Cheque Your Savings — This Account Does Both
Insight Earning interest on chequing accounts is virtually unheard of in the banking sector. That’s why the EQ Bank Savings Plus Account is a different way to bank.
Consider a savings account that functions like a chequing account. It lets you pay bills and transfer money instantly with no transaction or account fees — and earn 2.30 percent interest.* The EQ Bank Savings Plus Account does exactly that.
EQ Bank is a subsidiary of Equitable Bank, a wholly Canadian-owned Schedule 1 bank with approximately $31 billion of assets under management, over 830 staff, and a member of CDIC. EQ Bank, its digital bank, combines the security, stability, and reliability of a traditional bank with the speed, convenience, and agility of online banking. “We’re seeking to deliver a unique value proposition to customers that hasn’t existed before,” says Mahima Poddar, Senior Vice President, Digital Banking and Strategy at Equitable Bank. “Because we are a digital bank and 100 percent branchless, we operate at a lower cost position than traditional banks and can translate the cost savings into better value for customers,” says Poddar.
EQ Bank Savings Plus Account is distinctly different
“We’ve created a product that allows customers to transact from a savings account that pays an attractive everyday interest rate. For at least the last year, that interest rate has been 2.30 percent” says Poddar. In addition to making unlimited free bill payments and e-transfers to any other Canadian bank, customers can make mobile cheque deposits and — as of recently — buy GICs at very attractive rates directly from their Savings Plus account. “It’s a really simple way to let customers take advantage of GICs without having to call a branch, talk to an advisor, or worry about the commission that the sales agent may be earning on the GIC purchase,” says Poddar.
Benefits to customers
A key benefit to customers with the EQ Bank Savings Plus Account is the ability to earn interest while their money is in a resting position — like during the gap period between getting paid and paying monthly expenses like rent, mortgage, and utility bills. “With a traditional chequing account, you are not earning anything on your balance or float, plus you’re often paying minimum fees to keep the account active,” says Poddar.
Considering the average Canadian holds anywhere between five and ten thousand dollars in their chequing account to manage their bills, 20 or 30 days of interest can add up. “And even if the money is only sitting in the account for three days, customers still earn interest because EQ Bank calculates interest daily,” says Poddar.
“With a traditional chequing account, you are not earning anything on your balance or float, plus you’re often paying minimum fees to keep the account active”
– Mahima Poddar, Equitable Bank
That helps Canadians manage their money more prudently. “Making small financial decisions like this can improve your financial position in the long term because you’re saving on all of these fees and the compound interest of 2.30 percent in a risk-free investment really adds up over time,” says Poddar.
Unlike many digital banks, EQ Bank does not offer temporary promotional rates on its Savings Plus account. “Offering an everyday rate of 2.30 percent on every dollar to each customer takes away the worry about wondering whether they should be shifting money from one account to another when the promo expires, which we don’t feel is a very good customer experience,” says Poddar.
Finally, the EQ Bank Savings Plus Account is built on a platform that’s designed for simplicity, ease of use and for people on the move 24/7. “Customers can manage their money from wherever they happen to be — on the go or at home — via their mobile app or desktop,” says Poddar.
* Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.