Several banks in Canada lure customers with attractive but temporary promotional interest rates for new chequing and savings accounts. A headline rate can be tempting, but before you open a new account, there are important questions to consider so you know whether the short-term boost is genuinely worthwhile.
Should you switch bank accounts for a promo offer?
Not every Canadian likes promotional rates. A recent EQ Bank survey found that 57% of Canadians prefer banks that reward all customers with higher rates for loyalty or engagement, while 25% favour banks offering the same rate to everyone. Only 5% prefer exclusive promotions that apply to a limited set of customers. Still, an unusually high advertised rate can be persuasive. Before you move your money, understand the common trade-offs: promos often require specific actions or balances to qualify, and the rate usually falls back to a standard, lower figure after the promotional period ends. Below are the key questions to ask before switching.
1. What is the interest rate after the promotion ends?
When a promotional period expires, the account typically reverts to the bank’s regular interest rate. Read the fine print to find that post-promo rate. Most standard chequing and savings accounts offer little to no interest, so a high introductory rate can quickly become unimpressive once it ends.
2. How long does the promotional rate last?
Promotional rates are usually short-lived, often covering only the first few months after account opening. If you plan to deposit a significant sum, you might earn a one-time gain, but consider whether you’ll keep the account once the rate drops. Also check how easily the account can be closed—some banks require an in-branch visit rather than allowing closure online or by phone, which could add friction if you decide to switch again.
3. What conditions must you meet to qualify?
Promotional rates often come with eligibility rules: you may need to be a new customer, bring new funds, make a minimum deposit, or set up recurring direct deposits. After the promotional period, some accounts require a minimum balance to avoid monthly fees. Terms vary by institution, so read the account T&Cs carefully and contact customer service if anything is unclear.
4. Is the interest rate tiered?
Some banks pay higher rates only on larger balances, while smaller balances earn less. Confirm whether the advertised rate applies to your balance bracket and whether tiers or balance thresholds affect the rate you receive.
5. What fees will you pay?
Everyday banking fees—monthly account charges, transaction fees, e-transfer fees or ATM fees—can offset gains from a promotional rate. Factor in any fees you might incur before deciding if the short-term rate is worthwhile.
EQ Bank Notice Savings Account
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- Monthly fee: $0
- Interest rates: 2.60% for 10-day notice, 2.75% for 30-day notice. Read full details on the EQ Bank website.
- Minimum balance: n/a
- Eligible for CDIC coverage: Yes
High rates that last: EQ Bank’s high-interest accounts
If you prefer predictable, long-term rates rather than short promotions, EQ Bank markets itself as an option with sustained high interest. It offers several accounts without temporary teaser rates or tiered structures, and many of its accounts charge no monthly fees, require no minimum balances and avoid branch visits. Below is a concise overview of the main EQ Bank accounts mentioned.
Research by Equitable Bank compared base savings rates from Canada’s major banks, Tangerine, Simplii Financial and the EQ Bank Notice Savings Account at 3.00% per annum. That comparison used public rates available as of December 17, 2024, excluding promotions and premiums. Interest is calculated daily on the total closing balance and paid monthly. Most savings accounts allow immediate access to funds, whereas the EQ Bank Notice Savings Account at 3.00% requires 30 days’ advance notice for withdrawals.
EQ Bank Personal Account
The EQ Bank Personal Account functions like a chequing account but also earns interest. The base interest rate is 1.25%, and you can increase that to 3.50% by setting up and maintaining qualifying recurring direct deposits of at least $2,000 per month. There are no monthly fees, no minimum balance requirements and unlimited transactions.
The account can be paired with the EQ Bank Card, which reimburses ATM fees in Canada, charges no foreign transaction fees on purchases in other currencies, and earns 0.5% cash back on purchases. Interest and cash back are credited monthly—interest to the linked Personal Account and cash back to the Card balance. See the EQ Bank Card Agreement for full terms.
EQ Bank Joint Account
The EQ Bank Joint Account offers the same high interest and fee-free everyday banking for up to three people. It’s useful for couples, roommates or anyone who wants a shared account to manage joint expenses or savings goals.
EQ Bank Notice Savings Account
The Notice Savings Account pays higher interest in exchange for advance notice before withdrawals. With a 10-day notice option you earn 2.85%, and with a 30-day notice option you earn 3.00%. There are no fees, no minimum deposit or balance requirements, and you can make unlimited withdrawals—as long as you provide the required notice. Interest continues to accrue during the withdrawal notice period.
EQ Bank US Dollar Account
For customers who need a U.S. dollar account, EQ Bank’s US Dollar Account offers competitive exchange rates, no monthly fees and a stated 3.00% interest rate. Foreign currency transactions are subject to Mastercard’s currency conversion rate; EQ Bank does not add an additional FX fee or markup.
Promotional rates can be an effective short-term tactic to earn extra interest, but they often come with conditions and expiry dates. For many savers, accounts that offer consistently higher rates, no fees and straightforward terms may be a better long-term option.
Interest on the EQ Bank Notice Savings Account, US Dollar Account, Personal Account and Joint Account is calculated daily on the total closing balance and paid monthly. Rates are per annum and may change without notice. For the Personal Account, Joint Account and EQ Bank Card, the current base interest rate is 1.25% (the “Base Rate”). Customers who add and maintain qualifying recurring direct deposits of at least $2,000/month to a Personal Account or Joint Account are eligible for a bonus interest rate of 3.50% (the Base Rate plus an additional 2.25%) for the eligible accounts. Conditions apply. Please review the EQ Bank Bonus Interest Offer Terms and Conditions for details.
About the survey
The survey referenced in this article was conducted by EQ Bank from April 24 to 26, 2024, among a representative sample of 1,504 online Canadians who are members of the Angus Reid Forum. It was conducted in English and French. For comparison, a probability sample of this size would have a margin of error of +/-2.5 percentage points, 19 times out of 20.
More about savings:
- If you answer “yes” to these 2 questions, a notice savings account could be right for you
- Unsure about buying a home? Why you should open an FHSA now anyway
- How to save money in Canada: A new way that offers higher interest and more flexibility
- An alternative to GICs: This new bank account pays high interest on your cash holdings
- How changes to the Home Buyers’ Plan could affect your down payment
This article is sponsored.
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