Types of Motusbank deposits
- Registered Retirement Savings Plans (RRSPs). A Registered Retirement Savings Plan allows you to grow your savings and investment income on a tax-sheltered basis until you withdraw your funds. The contributions to your RRSP are tax-deductible, with the annual contribution limit of 18% of the income earned in the previous year, up to $27,830. In addition, for a limited time, RRSPs feature a bonus interest rate of 3.30%.
- Tax-Free Savings Accounts (TSFA). With a Tax-Free Savings Account, you can grow your savings or investment income tax-free. The withdrawals you make are also tax-free, although contributions are not tax-deductible. The maximum annual amount you can contribute to your TFSA is $6,000. In addition, TFSAs feature a bonus interest rate of 3.30% for a limited time.
- Guaranteed Investment Certificates (GICs). A Guaranteed Investment Certificate might be the right option if you are looking for a safe way to grow your money. GICs provide a guaranteed return on the funds deposited for a term from 30 days to 5 years. So the minimum investment you can start with is just $100. GICs are eligible investment securities for both registered (TFSA, RRSP) and non-registered plans.
Motusbank offers a variety of GICs, including long-term (1 to 5 years) and short-term (30 to 180 days) GICs, and escalator GICs. Most GICs from Motusbank are not cashable after the first 30 days. Escalator GICs are redeemable on each anniversary date.
The rates for long-term GICs range from 4.15% to 4.90%, depending on the term and the account type. The yields for Escalator GICs range from 4.60% to 4.86%, depending on the term and the account type. The rates for short-term GICs range from 0.95% to 1.25%, depending on the term and the account type. You can hold a GIC in either a registered or non-registered plan.
- Chequing accounts. Unlike many other banks, Motusbank charges no monthly fees and imposes no minimum balance requirements for its chequing accounts. So, Motusbank chequing accounts are available to anyone, regardless of budget constraints. With a chequing account, you also get unlimited transactions (debit purchases, bill payments, and withdrawals) and unlimited Interac e-Transfers. The additional perks are a 0.15% interest on all balances, 25 first cheques free of charge, and free access to the Price Drop feature allowing you to find better prices and claim a refund.
- Savings accounts. With a Motusbank savings account, you can earn 3.30% interest for a limited time. Once the promo period is over, you will get a 1.85% interest on your savings. Savings accounts involve zero monthly fees and no minimum balance requirements.
Requirements
To apply for a deposit product from Motusbank, you must be a Canadian resident in your province or territory of residence at the age of majority.
To verify your identity, you must upload either a valid Canadian driver’s license or a provincial or territorial photo ID card.
Pros and cons
Here are the definite advantages of Motusbank deposit products:
- Online account setup
- Insurance coverage of eligible deposits
- Competitive interest rates
- Free access to the Price Drop feature
- Access to surcharge-free ATMs
The disadvantages are:
- Additional charges like fees for international ATM transactions, record keeping, inactive account fees, and more
- Taxable contributions to a TFSA
- Taxable withdrawals from an RRSP
How to make a deposit?
You can deposit funds into your Motusbank accounts via online, mobile banking, and telephone banking, at designated ATMs, or by cheque (in an ATM or through the mobile app).
To move funds from your account in another Canadian financial institution to a Motusbank account, you can link these accounts using the Money Mover service from Motusbank.
