AcceleRate Financial is one of Canada’s top digital banks that allows Canadians to earn decent interest rates on its financial products and services. It offers competitive interest rates on registered and cash savings accounts and Guaranteed Investment Certificates (GICs).
In this comprehensive AcceleRate financial review, I’ll talk about the digital bank, its products, rates, pros and cons, and how to sign up for an account today.
Read on to learn more.
About AcceleRate Financial
AcceleRate Financial is a digital bank established in 2010 to provide Canadians with savings and investment interest rates with zero monthly fees.
This digital bank is a virtual division of Access Credit Union, a Manitoba-based credit union. Notably, it is one of Canada’s high-interest savings account providers.
The bank is an amalgamation of several Manitoba credit unions, including Crosstown Civic Credit Union. It has over 89,000 members and over $6 billion in assets under management. Their deposits are 100% protected by the Deposit Guarantee Corporation of Manitoba.
AcceleRate Financial operates the same way traditional banks operate but operates entirely online. It has no physical location or branch to visit for one-on-one service.
Benefits and Downsides of AcceleRate Financial
Here are the benefits and drawbacks of AcceleRate Financial based on my personal experience:
- 100% deposits guaranteed.
- Easy to use
- Decent interest rates
- Zero monthly maintenance fees
- Zero minimum balance
- INTERAC® e-Transfer fees
- No physical location
- A long list of fees
AcceleRate Financial Products
AcceleRate Financial provides Canadians with five financial products. These are savings, GICs, TFSAs, RRSPs and RRIFs.
AcceleRate High-Interest Savings Account
The AcceleRate Savings account offers competitive interest rates on your savings. Your interest is calculated daily and paid at the end of each month.
The AcceleRate savings account offers:
- 3.40% interest rate
- Immediate deposit interest earning
- Free personal cheques
- 100% guaranteed
- Zero monthly service fees
- No minimum balance required
AcceleRate Guaranteed Investment Certificates (GICs)
The AcceleRate Guaranteed Investment Certificates (GICs) offer a stress-free investment portfolio with guaranteed savings return. With AcceleRate GICs, you have up to seven investment term options with varying rates.
Updated GIC rates for 2024 are:
- 1-Year Term – 5.00%
- 2-Year Term – 5.25%
- 3-Year Term – 4.85%
- 4-Year Term – 4.90%
- 5-Year Term – 5.00%
- 6-Year Term – 5.00%
- 7-Year Term – 5.00%
The AcceleRate GICs offer:
- 5.00% rate on 1-year
- $1,000 minimum deposit
- 100% guaranteed
- 14-day rate guarantee for AcceleRate GIC maturity renewal
- Non-redeemable before maturity
- Zero monthly service fees
AcceleRate Tax-Free Savings Accounts
The AcceleRate Tax-Free Savings Account (TFSA) allows you to save your money tax-free. It is a great tool designed to help you put away some extra cash, supplement your retirement savings or save while in retirement.
The AcceleRate Tax-Free Savings Account (TFSA) offers:
- Zero deduction on interest earned
- Zero maintenance fees
- Two account variables
There are two investment options for the AcceleRate TFSA:
- AcceleRate Variable TFSA: The AcceleRate Variable TFSA is flexible savings account with high interest that may not be declared as income.
- AcceleRate GIC TFSA: AcceleRate TFSA GIC is an investment vehicle with one to seven years of options. Therefore, it is suitable for long-term investment goals. You only need a minimum deposit of $1,000 to start this account.
AcceleRate Registered Retirement Savings Plans (RRSPs)
The AcceleRate RRSP helps you save more for retirement. They are registered with the federal government and allow you to reduce your income tax amount for every year you contribute.
Note: You must transfer your RRSP to RRIFs by the end of the year you reach 71 years old. If you choose not to convert to an RRIF, you must withdraw or transfer your money.
The AcceleRate Registered Retirement Savings Plan (RRSP) offers:
- 100% guaranteed
- Immediate interest-earning upon deposit
- No minimum balance
- Tax-free interest earned
- Two account variables
The AcceleRate RRSP offers two different accounts:
- AcceleRate Variable RRSP: This account has zero-fee and tax-efficiency of AcceleRate savings account and dividends.
- AcceleRate RRSP GIC: This account allows you to select a term between one and seven years with the assurance that the rate will be guaranteed for that duration. Moreover, this is ideal if you want to achieve a goal without taking any risks.
AcceleRate Registered Retirement Income Funds (RRIFs)
Suppose you are retired or about to retire and have made RRSP contributions. In that case, the AcceleRate RRIF eases the stress of withdrawing your retirement savings by providing a convenient way to receive your retirement payments.
If you currently have an RRIF with another financial institution in Canada, you can transfer it to AcceleRate Financial.
The AcceleRate Registered Retirement Income Funds (RRIFs) offer:
- $5,000 minimum deposit
- Up to 20% additional lump sum payments (with conditions apply)
- RRIF payments paid to an AcceleRate savings account
The AcceleRate Registered Retirement Income Funds (RRIFs) offer two variable accounts:
- AcceleRate Variable RRIF: With this account, you pay no fees as your account grows tax-free. This is an excellent vehicle for building financial security for your retirement days.
- AcceleRate RRIF GIC: This account gives you up to seven years guarantee on your investment rate, helping you accumulate long-term capital growth.
AcceleRate Financial Fees
AcceleRate Financial doesn’t have monthly maintenance fees and fees on deposit. However, the following fees apply to the different banking services offered by AcceleRate Financial:
Personal cheque order
Initial cheque, Interac direct payment or electronic funds withdrawal/month
Each additional debit
Note: AcceleRate Financial Fees are subject to change occasionally without notice.
Is AcceleRate Financial Safe?
AcceleRate Financial is safe. It is highly secure due to its affiliation with Access Credit Union. Your money is managed by a licensed financial institution that conforms to stringent privacy and security procedures.
Also, your deposits and accrued interest on AcceleRate Financial are 100% guaranteed by the Deposit Guarantee Corporation of Manitoba.
AcceleRate Financial vs EQ Bank: Which to Choose?
When it comes to online banking in Canada, EQ Bank is a household name. Like AcceleRate Financial, EQ Bank is also an online-based bank leading to its low operational cost and high-interest yield.
EQ Bank was launched in 2016. It also serves Canadians through five different financial products with competitive offers, including:
- Savings Plus Account
- Joint Savings Plus Account
- TFSA Savings Account
- Guaranteed Income Certificate (GIC)
- Retirement Savings Plans (RSPs)
However, EQ Bank has higher rates and low fees than AcceleRate Financial. EQ Bank has unlimited free INTERAC® e-transfers, while AcceleRate Financial charges $1 for the same service.
If you are looking for free unlimited fund transfers and bill payments, mobile cheque functionality, or low online banking, EQ Bank got you covered.
Final Thoughts on AcceleRate Financial Review
There’s no complete mention of the best online banks in Canada without the mention of AcceleRate Financial. It’s important to have a critical evaluation before depositing your money in it.
This AcceleRate Financial review is based on personal experience to help you decide when choosing the best online bank in Canada. Therefore, the ball is now in your court!
Take the final step of opening your online bank today.
All the best!.
READ MORE: Achieva Financial Review
FAQs on AcceleRate Financial Review
Are there Fees or Charges to Open an AcceleRate Financial Account?
AcceleRate Financial doesn’t charge any fee for creating an account. However, different charges apply to different ranges of services.
How Do I Make a Deposit on My AcceleRate Financial Account?
All you need to deposit in your AcceleRate Financial account is to download the AcceleRate Financial app on your Android or iOS device to deposit anywhere and anytime.
How Do I Make Withdrawals from My AcceleRate Financial Account?
All you need is to use the AcceleRate Flash® card given to you at any ACCULINK® / INTERAC® ATM or any credit union ATM in Canada.
How Can I Get in Touch With AcceleRate Financial Customer Service?
AcceleRate Financial has an excellent customer service team. You can reach them by calling 1-888-954-9543 or sending an email to info@AcceleRatefinancial.ca.
Finally, if you need further clarification or have questions about AcceleRate Financial, kindly let me know in the comment section.