Saven Financial Review 2024: Is It Worth It?

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Saven Financial Review Rating: 4.0/5

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Since the emergence of the first credit union in 1900 in Québec, Canadians have witnessed a rapid increase in credit unions up to 231. The reasons are so obvious.

Besides having competitive interest rates and low fees, credit unions have better customer service than most traditional banks in Canada.

Despite being a newcomer, Saven has redefined credit union service in Canada with its competitive interest rates on savings and GICs accounts.

But if you’re looking to open a Saven account, it’s important to understand the pros and cons of doing so.

This Saven Financial review covers everything you need to know about the credit union so as to make an informed decision.

What is Saven Financial?

The following is a quick overview of Saven Financial’s profile to ease your understanding of this review. 

Let’s now take a detailed view of Saven Financial.

What is Saven Financial?

Saven Financial is an online-only digital bank of FirstOntario Credit Union founded in January 2021.

The bank currently offers high-interest savings and GIC accounts with competitive interest rates. However, its 4.20% interest on high-interest savings, TFSA accounts and FHSAs make it more popular and competitive than other online credit unions in Canada.

Operating only in Ontario, Saven doesn’t have monthly fees, deposit and withdrawal fees. In addition to its competitive interest rate, you can make the most of your money on Saven.

Deposits on the bank are covered up to $250,000 by the Financial Services Regulatory Authority of Ontario (FSRA).

With this and lots of other benefits, it’s easy to see why Saven is worth considering among other online banks in Canada.

How Does Saven Financial Work?

Saven works like other online banks out there with the only difference of having competitive interest on savings and GICs accounts.

Accordingly, Saven requires you to register as a credit union member to enjoy its financial products and services.

This means paying a $25 membership fee while signing up. But you don’t need to pay this fee if you’re already a FirstOntario shareholder.

In addition to enjoying competitive interest rates on savings and GICs accounts, becoming a Saven member means that you’re automatically a FirstOntario shareholder.

As a result, you can participate in FirstOntario decision-making, become a Board of Directors member and elect the Board of Directors.

The most interesting part is that you will be receiving annual dividends as a FirstOntario shareholder.

Who Owns Saven Financial?

Saven Financial is owned by FirstOntario Credit Union. As you might know, FirstOntario Credit Union is one of Ontario’s leading credit unions based on its over $5.7 billion assets under management as of 2021.

Formerly known as Stelco Employees Credit Union when it started in 1939, it changed its name to Avestel and Family Savings & Credit Union in 1987. In 2000, it rebranded to FirstOntario Credit Union.

Since then, the credit union has merged with top institutions such as  Prime Financial, Canal City Savings and Credit Union and Rochdale Credit Union.

With more than 126,000 members, FirstOntario Credit Union offers a broad range of financial solutions, ranging from:

• Savings accounts
• Chequing
• Business services
• Loans
• Mortgages
• Investment advice

As a member of Saven, you are automatically a shareholder of FirstOntario Credit Union. This means you can:

• Determine the operation of FirstOntario
• Receive annual dividends
• Become a member of the FirstOntario Board of Directors
• Vote for FirstOntario Board of Directors

Is Saven Financial Safe?

As of the time of writing this review, I can confirm that Saven Financial is safe. The bank protects your personal information on its website with advanced encryption.

As per your deposit, you have nothing to worry about because the Financial Services Regulatory Authority of Ontario (FSRA) covers individual Saven account deposits up to $250,000.

The fact that Saven is owned by one of Ontario’s largest credit unions should give you peace of mind knowing that you’re dealing with a reputable and regulated credit union.

Is Saven Financial Legitimate?

Yes, Saven Financial is legitimate in the full sense of the term. Besides being insured and regulated by the Financial Services Regulatory Authority of Ontario (FSRA), Saven also offers legit financial products.

As a division of FirstOntario Credit Union, Saven complies with all provincial and federal laws that govern how a credit union should operate in Canada.

With no regulatory issues since its inception, Saven is one of the legit online banks in Canada.

Saven Financial Products

Let’s take a detailed view of the current products of Saven Financial.

1. Saven Financial High-Interest Savings Account

This is a high-interest savings account (HISA) with a competitive rate of 3.50%. With this rate, Saven has distinguished itself among other online banks in Canada.

With no minimum deposit, you can enjoy the same 4.20% on every amount you save on your Saven account.

The interest rate is calculated daily and disbursed monthly up to the end of the savings term.

The interesting part is that the Saven high-interest savings account doesn’t have deposit or withdrawal fees. This helps you save and earn more in your savings account.

That said, Saven’s savings account interest rates are subject to change at any time. To earn a guaranteed return, you may want to consider the Saven GIC account.

Update: Recently Saven Financial launches its TFSA savings account which offers 4.20% interest. The TFSA account doesn’t have monthly fees and minimum balance requirements. It has also launched a FHSA account that also offers a 4.20% rate.

RECOMMENDED: Read our Tangerine High-Interest Savings Account review to learn about it compares with Saven’s savings account.

2. Saven Financial Guaranteed Investment Certificate (GIC)

Saven guaranteed investment certificate account (GIC) works like other GICs out there. That’s locking your money for a fixed period to earn a guaranteed interest. This is ideal if you’re looking to avoid interest fluctuations while saving.

That said, the minimum amount you can invest in a Saven GIC is $1,000 with flexible terms ranging from 1 year to 5 years.

The following are Saven’s GIC terms with their competitive rates as of April 8, 2024:

Term	Rate
1-year	5.40%
2-year	5.30%
3-year	4.90%
4-year	4.80%
5-year	4.70%

The interesting thing is that you can reinvest your fund when the term ends to enjoy the same competitive rate.

Like the Saven HISA, deposits on Saven GICs are insured for up to $250,000 by the Financial Services Regulatory Authority of Ontario (FSRA).

Moreover, the Saven GIC rates can also change at any time.

Saven Financial TFSA GIC Rates

With the recent launched of TFSAs, Saven Financial now offers TFSA GIC accounts at the moment. Below are the current Saven Financial TFSA GIC rates.

Term	Rate
1-year	5.40%
2-year	5.30%
3-year	4.90%
4-year	4.80%
5-year	4.70%

Update: The above TFSA GIC rates also apply to the newly launched Saven FHSA GIC account.

Saven Financial Rates

From the above discussion, you can see that Saven Financial has only HISA and GIC rates. This is because the online bank offers only HiSA and GICs.

The following is a highlight of the Saven HISA and GIC rates:

Saven HISA & TFSA Rates

Saven Financial’s HISA and TFSA accounts offer a 4.20% interest rate which are among the highest in Canada.

The rates outshine those of most online banks in Canada including Tangerine, EQ Bank and Simplii Financial.

Saven Financial GIC Rates

Below are the Saven Financial GIC rates that also compete with those of other online banks in Canada.

Term	Rate
1-year	5.40%
2-year	5.30%
3-year	4.90%
4-year	4.80%
5-year	4.70%

Saven Financial Fees

Saven sets itself apart by offering low-cost financial solutions. It doesn’t charge monthly fees and transaction fees on:

• Interac e-Transfer
• Electronic funds transfer (EFT)
• Cheque deposit

However, Saven charges its members the following fees:

• Overdraft = 21%
• Non-Sufficient Funds (NFS) = $50 per item
• Handling of Non-Sufficient Funds (NFS) = $10

As you can see, all these fees are avoidable. This means you can use a Saven account without paying any fee.

Saven Pros and Cons

Each online bank has its advantages and disadvantages. The following are the pros and cons of Saven you need to consider before signing up:

Pros

High-interest rates: With 4.20% interest on HISA, TFSA and FHSA account and up to 5.40% interest on GIC accounts, Saven sets itself apart from other online banks in Canada.
Competitive fees: Enjoy competitive interest on Saven savings, TFSA, FHSA, and GICs accounts without worrying about monthly fees, deposits and withdrawal fees.
Deposit protection: The Financial Services Regulatory Authority of Ontario (FSRA) covers individual Saven account deposits up to $250,000.
Easy to access: Opening a Saven account only takes a minute and you can operate your account anywhere, anytime, online or through the Saven mobile app.

Cons

Fewer products and accounts: Saven currently offers only savings, TFSAs, FHSA and GICs accounts. If you’re looking for a credit union with multiple banking solutions, you have to look elsewhere.
Limited accessibility: Only Ontario residents can use Saven at the moment. This limits the credit union’s accessibility to millions of Canadians.
Fees: While Saven doesn’t charge monthly fees, it charges Non-Sufficient Funds fees and a $25 membership fee. You can do without these fees with an online bank.
Poor accessibility: Some customers are complaining of difficulty in accessing their accounts on Saven website and mobile app.

Eligibility For Saven Financial

As mentioned previously, only Ontario residents can use Saven at the moment.

But even as an Ontario resident, you need to meet the following requirements to open a Saven account:

• Be 18 years or older
• Ready to pay a $25 membership fee (no need if you’re already a FirstOntario shareholder)
• Have a valid Social Insurance Number (SIN) and mobile number

How to Open Saven Financial Account

Once you meet the above eligibility, you can proceed to open a Saven account within minutes.

The following are the processes for opening a new Saven account:

• Visit the sign-up page using your smartphone or desktop
• Enter your email address and phone number
• Create a password
• Enter your personal information (name, address, SIN etc.)
• Verify your account

Once Saven approves your application, you will become a member of Saven and a shareholder of FirstOntario Credit Union.

To start a transaction you would need to link your existing bank account to Saven.

Saven Financial Mobile App

Saven Financial has a mobile app available on Google Playstore and App Store. This makes it more accessible than a traditional brick-and-mortar credit union.

That said, the mobile app allows you to make a maximum of $25,000 cheque deposits at once.

However, there are many complains online about the malfunctioning of the Saven Financial mobile app. I can’t confirm if the problem has been addressed.

My Saven Financial Review Rating

I rate Saven 4.0 out of 5 stars based on comparative analysis and the total rating of the following features.

This makes my Saven Financial review positive and recommendable to Canadians looking for competitive interest in savings and GICs accounts.

Saven Financial vs EQ Bank: Which is Better?

The following is an overview of the key similarities and differences between Saven and EQ Bank.

Key Feature	Saven Financial	EQ Bank
Products	GIC, FHSA, TFSA and high-interest savings accounts	GICs, high-interest savings accounts, USD accounts, FHSA, TFSA and RSP accounts and a prepaid card
Interest in a savings account	4.20%	4.00%
1-year GIC rate	5.40%	5.35%
Registered accounts	None	Yes
Savings account minimum balance	$0	$0
Monthly fees	None	None
Transaction fees	$0	$0
Deposit protection	Yes (by FSRA)	Yes (by CDIC)
Accessibility	Ontario	All parts of Canada

If you’re uncomfortable with paying $25 to be a Saven member, EQ Bank is a top alternative that offers much more of the same products as Saven with no fee.

As a division of Equitable Bank, EQ Bank also offers high-interest savings accounts and GIC accounts like Saven. But EQ Bank also offers a US dollar account, TFSA, FHSA, and RSP accounts.

As shown in the above table, Saven Financial outshines EQ Bank on savings rates.

No doubt, EQ Bank has competitive GIC rates with multiple terms from 3 months up to 10 years. Usually, the longer the GIC term the longer your earnings.

Unlike Saven that’s only available in Ontario, EQ Bank is available across all parts of Canada including Québec.

Overall, you can’t make the wrong decision with either Saven or EQ Bank depending on your needs.

Update: EQ Bank recently released a prepaid Mastercard to give its customers a physical touch. You can learn about the EQ Bank card under the attached link.

The Bottom Line

Saven is on top of its offerings and you can’t make the wrong decision with it so far it suits your needs.

Whether you’re going with Saven or its alternative, it’s important to make the best decision.

The most important factors to consider when choosing the perfect financial institution are products, interest rates, fees, and accessibility.

If you need more help choosing the perfect financial institution for your needs, please let me know in the comment below.

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• Read our Oaken Financial Review to learn how it compares to Saven Financial.
• Learn about how to choose the best online bank in Canada such as Saven Financial
• Check our compilation of the full list of banks in Canada
• Learn about Tangerine Credit Card Promotions

FAQs on Saven Financial Review

Is Saven a credit union?

No! Saven Financial is an online bank of FirstOntario Credit Union.

Does Saven have TFSA?

Yes. Saven Financial recently lauched a TFSA account that offers a high interest of 4.20% with no minimum balance and monthly fees.

What is the interest rate on a Saven savings account?

The current interest rate on Saven Financial HISA, TFSA and FHSA savings accounts is 4.20%. This is one of high savings rates in Canada.

How long has Saven financial been around?

Saven Financial was recently launched 2021 but it’s already completing with some of the oldest online banks in Canada including EQ Bank and Tangerine..

Is Saven Financial insured?

Yes, deposits on Saven are insured by the Financial Services Regulatory Authority of Ontario (FSRA) for up to $250,000.

Is Saven Financial insured with CDIC?

Saven is not insured with the CDIC. Instead, it is insured by the Financial Services Regulatory Authority of Ontario (FSRA).

When was Saven Financial founded?

Saven Financial was founded in January 2021 by the FirstOntario Credit Union.

Is Saven Financial reliable?

Absolutely. Saven is reliable per the products it offers. You can’t make the wrong decision with its high-interest savings account and GIC accounts

Which is better Saven Financial or EQ Bank?

Saven Financial is better if you’re looking for a low-cost online credit union with competitive savings and GIC rates in Canada.

On the other hand, EQ Bank is better if you’re looking for the best online bank in Canada with competitive rates on savings, GICs, TFSA, RSP and US dollar accounts.