Although it can be tempting to spend it, having some cash saved up is always a great thing, especially if you’re storing it in an affordable savings account with a good rate. Luckily, there are plenty of financial institutions that can provide you with this type of account. For example, Tangerine offers some of the best savings accounts in Canada.
Who Is Tangerine?
Formerly named ING Direct, Tangerine is a digital banking platform that was bought by Scotiabank in 2012. While they don’t have physical branches like normal banks (save for a few Tangerine Cafés and pop-up locations in major cities), they’re well known for their excellent customer service and are one of the most popular online banks in Canada.
Types of Tangerine Savings Accounts
As a client of Tangerine, there are five different kinds of savings accounts you can open:
If you’re looking for simple and traditional, you can’t go wrong with the regular Tangerine Savings Account, which has zero monthly fees or minimum balance limit, as well as:
- A standard interest rate of 1.00%
- No extra services charges
- Periodic bonuses and promotions
Tax-Free Savings Account
Like the regular savings account, a Tangerine TFSA comes with no fees or minimum balance. However, you must be at least 18 years old to sign up. Other features include:
- Tax-free withdrawals and returns (if you stay within your contribution limit)
- An interest rate of 1.00%
- Yearly contribution limit of $6,000 (limits are set by the government)
- Total contribution limit of $81,500 (as of January 2022)
RSP Savings Account
The Tangerine Retirement Savings Plan Account is another free account with no balance limits and a 1.00% interest rate. balance. With it, you also get these benefits:
- Tax-sheltered contributions that can be deducted from your taxable income
- Contributions aren’t subject to tax until you withdraw funds
- Option to split your income with a Spousal RSP Account
- Annual RRSP contribution limit of 18%, to a maximum of $29,210 (as of 2022)
US$ Savings Account
Do you frequently earn US Dollars? If so, the Tangerine US$ Savings Account is also free and comes with zero minimum balance and a rate of 0.10%. Other features include:
- No unfair services charges or fees to deposit USD
- Similar bonus prizes and promotions as all Tangerine Savings Accounts
- Current US exchange rates:
- 1.301 for Buying
- 1.256 for Selling
RIF Savings Account
When you turn 71, the government requires you to withdraw all the funds in your RRSP, transfer them to an RRIF (Registered Retirement Income Fund), buy an annuity (a fixed payment plan) or use a combination of those options to close out your account.
The Tangerine RIF Savings Account allows you to store RRSP funds, as long as you make mandatory minimum withdrawals each year. You also get the following:
- An interest rate of 1.05%
- Zero fees or monthly balance
- Funds are tax-sheltered until you make your minimum yearly withdrawal
Additional Features Of Tangerine Savings Accounts
As you can see, the best thing about all Tangerine savings accounts is that none of them involve any service fees or minimum monthly balance requirements. If you open your savings account with Tangerine, you’ll have access to these features too:
- Automatic Savings Program (ASP) – This program allows you to set your own savings goals and transfer money between your Tangerine accounts accordingly.
- Financial Tools – The Tangerine platform has lots of other great features, such as a Savings Calculator, a Mortgage Amount Estimator and a Tax Support Centre.
- Quality Service – As mentioned, Tangerine’s toll-free customer service is said to be some of the best in Canada. Plus, their everyday banking line operates 24/7.
- Other Products – Holding a balance of at least $250,000 in a Tangerine savings or investment account will help you qualify for their exclusive World Mastercard.
Overview Of Tangerine Savings Accounts
|Account Type||Interest Rate||Main Features|
|Savings Account||1.00||No fees or monthly balance requirements|
|Tax-Free Savings Account||1.00%||– Tax-free withdrawals and returns|
– Annual contribution limit of $6,000 to a total of $69,500 (as of 2022)
|RSP Savings Account||1.00%||– Tax-sheltered retirement contributions|
– Split income with Spousal RSP Account
– Annual RRSP deduction limit of 18% to a total of $29,210 (as of 2022)
|US$ Savings Account||0.10%||– Free USD deposits and returns|
– USD Exchange Rates: 1.301 for buying and 1.256 for selling
|RIF Savings Account||1.05%||Tax-sheltered retirement contributions until yearly minimum withdrawal is due|
Advantages Of Choosing A Tangerine Savings Account
Let’s take a look at some of the things that make Tangerine savings accounts popular:
- No Monthly Fees or Services Charges – Essentially, if you’re willing to do the majority of your banking and saving online, Tangerine allows you to do it for free.
- Unlimited Transactions – Some savings accounts have a set number of monthly transactions or will charge you per action, this isn’t the case with Tangerine.
- Decent Interest Rates – Tangerine Savings Accounts also feature higher rates than most other bank accounts, even those offered by Canada’s Big Five banks (TD, RBC, etc.).
- Good Exchange Rates – Compared to other currency conversion services in North America, Tangerine US$ Savings Accounts have lower exchange rates too.
- No Monthly Balance Limit – You can deposit any sum into your account and earn interest on it, while other banks charge fees if you don’t hold a set balance.
- Special Offers – Various promotions may be available, like a welcome bonus of 2.1% for the first 5 months and extra cash for successfully referring new clients.
- ATMs – After you open your Tangerine savings account, you’ll have access to more than 3,500 ATMs across Canada through the Scotiabank ABM network.
- Online Banking – Since Tangerine is an online bank, you can perform pretty much any transaction using your mobile device or from the comfort of home.
- Automate Savings – Using Tangerine Recipes, you can mix and match up to 7 automatic savings options, then sit back and watch your account balance grow.
Disadvantages Of Choosing A Tangerine Savings Account
It’s equally important to understand the downsides of Tangerine savings accounts:
- Low Rates – Although Tangerine offers decent base rates, they may not be as good as other online banks. Their rates have even gone down in recent years.
- Hard to Move Money – Some clients have complained about long transfer times or complications with the process. Plus, there are fewer places to withdraw cash.
How To Open A Tangerine Savings Account
Another positive thing about Tangerine is how easy it is to open a savings account. All you have to do is go to their website, click “Sign Me Up” and follow the prompts. The whole procedure should only take a few minutes. During it, you’ll have to input your:
- Email Address
- Date of Birth
- Phone Number(s)
- Social Insurance Number (SIN)
- Employment Details
To confirm your identity properly, Tangerine will ask for a piece of government photo ID as well, such as your passport, driver’s license, or health insurance card.
Tangerine Savings Account FAQs
Are savings accounts at Tangerine safe?
Are Tangerine savings accounts free?
Do I need my SIN to open a Tangerine savings account?
How is interest paid out through a Tangerine savings account?
Tangerine bank accounts come with a lot of conveniences and benefits that make them great for anyone who’s looking to bank (almost) exclusively online. That said, there are at least a couple of reasons why a Tangerine savings account might not be right for everyone, so make sure to speak with a customer service representative if you have any questions or inquiries.