The Globe and Mail reports in its Tuesday edition that the big banks have found a way to save money in these troubled times -- by slashing the interest rate on savings accounts to near zero. The Globe's Rob Carrick writes that building a cash reserve is a top financial priority with a recession looming. The big banks, however, are not a great place to do it. Many alternative banks offered interest rates around 2 per cent as recently as Monday and are members of the Canada Deposit Insurance Corp. Mr. Carrick provides big-bank posted savings rates as of Monday: BMO Premium Rate Savings: 0.01 per cent; CIBC eAdvantage Savings Account: 0.3 per cent; Scotiabank MomentumPlus Savings: 0.15 per cent, with premium interest of between 0.5 and 1.1 per cent paid if you do not withdraw money for up to 360 days; RBC High Interest eSavings: 0.05 per cent; Simplii Financial: 0.5 per cent for this CIBC division; Tangerine: 0.4 per cent for this division of Scotiabank; TD High Interest Savings Account: Zero on balances up to $4,999.99; 0.1 per cent for higher balances. Mr. Carrick recommends using the Canadian High Interest Savings Bank Accounts website to compare rates and then cross-reference the names with the list of CDIC members.
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