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Rob Carrick's guide to the best paying alternative lender GIC and savings accounts Add to ...

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The lowdown on high rates

The troubles at Home Capital are a reminder that the alternative banks, trust companies and credit unions offering premium interest rates may not be as stable as the big banks. Here's a rundown on a selected group of alternative players that are widely available to Canadians.

Financial InstitutionSavings Rate (%)One-Year GIC Rate (%)Five-Year GIC Rate (%)Deposit Insurance ProviderQuick Profile
AcceleRate Financial1.71.852.45 Deposit Guarantee Corp. of ManitobaA division of Crosstown Civic Credit Union in Manitoba
Achieva Financial1.71.852.35DGCMA division of Cambrian Credit Union in Manitoba
Alterna Bank1.91.51.9Canada Deposit Insurance Corp. (listed as CS Alterna Bank)A subsidiary of Alterna Savings and Credit Union in Ontario
Canadian Tire Bank1.31.12.5CDICA division of Canadian Tire Corp.
EQ Bank2.3n/an/aCDICPart of Equitable Bank, an alternative mortgage lender
Home Bank11.652.2CDICA subsidiary of Home Trust, which in turn part of alternative mortgage lender Home Capital
Home Trust11.62.15CDICA subsidiary of Home Capital
Hubert Financial1.71.95*2.4DGCMA division of Sunova Credit Union in Manitoba
MAXA Financial1.71.852.35DGCMA division of Westoba Credit Union in Manitoba
Motive Financial1.51.532.25CDICOwned by Canadian Western Bank, which has been active in alternative mortgage lending
Oaken Financial1.7522.5CDIC (through Home Bank and Home Trust)Home Trust is the parent company, but Oaken is a trademark of Home Bank; both are part of the Home Capital corporate family
Outlook Financial1.71.852.35DGCMA division of Assiniboine Credit Union in Manitoba
Peoples Trust1.451.852.25CDICA Vancouver-based trust company and mortgage lender
President's Choice Financial0.81.42CDICJointly run by Canadian Imperial Bank of Commerce and Loblaw Cos., the supermarket chain
Tangerine0.81.32CDICOwned by Bank of Nova Scotia
Zag Bank1.651.22CDICOwned by Desjardins Group, the Quebec-based financial services giant

*Quarterly term with a 1.95 per cent average annual rate / Notes: Interest rates are accurate to the morning of May 10 and are subject to change; GIC rates are quoted for non-registered, annual compound deposits; rates for registered deposits and GICs that pay monthly or semi-annually may differ.

Deposit Insurance Comparison

Here's how coverage from CDIC compares to the Deposit Guarantee Corp. of Manitoba, which backs a wide variety of savings accounts offered nationally by divisions of Manitoba-based credit unions. Credit unions elsewhere typically serve local clients and have deposit insurance through plans for their province.

Coverage LimitPrincipal and Interest Included in CoverageGovernment-BackedGIC Terms CoveredDeposits in Foreign Currencies CoveredCoverage Applies to Customers Across Canada
Canada Deposit Insurance Corp.$100,000 per insured category*YesYes - CDIC is a federal crown corporationFive years and lessNoYes
Deposit Guarantee Corp. of ManitobaThe guarantee is unlimitedYesNo - the Manitoba government is not legislatively required to support the DGCM financiallyNo limitYesYes

*Seven categories, including deposits held in one name and held in more than one name; also, RRSP, RRIF and TFSA deposits / Sources: Banks, credit union websites, Cannex.com, CDIC, DGCM

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