Best Peoples Trust Review for 2021

Peoples Trust Review Rating: 4.7/5

If you’re looking for high-interest savings, TFSA or GIC accounts, this Peoples Trust review is for you.

People Trust is one of the popular online banks offering high interest rates on registered and unregistered accounts.

While online banks offer high interest rates compared to traditional banks, there are things you need to know before opening an online bank account in Canada.

So depending on your needs, you may find one online bank more suitable than the other. This begs the question, is Peoples Trust right for you? What are Peoples Trust alternatives?

This Peoples Trust review answers these questions and more.

What is Peoples Trust?

People’s trust is a digital bank and a division of Peoples Group. Like other Canadian online banks, People Trust converts the costs of running a physical bank to high interest rates on its savings accounts.

In addition to high-interest savings and GICs account, Peoples Trust also offers commercial lending, mortgage, and payment cards services.

What makes Peoples Trust unique compared to other online banks in Canada lies in its zero maintenance and transaction fees.

However, Peoples Trust has limited features as you can’t use it to make ATM withdrawals or bills transfer.

As you continue reading this Peoples Trust review, you will learn more about what this online bank entails.

About Peoples Group

Peoples Group is a division of Triple Five Group that hosts People’s Trust. As a financial services company, Peoples Group has over CA$6.93 billion assets under management.

With its headquarters in Vancouver, BC, Peoples Group was established in 1985 as a trust company and a Peoples Bank of Canada subsidiary.

For more than 35 years, Peoples Group has been helping Canadians improve their finance through a selection of channels and partners.

Here are the major services that Peoples Group offers:

1. Deposit Services

Peoples Groups offers high-interest deposit services to Canadians through People’s Trust and Peoples Bank. This includes:

  • Savings accounts
  • TFSAs
  • RRSP
  • GICs

2. Retail Lending

Through Peoples Bank, Peoples Group provides retail lending services such as consumer loans, residential mortgages, advance on inheritances and other alternative financing options.

3. Payment Solutions & Card Services

Peoples Group offers custom solutions for fintech and top-notch services for Canadian merchants.

4. Commercial Mortgages, Services & Securitization

Finally, Peoples group provides commercial mortgages, services and securitization for CMH, commercial and construction projects.

Is Peoples Trust safe?

One of the major factors to look for before opening an online bank is security.

With the increasing number of online banks in Canada, you can’t afford to entrust your money and personal details to online fraudsters.

Fortunately, Peoples Trust is one of the safest online banks in Canada due to its membership with the Canada Deposit Insurance Corporation (CDIC).

Peoples Trust membership with CDIC means that your deposit will be protected up to $100,000 per insured category.

Furthermore, the Peoples Trust website is well-structured with advanced (256-bit SSL) encryption protecting outsiders from accessing your information on the site.

To ensure the up-to-date security of your personal information on its website, Peoples Trust upgrades its system regularly to keep up with the latest industry practices.

People’s Trust Pros and Cons

Like other online banks, Peoples Trust has pros and cons. Here’s a highlight:

Pros

  • Zero monthly maintenance fee
  • Zero transaction fees
  • High-interest rates
  • No minimum deposit requirements
  • Deposit protection 

Cons

  • Limited account options
  • No bills transfer
  • No ATM withdrawals
  • Longer hold periods

People’s Trust Accounts

In this part of our Peoples Trust review, we shall discuss Peoples Trust’s account options.

Peoples Trust offers two major accounts, savings and GIC accounts. To this, we now turn.

1. Peoples Trust Savings Account

People’s Trust Savings Account consists of e-savings and TFSA savings accounts.

The Peoples Trust e-Savings Account is high-interest savings account with no minimum deposit and monthly fees. Below are the keys features of the account:

  • High-interest rate (1.10%)
  • No minimum deposit

No monthly fees  

  • Interest calculated daily and paid monthly
  • CDIC protection

On the other hand, the Peoples Trust TFSA Savings Account is high-interest savings account without tax implications. Here are features of the account:

  • High-interest rate (1.10%)
  • Tax-free savings and income growth
  • Tax-free withdrawals
  • No fees
  • Interest calculated daily and paid monthly
  • CDIC protection

2. Peoples Trust GICs

If you’re looking for a guaranteed high interest rate on return from a 30-day to 5-years period, The Peoples Trust Guaranteed Investment Certificate (GIC) account could be ideal.

Peoples Trust offers three types of GIC accounts: non-registered and registered (TFSA and RRSP) GIC accounts which are non-redeemable before maturity.

Furthermore, Peoples Trust GICs have two durations: short-term and long-term durations.

The short-term durations consist of the following rates: 

Short Term:

DurationRate
Thirty Days1.00%
Sixty Days     1.00%
Ninety Days1.05%
One Hundred and Twenty Days 1.10%
One Hundred and Eighty Days 1.15%
Two Hundred and Seventy Days 1.15%

Source: Peoplestrust.com

On the other hand, the long-term durations consist of the following rates:

Long Term:

DurationRate
Fifteen Months 1.45%
One Year       1.45%
Two Years      1.50%
Three Years1.60%
Four Years1.90%
Five Years      2.00%

Source: Peoplestrust.com

Note: The above rates reflect the time of writing this review. According to Peoples Trust, it can change rates without notice. So ensure you visit the rates page of Peoples Trust regularly.

That said, all Peoples Trust GICs have the following features:

  • High rates
  • No fees
  • Compounded interest options
  • Minimum investment of $1,000
  • CDIC protection

Peoples Trust Mortgage and Lending Services

People’s Trust provides mortgage alternatives for brokers and residential lending services through Peoples Bank.

As of the time of writing this Peoples Trust review, the bank offers a 90 day close of 1.94% rate as a 5-year fixed rate.

Due to COVID-19, Peoples Trust currently offers flexible mortgage payment options and payment deferral for those directly impacted by the pandemic.

If you’re one of them, you should contact the People’s Trust team by phone at 877-462-3788 or email at CAP@paradigmquest.com.

Note: You can reach them only during their regular office hours (8 am + 8 pm EST Mon – Fri).

People’s Trust Review: My 5-Star Rating

Here’s how I arrived at the 4.7/5 star rating of this Peoples Trust review.

FeatureRating
Account Options****
Interest Rates****
Fees*****
Ease of Use**** (4.5)
Customer Support****

How to Open a People’s Trust Account?

At this stage of our People’s Trust review, we shall be discussing the process of opening a People’s Trust account.

Opening a People’s Trust account takes only a few minutes. However, you must meet the following requirements to initiate the application process:

  • Be a Canadian resident
  • Have a personal cheque
  • Have a valid social insurance number (SIN)
  • Reach the age of majority in your province

Are you good to go? Great! You can now follow the steps below to open a People’s Trust account:

  • Visit the sign-in page of Peoples Trust
  • Provide your details
  • Ignore the “No Reply Report” automated email and wait for an email from People’s Trust staff through DS_NewAccounts@peoplesgroup.com
  • Follow the instructions from the email to complete your registration. 

How Do I Close My People’s Trust Account?

Any time you feel like closing your Peoples Trust account, you can do so without a penalty.

To close your Peoples Trust account, you need to notify the bank by emailing them at deposits@peoplestrust.com.

Furthermore, you can ask Peoples Trust to close your account by sending mail to:

Peoples Trust Company

Suite 100

888 Dunsmuir Street

Vancouver, BC

V6C 3K4

Peoples Trust vs EQ Bank

In the recent article I published, People’s Trust was not among the best high-interest savings accounts I listed. The reason being that a high-interest rate is just one out of many factors that define the best online bank.

Thus, I shall be comparing Peoples Trust with EQ Bank at this stage of my Peoples Trust review.

What is EQ Bank? This is a digital bank established by Equitable Bank in 2016.

EQ Bank offers one of the high-interest interest rates on registered and unregistered accounts in Canada with no monthly maintenance fees and minimum balance requirements.

Here we shall discuss EQ Banks savings, TFSA, retirement savings plan, and GIC accounts.

EQ Bank Savings Plus Account

EQ Bank Savings Plus Account is one of the highest savings accounts in Canada, with an outstanding rate of 1.25%.

Additionally, EQ Bank Savings Plus Account is flexible as it combines savings and chequing accounts.

Here are the key features of EQ Bank Savings Plus Account:

  • High-interest rate (1.25%)
  • Zero transaction fees
  • Zero Monthly maintenance fees
  • No minimum balance requirement
  • CDIC Protection

EQ Bank Tax Free Savings Account

Like Peoples Trust TFSA savings account, EQ Bank Tax Free Savings account combines high-interest rates on savings with tax-advantage on income-earning and withdrawals.

EQ Bank Tax Free Savings Account also provides a high-interest rate of 1.25% on your savings.

That said, you can deposit up to $75,500 tax-free in 2021 if you’ve never contributed to a TFSA before.

Learn more about TFSA here.

Here are the key features of EQ Bank Tax Free Savings Account:

  • High-interest rate (1.25%)
  • No monthly fees
  • No withdrawal fees
  • Tax-free income growth and withdrawals
  • No minimum balance requirement
  • CDIC protection

EQ Bank Retirement Savings Plan (RSP)

If you’re concerned about your retirement days, you may want to consider the EQ Bank Retirement Savings Plan.

Like EQ Bank Savings Plus Account and TFSA account, EQ Bank Retirement Savings Plan provides a high-interest rate (1.25%) on your retirement savings with tax-advantage.

Like other retirement accounts, this account allows you to make tax-free contributions to your account until the age of 72.

Unlike a TFSA account, you will be taxed for making withdrawals on your contribution to your RSP account. 

Here are the key features of the EQ Bank RSP account:

  • High-interest rate (1.25%)
  • No monthly fees
  • Tax-advantage on contributions
  • Automated contributions
  • CDIC protection

EQ Bank Guaranteed Income Certificate (GIC)

If you’re committed to saving your money on a guaranteed income certificate for a particular duration, EQ Bank GIC has attractive offers.

Savings your money in a GIC account could yield you high earnings compared to a savings account.

From registered to unregistered GICs, EQ Bank GIC account offers varying interest rates on different GIC terms. Here are the key features of the account:

  • High-interest rates
  • No monthly maintenance fees
  • Automated updates

That said, the following are the rates of EQ Bank GICs as of the time of writing this Peoples Trust review:

Non-registered GICs

TermRate
Three Months1.50%
Six Months1.30%
Nine Months1.25%
One Year1.30%
Fifteen Months1.30%
Two Years1.30%
Twenty Seven Months1.30%
Three Years1.60%
Four Years1.85%
Five Years2.10%
Six Years2.00%
Seven Years2.10%
Ten Years2.40%

RSP GIC

TermRate
Three Months2.30%
Six Months1.80%
Nine Months1.65%
One Year1.50%
Fifteen Months1.30%
Two Years1.30%
Twenty Seven Months1.30%
Three Years1.60%
Four Years1.85%
Five Years2.10%
Six Years2.00%
Seven Years2.10%
Ten Years2.40%

TFSA GIC

TermRate
Three Months2.30%
Six Months1.80%
Nine Months1.65%
One Year1.50%
Fifteen Months1.30%
Two Years1.30%
Twenty Seven Months1.30%
Three Years1.60%
Four Years1.85%
Five Years2.10%
Six Years2.00%
Seven Years2.10%
Ten Years2.40%

Learn more about EQ Bank here.

Verdict on Peoples Trust Review

From the above discussion, you can see that Peoples Trust has unique but limited offerings compared to other online banks in Canada.

This means that you shouldn’t rush into opening a People’s Trust account without understanding its features and account types.

As you can see from the above Peoples Trust review, EQ Bank has high interest rates on savings accounts, TFSA, RSP, and GICs accounts.

While my Peoples Trust review is positive, I recommend EQ Bank over People’s Trust.

If you have any questions or concerns about this Peoples Trust review, let me know in the comment section.

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