Simplii High Interest Savings Account Review

Simplii High Interest Savings account review. Savings are meant to help you prepare for future financial spending or special projects. Many people keep savings in their simplii high interest account to earn higher interests and for rainy days.

Savings accounts are very necessary because without them inflation may tend to erode the value of your money at every point in time.

In this article, you’ll learn about simplii high interest account, high interest savings account, and other associated concepts to interesting yielding savings account.  

What is a High Interest Savings Account

A High-Interest Savings Account (HISA) is a type of savings account offered by banks or financial institutions that offers a higher interest rate than a standard savings account.

The interest rate for a HISA is typically higher because the account requires a larger initial deposit and/or minimum balance, and has restrictions on the number of withdrawals or transfers per month.

HISAs are generally considered a low-risk investment because the account holder’s deposit is insured by the government up to a certain amount. However, it’s important to note that the interest earned on a HISA may be subject to taxes, and the interest rate is not fixed and may change over time.

HISAs can be a good option for individuals who want to save money in a relatively low-risk investment while earning a higher interest rate than a standard savings account. They are also a good option for individuals who need easy access to their savings, as withdrawals can typically be made at any time.

About Simplii Financial 

Simplii Financial is a Canadian direct banking brand that offers a range of financial products and services, including Simplii savings account, chequing accounts, credit cards, mortgages, and loans. Simplii Financial was launched in 2017 and is wholly owned by the Canadian Imperial Bank of Commerce (CIBC) of Canadian Best Banks. 

Simplii Financial operates as an online-web-based financial institution, meaning that all of its products and services are offered through its website and mobile app. Customers can manage their accounts, pay bills, transfer funds, and deposit cheques using these digital channels.

Simplii Financial is known for its no-fee chequing accounts and high-interest savings accounts, as well as its user-friendly digital banking platform.

Simplii Financial also offers competitive interest rates on mortgages and personal loans, making it a popular choice for Canadians looking for a convenient and low-cost banking option. Simplii Financial provides a wide range of financial services including:

1. Bank Accounts such as chequing accounts, high-interest savings
2. Credit and Lending services such as credit cards, mortgages, personal loans, lines of credit 
3. Investment Products such as Tax-Free Savings Accounts (TFSAs), registered retirement savings plans (RRSPs), guaranteed investment certificates (GICs), and mutual funds

About Simplii High-Interest Savings Account 

Simplii Financial’s High-Interest Savings Account (HISA) is a savings account that offers a competitive interest rate and flexible access to funds. The simplii high interest savings account provides several interest rates to customers according to their balance. Simplii Financial’s high-interest account offers one the best new client interest rate of 5.25% in Canada.

How to open a Simplii High-Interest Savings Account

• To open a Simplii High-Interest Savings Account, you can follow these steps:
• Visit the Simplii Financial website or download the Simplii Financial mobile app.
• Click on “Open an Account” or “Get Started” on the homepage.
• Select “Savings Account” from the list of account options.
• Fill out the application form with your personal information, including your name, address, and Social Insurance Number (SIN).
• Once your application is submitted, Simplii Financial will review it and may contact you if additional information is needed.
• Once your account is approved, you can fund it by transferring money from another bank account or setting up a direct deposit. Then begin earning interest on your savings.
• You cal sign into your online or mobile banking to live chat with an agent

It is worth noting that to open a Simplii High-Interest Savings Account,

• You must be a Canadian resident who is at least 18 years old and live outside of Quebec.
• You need to also have a social insurance number (SIN).
• Proof of identity and address, such as a driver’s license or utility bill, as part of the application process.
• If you have any questions or need assistance opening your account, you can contact Simplii Financial’s customer service team for support.

Simplii Financial High-Interest Account Special Offers? 

Simplii Financial offers a wide range of special offers and bonuses to its broad base of customers. Some of the special perks and offers include: 

• 5.2% interest is offered to new clients, who open a new simplii financial high-interest savings account, this is a promotional offer. 
• No fee simplii chequing account is offered as a welcome bonus perk on your Simplii financial account
• You can get a $50 bonus deposited to your account for any referral you make to Simplii Financial. There is no limit to the number of referrals you can make. 

Simplii Financial High-Interest Account Rates and Fees 

Simplii Financial high interest rate varies depending on the balance you have in your bank account periodically. With Simplii financial you don’t pay monthly fees on its customers accounts. The interest rates offered by simplii financial to customers for savings depending on your balance are given in the below table.

Account Balance Range	Annual Rates
$0.00 to $50,000.00	0.40%
$50,000.01 to $100,000.00	0.40%
$100,000.01 to $500,000.00	0.40%
$500,000.01 to $1,000,000.00	1.00%
$1,000,000.01 and up	2.00%

Note that simplii financial’s on customer account interest rate is calculated by multiplying the daily interest rate (based on the applicable annual rate) by the daily closing balance of a customer’s account and is then paid into your account monthly. Simplii Financial’s interest rates can be changed without prior notice. 

Simplii High Interest Savings Accounts Pros and Cons

Simplii Financial high-interest account has several advantages and disadvantages these include:

Pros

• 5.25% new client interest rate
• You pay no monthly fee
• You pay no transaction fees
• The account requires no minimum balance to operate 
• You get a referral bonus of up to $50 on every person you refer to simplii financial 

Cons

• The high-interest account is not available in Quebec
• You do not have instant access in some instances 

Simplii Financial Funds Security 

Yes, simplii is a fully regulated Schedule 1 bank in Canada, the bank is owned by the Canadian Imperial Bank of Commerce (CIBC).

Simplii is insured by Canadian Deposit Insurance Corporation (CDIC), this means that if simplii fails to or goes bankrupt, you can get up to $100,000 of your deposited funds. Also, digital banks like simplii financial are very regulated just like traditional banks in Canada. 

How does a high-interest savings account work?

A high-interest savings account (HISA) works like a traditional savings account but typically offers a higher interest rate than standard savings accounts. The basic idea behind a HISA is to encourage people to save money by offering a higher interest rate on their deposits. Here’s how a HISA typically works:

• You deposit money into your HISA: You can typically deposit money into your HISA through electronic transfers, direct deposits, or by depositing cheques.
• Your money earns interest: The interest rate on your HISA is typically higher than the interest rate on a standard savings account. Interest is usually calculated daily and paid monthly or quarterly, depending on the account.
• You can withdraw money when you need it: Unlike fixed-term investments, HISAs are generally flexible and allow you to withdraw money when you need it without penalty. However, some HISAs may have restrictions on the number of withdrawals you can make each month or may charge fees for excessive withdrawals.
• Your deposits are insured: In Canada, most HISAs are insured by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per depositor, per insured category.
• You can monitor your account online: Most HISAs are available as online-only accounts, meaning you can monitor your balance and transactions online or through a mobile app.

High-interest Savings Account Rules

In Canada, high-interest savings account (HISA) rules are established by the Canadian government and enforced by the financial institutions that offer HISAs. Here are some of the key rules and regulations that apply to HISAs in Canada:

Deposit insurance:

Most HISAs in Canada are insured by the Canada Deposit Insurance Corporation (CDIC), which means that deposits are protected up to $100,000 per depositor, per insured category. This protection ensures that if the financial institution holding your HISA were to go bankrupt or become insolvent, your deposits would be protected up to the insured limit.

Interest rates:

There are no regulations that require financial institutions to offer a minimum interest rate on HISAs, which means that interest rates can vary widely between different HISAs. Some financial institutions may offer promotional rates to attract new customers, while others may adjust their rates regularly to reflect changes in the market.

Withdrawals:

HISAs typically allow for withdrawals at any time without penalty, although some accounts may limit the number of withdrawals or charge fees for excessive withdrawals. In some cases, there may be a minimum withdrawal amount.

Fees:

HISAs generally do not have monthly fees, but some accounts may charge fees for certain transactions or for excessive withdrawals. It’s important to review the fee schedule for any HISA you are considering to ensure that you understand the costs associated with the account.

Eligibility:

To open a HISA in Canada, you must be a Canadian resident and meet the age requirements set by the financial institution. Some HISAs may have additional eligibility requirements, such as minimum income or credit score requirements.

High-Interest Savings Account Investment

High-Interest Savings Accounts (HISAs) can be a viable investment option for individuals who are looking for a low-risk way to earn a return on their savings. Here are some of the reasons why HISAs can be a good investment:

Low risk:

HISAs are typically considered to be low-risk investments, as they are generally insured by the Canadian Deposit Insurance Corporation (CDIC) and are offered by established financial institutions. This means that the funds invested in a HISA are protected up to a certain limit, and there is little risk of losing your investment.

Guaranteed return:

Unlike other types of investments such as stocks or mutual funds, HISAs offer a guaranteed return on your investment in the form of interest. This means that you can expect to earn a set amount of interest on your investment, regardless of market conditions.

Liquidity:

HISAs offer a high level of liquidity, which means that you can access your funds at any time without penalty. This makes HISAs a good option for individuals who may need to access their funds quickly or who want to maintain flexibility with their investments.

Competitive interest rates:

Many HISAs offer competitive interest rates that are higher than traditional savings accounts, which can help you earn a higher return on your investment over time.

Note that HISAs are not the best investment option for everyone. For example, individuals with a longer investment horizon, or people with high risk tolerance who are comfortable taking on more risk may be better served by other investment options, such as stocks or mutual funds. 

High-Interest Savings Account Taxes

Like other forms of income, the interest earned on a High-Interest Savings Account (HISA) is subject to taxes in Canada, according to the Canadian revenue agency. Here’s what you need to know about HISA taxes:

Taxable income:

Any interest earned on a HISA is considered taxable income and must be reported on your income tax return for the year in which it was earned.

T5 statement:

Financial institutions are required to issue a T5 statement to their customers by the end of February each year, which outlines the amount of interest earned on the HISA during the previous tax year. This statement should be used when preparing your income tax return.

Tax rate:

The amount of tax you will pay on your HISA interest earnings will depend on your marginal tax rate, which is based on your total taxable income for the year.

Registered HISAs:

Registered HISAs, such as Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs), offer tax advantages that can help you minimize the taxes you pay on your HISA interest earnings. For example, interest earned on a TFSA is not subject to taxes, while contributions to an RRSP can be deducted from your taxable income.

Conclusion

HISA’s a good option for Canadians wanting to earn interest on their saved funds, especially customers of simplii which is a digital bank fully owned by the Canadian Imperial Bank of Commerce. With the information we have shared with you in this guide, you can go ahead and open your HISA with simplii and earn mouth-watering interest on your savings.