High-Interest Savings Accounts vs. Real Estate Investing?

Last September, we questioned if “High Interest” savings accounts still exist in Canada” and the answers were not great. Overall, from the major banks, the rate of 0.05% is pretty standard across the board with the exception of any temporary promotional period. Tangerine Bank, operating as Tangerine, a subsidiary of Scotiabank, seems to offer the highest standard rate at 0.15%.

Now that 2022 has kicked off, we thought we would revisit high-interest savings accounts from Canadian banks and compare that to the current rate of inflation, as well as some of the past addy real estate investment opportunities.

Saving In A Bank Account

We looked at three of the big banks to see if their rates had changed. Here is what we found on their website for their high-interest savings account offerings:

• RBC’s eSavings account offers an interest rate of 0.05%
• Scotiabank’s The MomentumPLUS Savings Account offers an interest rate of 0.05%
• TD High Interest Savings Account offers an interest rate of 0.00%

We did find an outlier with EQ Bank offering a bit better of a rate for saving your cash. EQ Bank’s Savings Plus Account offers an interest rate of 1.25%.

Canada’s Inflation Rate

According to Statistics Canada, Canada’s inflation rate stays at an 18-year high of 4.7% for the month of November 2021. Meaning that if you have your money sitting in cash in your “high interest” savings account you are essentially losing money due to inflation.

Real Estate Investing

Investing in real estate offers you the potential to protect and grow your money through diversified real estate holdings across Canada.  Investment opportunities brought onto the addy platform range in projected timeline, returns and location. Here are some of the past investment opportunities that have been available on the addy platform that can act as a way to protect and grow your wealth:

• Single Unit Commercial Building in Chilliwack, BC with Starbucks as a tenant (projected IRR 10.45%)
• Commercial Business Park in Calgary, AB (projected IRR 11.7%)
• 22 Unit Apartment Building in North Vancouver, BC (projected IRR 4.45%)
• 57 Unit Apartment Building in Kimberley, BC (projected IRR 13.5%)
• 3 Story Mixed-Use Commercial Building in Hamilton, ON (projected IRR 20.9%)
• Rental Mixed Use Development in Calgary, AB (projected IRR 11.2%)

Start Investing in Real Estate

Properties come onto the addy platform every month. Ahead of time, you’ll be able to review the details of the opportunity, read the Offering Memorandum, watch the videos  and then make an informed investment decision.  addy members can invest $1 – $1500 per property.  The latest opportunities are listed here.

Protect Against Inflation: