Saven Financial is one of many Canadian banking companies that offer a suite of digital financial services. Per the name, it focuses on offering a wide range of opportunities for clients to save over the long term and provides an intuitive platform that allows users to control their personal finances.
Saven balances online financial products with customer service to provide clients with a comprehensive series of financial opportunities to build wealth. If you’re considering a new investment platform, or are simply looking at your options, the first step is research. In this piece, we take a deep dive into this business to assess what it has to offer, its authenticity, and its validity as a solution.
Who Is Saven Financial?
Saven Financial is a division of FirstOntario Credit Union, a business that originated in 1939 and has an estimated 126,000 members. In early 2021, Saven launched as a smart, digital platform geared toward those looking for an aggressive savings strategy. The Saven interface serves two purposes.
The first is to help existing FirstOntario Credit Union members save quickly and in a straightforward way. It offers access to high-interest savings opportunities and saves participants from needing to strategize or attend meetings in person with the bank.
The second is that the online service can drive clients to the FirstOntario Credit Union. To participate, users of Saven must become members of the credit union by investing $25 upfront. This serves to reinforce the membership numbers and drive profits for the credit union while, ideally, growing savings for clients. The increased participation can help members; since, unlike banks, credit unions are owned by members. This means that any profits get allocated in the form of dividends, or according to the general consensus of the union members.
Saven Financial High-Interest Saving Accounts
A Saven Financial High-Interest Savings Account (HISA) is a low-cost financial product that enables clients to save quickly. It is ideal for those that are willing to invest heavily in savings without wanting to restrict access to their funds. The HISA service is affordable and accessible to any member of the credit union.
Saven Financial HISA Features
The high-interest savings account includes multiple features, each designed to make it more competitive relative to the other applications on the marketplace. Among its useful features are:
- Competitive Interest Rate: The account features an impressive 1.50% interest rate that is calculated every day and paid at the end of each month. Outside of the initial investment, there is no minimum deposit for your savings account.
- No Investment Minimum: To get started with Saven, it requires only a $25 initial sign-up deposit on which you can earn dividends annually. Since Saven is a division of FirstOntario Credit Union, your $25 deposit will be held by them along with your future dividend payments.
- No Account Fees: Saven has no monthly account fee and all transactions are also free. If your account does not have sufficient funds to cover a transaction, you will be charged for this.
- Free Transfers: A major advantage of having a HISA is that it lets you transfer money freely and without incurring any charges. You can transfer money to and from the savings account without facing any fees or penalties.
Saven Financial High Rate GICs
Short for a Guaranteed Investment Certificate, a GIC is a type of savings where the deposited money earns a fixed interest rate that is guaranteed for a set period. With these accounts, you can set the timeline at different thresholds (1 to 5 years). Keep in mind that you cannot access your money during the set term. If you require access to the invested funds you may want to choose a shorter term.
Saven Financial GIC Features
GICs are a popular financial tool for their unique opportunity to grow investments at a faster rate than many other options. Among the features of a Saven GIC are:
- Safe And Secure Investment: The GIC funds are guaranteed and insured by the credit union to protect against risk. Both the principal amount and the interest you earn are entirely secure throughout.
- Flexible Terms: This type of account features flexible terms, allowing you to invest for as little as a single year and as long as five years. You can choose any time period between so you can customize your savings approach.
- High Interest: GICs through Saven Financial come at a competitive rate of up to 3.20% interest per annum depending on the term you choose. The interest you earn through your GICs can be paid out annually to your Saven high-interest savings account or reinvested into your GIC.
- Minimum Investment: Saven’s GIC requires a minimum of $1,000 to invest and there is no maximum. However, do note, that only $250,000 of your balance is insured by the Financial Services Regulatory Authority of Ontario (FSRA). Once the funds are invested, they are locked for the entire term of the investment.
Saven Financial Overview
| Account types | – High-Interest Savings Account – High Rate Non-Redeemable GICs |
| Minimum deposit | – Membership to FirstOntario Credit Union: $25 – HISA: none – GIC: $1,000 |
| HISA rate | 1.5% |
| GIC rate | Up to 3.20% |
| Fees | No monthly fees; only non-sufficient fund fees |
| Deposit Insurance | Insured to a maximum of $250,000 |
| Parent | FirstOntario Credit Union |
Saven Financial Fees
While Saven Financial is ultimately a low-cost institution there are a just a couple of fees you should be aware of.
Transaction Fees
For electronic funds transfers, cheque deposits (up to $25,000), and e-transfers, there are no fees or charges.
OOPS Fees
If your account balance is unable to cover a pre-authorized debit, a $50 fee will be charged. If an item returns to another financial institution due to Non-Sufficient Funds, Saven charges $10. For overdraft (the cost of a negative balance) 21% interest will be charged (calculated on a daily basis, and charged on a monthly basis).
E-Transfer Limits
There are also e-Transfer limits, these include:
- Max. you can send per transaction: $3,000
- Max. you can receive per transaction: $25,000
- Daily sending max.: $10,000
- Weekly sending max.: $10,000
- Monthly sending max.: $20,000
Pros And Cons Of Saven
There is a whole range of benefits and pitfalls with any financial institution. Identifying the correct one involves thorough research and analysis so that you can determine the right fit for you. Understanding how the company works involves assessing if its advantages outweigh its downsides.
Pros Of Saven Financial
- High-Interest Rates – Saven has one of the highest interest rates in the market on both GICs and high-interest savings accounts.
- Secured – Its deposits are secured by the FSRA (an institution-specific to Ontario) to a maximum of $250,000.
- No Fees – There are no monthly fees or costs for standard transactions.
- Earn Dividends – Additionally, since it is a credit union rather than a bank, you can benefit from dividends on its earnings.
Cons Of Saven Financial
- Limited Access – This service is only available to residents of Ontario.
- Limited Services – It doesn’t support accounts with currency in USD and doesn’t have many of the other services common to its competitors. The Saven platform offers a limited series of products, without any credit cards, loans, or mortgages.
- Non-Registered Accounts – There are no registered accounts or other services, simply high-yield savings accounts and guaranteed investment plans.
Additional Reading
How To Open An Account At Saven Financial?
Saven is a subsidiary of FirstOntario Credit Union, a business that’s been operational since 1939. Saven, on the other hand, opened on May 25, 2021, as a digital savings solution for its members. They offer a suite of financial products for Ontarians including high-interest savings accounts and GICs. To open an account, you can follow these steps:
Step 1. Become A Saven Member
The first step is to join FirstOntario Credit Union because all Saven members are company shareholders. It enables members to run for board membership and allows you to profit from the annual dividends. To gain membership, simply need to meet their eligibility requirements and make an initial $25 investment in the company. The credit union will automatically make you a Saven member, and you can begin to access your account online.
Saven Membership Eligibility Requirements
To be a member of the FirstOntario Credit Union, you must meet certain criteria.
- You must reside in the province of Ontario
- You must be 18 years or older
- You must provide proof of their identification, and residence, then provide $25.
Step 2. Open An Account
An HISA is opened automatically when you sign up and become a member with Saven since it is also your transactional account. You can opt for a chequing account through the credit union, but the money in Saven is exclusively for savings purposes.
Step 3. Fund Your Saven Account
Once you establish your Saven account, you can fund your account through an Interac e-Transfer or by creating a link directly between the account you hold at another institution and the Saven account.
The Saven mobile application also lets you deposit cheques into your Saven account. Subject to a holding period for cheques, the fund transfer is immediate and you can begin saving right away.
Step 4. Buy A GIC
GICs are products you purchase through Saven, and you can buy one when you become a member. Even if you don’t choose a GIC right away, you can purchase one for as little as $1,000.
Saven Financial FAQs
Is Saven Financial insured?
Who owns Saven Financial?
Does Saven Financial have an App?
Is Saven Financial safe?
Does Saven have a TFSA or RRSP account?
Bottom Line
While Saven Financial is relatively new in the market, it’s already shown impressive growth in less than a year. Through its suite of products, it’s able to offer high-yield savings to its clients. If you live in Ontario and are looking to save, Saven is worth investigating.
