if you had to suggest your top 5 ETF’s to invest in for long term so like 25 years plus, What would they be? I live in Canada too.

[@iamkidTV]

Switched over all my accounts to this savings account to capitalize on that interest rate - just to get an email today saying that EQ Bank is lowering the interest rates effective September. Can you guys post an update about what that means for us? I can’t find information on how much it’s lowering.

[@stephandden]

The new rates are currently 4.00% for a 10-day NSA, and 4.25% for a 30-day NSA 😊

[@sdmugabe]

Just opened the 30 day notice one like a week ago

[@stephandden]

Good timing! 😊

[@financialresuscitationwith1409]

another great video! just curious, what do you do if you need to deposit a large amount of cash with your EQ account?

[@stephandden]

Thank you so much! The maximum combined balance you can have across your EQ Bank Notice Savings Account, USD Account, and Personal Account is $200k CAD (or $500k for Joint Accounts). You can't deposit a larger number than that. Is that what you were asking? 😊

[@Foltzky]

This is so helpful! I was confused when I saw the email from EQ, so thank you for the clear explanation. How much would you say should be easily "cashable" from an emergency fund? I feel like for the most part, you could use your credit card for any unexpected expenses and then cash out the account to pay for it. I obviously wouldn't put all my eggs in one basket, but do you have a recommended $ amount to keep in cash? Would $5000 in cash in an easily accessible account and the remainder in the notice account be fine?

[@stephandden]

We're so glad that you found it helpful! Good question - the exact amount is up to you, and the type(s) of unexpected expenses you feel could come up (for example, you may want to have enough money to cover at least one months worth of necessary expenses if you were to lose your job, or you may just want a small cushion to cover an urgent unexpected expense). In our opinion, the minimum amount that you should have in accessible / cashable savings is $1,000 - but again, you may want to have more depending on your personal situation. 😊

[@rutudave-f7n]

Hey Steph and Dan, it been 3 years since I've moved to Canada and your video's have been very useful. I literally have the accounts in the same bank as you. Anyway i recently came across your budgeting video and now that mint is no longer available i was wondering if you could suggest something.

[@stephandden]

We're so happy to hear that! Good question - we haven't found any apps that are as good as Mint was (at least any free ones!), so we personally use our budget template, instead. It's free to download if you want to use it as well - stephandden.com/free-budget-template/ 😊 We've also heard people say that they love using YNAB (You Need A Budget), but keep in mind that you have to pay for that one!

[@rutudave-f7n]

​@@stephandden I already use the template; it is so convenient and useful-thank you for that. I was just looking for something where I wouldn’t have to log in expenses manually, but I guess I’ll wait like everyone else since YNAB is 18-something CAD per month seems too high, but I guess its free for students (if anyone is reading). Anyway, thanks for the response!

[@vicster8178]

You mentioned that the interest is paid monthly can you give an example for those of us new to high interest accounts? For example if I have a 30 day Notice account and I deposit $20, 000 CAD, after the first month does EQ deposit the $850 interest into that Notice account? Then then next month the amount earning interest is $20850? So compounding? Thanks in advance.

[@AndroidAccountant]

This would be a great place to hold my down payment for condo right? No idea when I will buy but I wouldn't need to funds urgently. 10-30 days would be more than enough time.

[@stephandden]

Yes, it's definitely an option for down payment funds! As you mentioned, you'd likely have 10-30 days notice before you'd need to access the funds, and your money is not as risk of going down in value / is CDIC insured with a competitive interest rate 😊

[@dzeners]

Hi! new to canada and been following your videos for a while now. as a newcomer, most big banks give chequing+saving+credit card as part of their package with first year fees for the former mostly waived off. Do you still suggest to opt for digital banks like simplii financial over the big banks?

[@stephandden]

Hey! That’s awesome 😊 here’s the thing though - with a digital bank, there are no fees to be waived. Like you said, the big banks will waive them for a year and then charge you moving forward - at which point you’re less likely to move your money and business elsewhere. It’s really up to you, but a bank like Simplii (for example) has also made a push to cater to newcomers as well.

[@Conundrum191]

Might look into this once my current promo period with another bank ends. To confirm then, although you need to give 30 days (or 10 days) notice, interest still gets built daily, and paid out into the account at the end of each calendar month correct? Also I assume if you put in a withdrawal for 30 days, you'd still keep making interest on that money until it is pulled from the account and not the date you gave notice (in other words, you don't lose a month's worth of interest)?

[@joemarchant8963]

Hi Guys, I already have a decent amount saved with EQ as a tax free. would you recommend moving funds to this new notice savings account ? i mean to earn additional interest as tax free is 3% currently. are there any pros vs cons ? thx :)

[@michellegreen6932]

Can you have a notice saving account within your TFSA?

[@drennz]

Wondering the same!

[@stephandden]

No, you can't, as a Notice Savings Account and a Tax Free Savings Account (TFSA) are both accounts - you can't have one account inside of another one 😊

[@alexandermcisaac]

Is it like a tfsa, and it's tax-free interest?

[@MsNameGoesHere]

It’s not a tax-advantaged account. So not tax-free interest.

[@stephandden]

No, the earnings aren't tax-free - you'll receive a T5 tax slip for the interest earned (available for download no later than February 28th of the current calendar year) that you can use while filing your taxes 😊

[@tonylourenco4393]

I would still prefet having wealthsimples cash account at the new 4.5%(recently dropped due to interest rate cut)

[@stephandden]

Do you have direct deposits set up? 😊

[@hornedlobster]

Is it possible to open up a TSFA Notice Savings account? Expecting a home purchase in 2-3 years. It would be nice if the interest was non-taxable!

[@MsNameGoesHere]

Can’t open in a tfsa. Keep in mind the interest can change, it’s not locked in! They will send you an email if the interest changes tho

[@stephandden]

Good question! No, you can't open one inside of a TFSA - they are two separate account types. 😊

[@MRfuzzjr101]

Is the interest still calculated during the 10/30 days after a notice?

[@r2koool]

Yup

[@stephandden]

Good question! Yes, the money you request to withdraw after the notice period stats in your Notice Savings Account until the notice period ends, so you earn interest on the money that will be withdrawn all the way up until it's actually transferred. 😊

[@jeetshah6554]

I have some questions. Is this interest rate changed after the recent bank of Canada announcement?I am just worried that what will happen if they cut the interest rate suddenly? Also, I have heard that 5% holding savings is taxable, so please tell me how its still worth it?

[@julsh9776]

The interest can change anytime and yes this is taxable.

[@jeetshah6554]

@@julsh9776 So, if its taxable, is it still a good idea to open this account?

[@stephandden]

Good question - the interest rate is subject to change (like most saving accounts). If EQ Bank does change the interest rate at any time, they'll notify you with an email. 😊 In general, when the BoC overnight rate goes down, interest rates for savings accounts, etc. go down over time, as well, which is normal (although it's not fun to see in the moment!).

[@stephandden]

Interest earned is taxable, yes - unless your money is in a TFSA (or another tax-free savings vehicle), you will be taxed. The good news is that, even if the interest earned is taxable, you're still earning more money than you would without earning any interest in the first place. So, for money that you need to have saved (for a specific purpose), keeping those funds in a high interest savings account - or a notice savings account - is optimal 😊

[@jackuzzi5251]

Would you place more than the 100,000 CDIC insured amount into any non big 5 bank? For example 200,000 into EQ or CWB or Home Trust etc etc?

[@stephandden]

Ideally you won't surpass the CDIC insured amount regardless of the type of bank or financial institution - reminder that it's $100,000 per category, per member financial institution 😊

[@hermes8258]

You do not mention one very important point - what does EQ Notice account charge to withdraw your money after term is complete?

[@stephandden]

There is no fee for withdrawing your money, and there is no set term - your money can remain in the account indefinitely, until you choose to withdraw it 😊

[@sidftw]

will the interest rates stay put on Notice savings account, now that BOC has dropped their rates to 4.5%??

[@caliorbustarika3310]

Probably not.

[@freshfreshfreshfresh]

If you want a guaranteed rate, you need to buy a GIC. Can't have your cake and eat it too.

[@emmyjr1231]

Do y'all actually use an EQ Bank Notice account or is this just a sponsorship thing?

[@jackuzzi5251]

Would I be able to withdraw any amount with 30 days notice whether monthly interest earned or the entire balance? If the 30 day 5% rate is lowered can I withdraw all my money without 30 days notice?

[@stephandden]

Yes, you can withdraw either the entire balance or a set amount from your account with 10 or 30 days notice, and you can make unlimited withdrawals. 😊 From our understanding, the money that you request to withdraw after the notice period will stay in your Notice Savings Account until the notice period ends, so you'll continue to earn interest on any funds set for withdrawal until they're transferred - if interest rates change, you'll receive an email letting you know. It sounds like you'd still have to give notice (10 or 30 days) regardless of a rate change (aka you wouldn't be able to withdraw all of your money with no notice).

[@jackuzzi5251]

@@stephandden Thankyou

[@SamZedder]

It’s a good option to park extra money short term.

[@stephandden]

Agreed! 😊

[@PaoloImbag]

They're reducing the interest rate starting next month.

[@sajidabhimji4340]

Can it be in usd or just cad

[@stephandden]

It's a CAD account right now! EQ Bank does offer US Dollar accounts, though - here's the link - www.eqbank.ca/personal-banking/savings/usd 😊

[@louisheidi4682]

Wealthsimple gives you 4% interest and 1% cash back how is this better? Thanks

[@theviceinvirtue]

WS just announced 2 weeks ago that's changed as of this month for less than $100k invested with them. If you're a premium or generation client with WS then you wouldn't bother with EQ

[@stephandden]

You can see the current EQ Bank Notice Savings Account rates on their website 😊

[@ryantsui2802]

Surprised EQ Bank is offering such a low interest rate for this. Situationally can be good, like the christmas gifts but most people will only have money they don't plan on touching for years in a notice account and the rate doesn't beat GICs or Wealthsimple cash's account rate.

[@stephandden]

Keep in mind that one advantage of this account vs GICs is that you can access your funds at any time (with a set notice period), whereas GICs are locked in - you'd likely (depending on the situation, of course) be using a Notice Savings Account and GICs for different purposes. 😊 We'll see what happens with interest rates over the months, as the BoC overnight rate goes down - Wealthsimple Cash's account rate was just reduced over the past few days (although it is still competitive / they have different tiers). Thanks for your comment!

[@lunam.9640]

Not available in Quebec 😭💔 Why is it always us?😩

[@stephandden]

We feel you! The goods news is that EQ Bank Personal Accounts became available in Quebec last year, so we hope that the Notice Savings Account will be in the future, as well. 😊

[@appmania2180]

Wealthsimple just dropped my interest rate to 4% 😢

[@tonylourenco4393]

4.5 if you have direct deposit setup

[@frana9507]

I just opened mine to put my tax money and make it grow before paying government on tax month.

[@stephandden]

That’s great! 👏🏿👏🏻

[@TylerHanrattyy]

There rate is going down in Sept

[@stephandden]

The new rates are currently 4.00% for a 10-day NSA, and 4.25% for a 30-day NSA 😊

[@RajKumar-hx8oz]

Like 381😊

[@RowdyChocolateOfficial]

FIRST!

[@stephandden]

🙏🏿👏🏻

[@ybc8495]

so this is a paid ad.

[@OGCanadaCards]

Wondering if you guys use Neo or Simplii. Better or similar HISA rates as EQ and Neo is introducing a new cashback Cc

[@astridsalazar123]

Does EQ have a “bucket” sort of option? I like to keep it organized. I just moved my money to WS and now they announce the drop🥲 not sure if it’s worth moving it again. Do you guys think this is temporary or that it might happen to other banks too?

[@stephandden]

Good question - yes, you can open up to five Personal Accounts (you'd have your main account, and then sub accounts - you can give each of your accounts different 'nicknames' to keep them organized). Note that you can only have two Notice Savings Accounts (one 10 day account and one 30 day account, or just one or the other if you'd prefer). Re: interest rates dropping - this typically happens when the Bank of Canada drops the overnight rate. We'll likely see this happen with other banks and financial platforms, too, but we'll have to keep an eye out over the coming weeks and months. 😊

[@astridsalazar123]

@@stephandden Good to know!! Thanks for answering!