EQ Bank offering 2.45% interest rate

Days after Wealthsimple announced a new spending account with a 2.4% interest rate, Toronto-based EQ Bank raised the rate on its savings account to 2.45%.

EQ is the digital platform of Equitable Bank, which considers itself a challenger to the big banks.

On Tuesday, Toronto-based Wealthsimple introduced a new account called Wealthsimple Cash, which uses a prepaid Visa card and offers 2.4% interest.

Last fall, Montreal-based Laurentian Bank introduced a new digital offering with a 3.3% high interest savings account.

An EQ release emphasized its status as a Canadian Deposit Insurance Corporation member, the Crown corporation that provides deposit insurance. (Laurentian Bank is also a member; Wealthsimple is not.)

With interest rates low in many parts of the world, investors have been looking for safe assets with yield. Fixed income ETFs, including cash alternative products, saw significant investments in 2019.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.