Say goodbye to high interest rates on savings accounts as lenders cut rates

An interest rate of 3.3 per cent may not seem like much to Canadians who remember the era when rates reached into the double digits. But when Laurentian Bank’s high-interest savings account (HISA) started paying 3.3 per cent in November after years of below-inflation returns on bank deposits, many took notice.

And as of early February, Canadians looking for a savings account paying more than two per cent had a number of additional options. Motive Financial, the digital subsidiary of Canadian Western Bank, for example, was offering 2.8 per cent. EQ Bank was paying 2.45 per cent. And Wealthsimple, a robo advisor, had recently announced its new Wealthsimple Cash account with an annual rate of 2.4 per cent.

The era of higher-paying savings accounts, however, proved surprisingly short.

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