Meet the Notice Savings Account (NSA) from EQ Bank. This new savings account lets Canadians access high regular interest rates while maintaining flexible access to their funds. Read on to learn how an NSA can help you reach your short-, medium- and long-term savings goals.
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EQ Bank Notice Savings Account
- Monthly fee: $0
- Interest rates: 4.50% for 10-day notice, 5.00% for 30-day notice. Read full details on the EQ Bank website.
- Minimum balance: n/a
- Eligible for CDIC coverage: Yes
What is a notice savings account?
A notice savings account is an account designed to offer a healthy interest rate (like a GIC) while also allowing you to access your funds when needed (like a HISA). The key difference with an NSA is that you must provide a minimum amount of notice before you withdraw funds, hence the name.
If you’ve never heard of notice savings accounts, you’re not alone. Although these types of accounts are common in the United Kingdom and Australia, they’ve rarely been available to most Canadians—and they’re often restricted to business customers or aimed at high-net-worth individuals.
EQ Bank is changing all that. Its new Notice Savings Account is the first in the nation to offer NSA benefits to all Canadians, with no fees and no minimum deposit. Let’s take a closer look.
How does the EQ Bank Notice Savings Account work?
As its name suggests, an NSA is a savings account, meaning that you earn interest on funds you deposit. Typically, the more notice customers agree to give their bank before making a withdrawal, the better the rate they earn.
When you open an EQ Bank Notice Savings Account, you choose between two interest rates: 4.50% and 5.00%. You can earn 4.50% on your deposit by agreeing to give the bank 10 days’ notice before withdrawing money. If you want to earn 5.00%, the notice period is 30 days. (Read full details on the EQ Bank website.)
Ten or 30 days may seem like a long wait to withdraw money from a bank account, but keep in mind that an NSA is meant for longer-term savings—and it pays higher interest accordingly.
Once you deposit your money, you’ll earn interest daily. Plus, you can continue to make deposits to the account. The EQ Bank Notice Savings Account is not a registered account, so you don’t need to keep track of your contributions, and there’s no paperwork to take money out. Simply make a withdrawal request online or through EQ Bank’s mobile app. After 10 or 30 days, depending on which account you’ve chosen, your money will be deposited into your selected account.
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