Canada’s newest bank, EQ Bank, has announced the launch of a new savings account, the EQ Savings Plus Account, which features a 3% interest rate, no monthly fees and no minimum balance requirements.
The rate offered by EQ is comfortably market leading, with most banks offering less than 1%, which puts them below the current inflation rate. However, the EQ rate is expected to be temporary. Chief Executive of EQ parent Equitable Bank, Andrew Moor, said “Three per cent was deliberately chosen to be above the market and to make noise in the market in the short term”, “But certainly our goal is always to be offering a competitive rate”.
The EQ Savings Plus Account also offers a handful of unique features in the Canadian market including unlimited online bill payments from the account and five free Interac e-transfers per month, giving the account some of the characteristics of a checking account. This is likely to be popular with consumers, with RFi Group data showing that 67% of savings account holders have used money from their savings to fund their lifestyle, suggesting that the ability to easily access their funds, without compromising their ability to earn a strong return, could be appealing to the market.
Source: RFi Group Canadian Priority and Retail Banking Council H2 2016
Image source (header): EQ Bank