More than just a huge retail chain is Canadian Tire. Guaranteed Investment Certificates (GICs), credit cards, TFSAs and a high-interest savings account are all available through its financial services division, Canadian Tire Bank.
Options are few for Canadians hoping to get a respectable return on their savings account.
Earning “peanuts” (e.g., 0.01% to 1.00%) with your regular bank or selecting a higher-paying online HISA are your options.
This study of the Canadian Tire Bank Savings account addresses its characteristics, advantages, drawbacks, substitutes, and other financial products the bank offers.
Canadian Tire Bank High-Interest Savings Account
Currently offering a savings interest rate of 3.70%, this HISA is among the best available in Canada.
Its features comprise:
Not a monthly account charge
No lock-in duration or minimum balance
Client service hours are 8 a.m. to 9 p.m. ET Monday through Friday and 8 a.m. to 6 p.m. ET on Saturday.
Online banking available round-the-clock
Insurance from CDIC
Canadian Tire TFSA
Returns on your contributions are tax-free with a Tax-Free Savings Account (TFSA). The TFSA yearly cap for 2024 is $7,000.
Benefits from a Canadian Tire TFSA include:
Rate of interest: 3.70%
Absence of recurring costs
No lock-in duration or minimum balance needed
Round-the-clock internet banking
You may also keep GIC investments in a registered or non-registered investment account with the bank.
Canadian Tire Bank GICs
Your money is guaranteed to return over a predetermined time frame with a Guaranteed Investment Certificate (GIC).
GIC terms at Canadian Tire Bank range from one to five years. The current rates (as of May 5, 2024) are: The minimum investment is $1,000.
- One-year GIC: 4.50%
- Two years’ GIC: 4.10%
- GIC for three years: 4.03%
- 4-year GIC: 3.94%
- GIC for five years: 3.80%
Canadian Tire Bank Fees
The Canadian Tire Bank does not charge monthly maintenance for its savings programs. Having said that, the kinds of transactions you do may result in the following service costs:
Canadian drafts are $5.
Wire transfers to financial institutions not associated with your linked account: $25
Wire transfers cost $30 to banks outside of Canada.
- Canadian Drafts: $5
- Wire transfers to financial institutions other than your linked account: $20
- Wire transfers to banks located outside Canada: $30
- Non-Sufficient Funds (NSF): $30
- Overdraft: $5
- Stop payments: $10 – $20
- TFSA transfer to another bank: $50
- Inactive accounts: $20 (after two years) or $30 (after five years and nine years)
Canadian Tire Bank HISA
You have to be a Canadian resident (apart from Quebec) and at least 12 years old to open a Canadian Tire High-Interest Savings Account.
HISA applications may be sent online or by paper to Canadian Tire Bank, P.O. Box 3000, Welland, Ontario, L3B 5S5.
Customer service can also be reached at 1-866-681-2837.
Your Social Insurance Number (SIN) and a cheque made out to you from an outside bank account that you own are required.
You can set up an automatic savings plan and this cheque ties your Canadian Tire savings account with your external checking account once it clears.
This enables fee-free withdrawals from your funds as well.
Canadian Tire HISA Pros and Cons
One of the highest interest rates available in Canada is offered by this HISA, if you’re looking for a fantastic rate that increases your savings.
Up to $100,000 per depositor, each covered category, the Canada Deposit Insurance Corporation (CDIC) will insure your deposits.
With internet banking, you may make transactions around-the-clock and the HISA allows automatic savings programs.
This is not the account for you if you do unusual transactions or would rather bank in person. You cannot walk into actual branches. You can, at most, talk to customer service by calling their phone number.
This Canadian Tire HISA does not include checking account capabilities, hence you cannot deposit checks or send Interac e-Transfers to friends and family, unlike the Savings Plus Account from EQ Bank.
Their website also appears out of date, and there isn’t a specific mobile banking app.
Finally, citizens of Quebec cannot take advantage of this HISA or TFSA.
Canadian Tire Bank HISA vs. EQ Bank Savings Plus Account
EQ Bank is among my top picks for high-interest savings in Canada.
For TFSAs, RSPs, and non-registered savings, the EQ Bank Savings Plus Account currently provides a high savings rate.
Furthermore provided by EQ Bank are:
Free pre-authorized debits and bill payments for ever
Free Interac e-Transfers and electronic fund transfers for ever
Deposit checks for free using your phone
Access to reasonably priced foreign money transfers
With periods ranging from three months to ten years, EQ Bank also offers GICs for both registered and non-registered accounts.
As of May 5, 2024, the EQ Bank GIC rates are:
- 1 year: 5.25%
- 2 years: 5.00%
- 3 years: 4.80%
- 4 years: 4.60%
- 5 years: 4.55%
Canadian Tire Bank Overview
Canadian Tire Corporation, Ltd. owns Canadian Tire Bank. Founded in 1961, its previous name was Canadian Tire Financial Services.
Popular rewards credit cards from the bank include the Triangle Mastercard, Triangle World Mastercard, and Triangle World Elite Mastercard.
It also provides two more credit cards that are excellent for cash back and petrol rewards. Here they are:
- Gas Advantage Mastercard
- Cash Advantage Mastercard
Canadian Tire Bank’s less popular products are:
- High-Interest Savings Account (HISA)
- Guaranteed Investment Certificates (GIC), and
- Tax-Free Savings Account