Tangerine High-Interest Savings Account Review 2024: Get 5.75% Interest
Tangible High-Interest Savings Account Review Rating: 3.8/5
Many Canadians today are gradually shifting towards online banks because of the low transaction costs and high interest offered on all savings and investment accounts.
Most online banks also don’t charge a monthly fee or require any minimum balance for savings accounts and this is such a big deal, especially for low-income earners.
In this article, I will be discussing the high-interest savings accounts offered by Tangerine bank — a reputable online bank in Canada with millions of customers and over $40 billion in assets under management.
By the end of this article, you would know the benefits and drawbacks of signing up for a Tangerine High-Interest Savings Account (HISA).
Moreso, you will learn how Tangerine HISA compares with other high-interest savings accounts in Canada.
About Tangerine Bank
Tangerine is a fast-growing online bank in Canada that is frequently rated among the top digital banks in Canada.
Tangerine operates mainly in Canada as a direct subsidiary of Scotiabank – one of Canadian five big banks by market capitalization.
The history of Tangerine Bank dates back to April 1997 when it was initially founded by the ING Group.
From its inception, Tangerine was known as ING Bank of Canada and it operated officially as ING Direct.
However, the bank was acquired by Scotiabank in November 2012. The name “Tangerine” was then revealed in 2013 but the official branding was rolled out in April 2014.
Even though Tangerine is completely owned by Scotiabank today, it operates as a “separate” legal entity with its own institution Number (614).
As of 2022, Tangerine bank boasts of having more than 2 million customers and over $40 billion in total assets.
In addition to competitive personal loans, lines of credit, credit cards, mortgages, GICs, and chequing accounts, Tangerine also offers high-interest savings accounts, making it one of the best online banks in Canada.
In the following section, you’re going to see a detailed overview of the different types of high-interest savings accounts offered by Tangerine bank.
Best Tangerine High-Interest Savings Accounts Review
There are currently five types of high-interest savings accounts offered by Tangerine bank. These accounts have similar interest rates with different customer targets.
Let’s take a look at each of the Tangerine High-Interest Savings Accounts (HISAs) below.
Tangerine Savings Account
This is a traditional savings account type which is designed to suit the general savings needs of everyone.
The main features of this account type are listed below.
- 0.70% interest rate on your savings
- No minimum required balance
- Zero monthly fees
- No service charges or any form of unfair fees
- Money can be moved into this account automatically with the Tangerine ASP (Automatic Savings Program)
Tangerine Tax-Free Savings Account
If you are looking to save money without paying taxes, the Tangerine Tax-Free Savings Account might be right for you.
With the Tangerine TFSA savings account, you’ll not be taxed on your deposit, earnings or withdrawals so long as you stay within your contribution limits. This is the case with all TFSA accounts in Canada.
In addition, the Tangerine TFSA savings account doesn’t require any minimum balance or monthly fees.
All Tangerine Tax-Free Savings Account holders enjoy the benefits of the Tangerine regular savings account without paying taxes.
That’s, you will also earn 1% interest on your Tangerine TFSA savings account without worrying about taxes or monthly fees.
Also, Tangerine allows customers to move money in and out of a Tax-Free savings account at any time. You are never really locked in at any point in time.
Tangerine RSP Savings Account
This is a Retirement Savings Plan (RSP) account offered by Tangerine Bank. It is designed to suit the needs of anyone looking to save money for retirement.
The Tangerine RSP Savings Account also comes with tax shelter and no minimum balance requirement.
Below are some of the key features of the Tangerine RSP Savings account type.
- 0.70% interest rate
- Zero monthly fee
- Tax shelter on contributions and earned interest until withdrawal
- Income can be split with a Spousal RSP
Tangerine RIF Savings Account
This is the Retirement Income fund (RIF) account type offered by Tangerine bank.
Tangerine RIF Savings Account is designed for those looking to withdraw their retirement income while enjoying the benefits of a Tangerine Savings account.
As with other RIF accounts, there is a tax shelter on interests earned in a Tangerine RIF Savings Account. You only get to pay income taxes on your annual RIF minimum payment amount.
Here are the main features of the Tangerine RIF Savings Account.
- 0.75% interest rate
- No minimum balance required
- No monthly fee or services charge
- You can make withdrawals beyond the RIF minimum payment limit (income tax and government withholding tax apply)
Tangerine US Dollar Savings Account
If you earn in US dollars or have an inflow of US dollars that you would like to save while in Canada, the Tangerine US Dollar Savings account gets you covered.
Below are some of the key features of the Tangerine US Dollar Savings account.
- 0.10% interest rate
- No minimum required balance
- No service charges or unfair fees
- Competitive exchange rate
Tangerine Children Savings Account
This account is tailored to parents or guardians looking to teach their children how to save.
With this account, children are assigned a separate client number that they can use to log in to Tangerine and view previous transactions.
The key features of this account are highlighted below:
- 0.80% interest
- No monthly fee
- No minimum balance
One of the limitations of this account is that it doesn’t offer access to Tangerine savings Promotions. As such, we can’t classify it among the ideal high-interest savings accounts of Tangerine.
Tangerine Savings Account Promotion
One thing that makes Tangerine more popular in Canada is its competitive promotions.
Tangerine provides generous promotions on most of its financial products ranging from credit cards, chequing accounts and savings accounts.
Currently, Tangerine offers a mind-blowing promotional interest of 5.75% for new savings account holders.
In addition, the bank offers up to $250 bonus if you switch your payroll to a Tangerine chequing account.
Below are the terms and conditions that apply to the 5.75% Tangerine promotional savings rate.
- You only get a 5.75% interest rate on funds deposited within the first 153 days (5 months) after opening a Tangerine Savings account.
- The promotional rate only applies to a maximum of $1,000,000 deposit
- The savings promo applies to only Tangerine’s regular savings account, TFSA savings account, RSP savings account, RIF savings account and USD savings account.
READ ALSO:
- Learn about Tangerine Credit Card Promotions
- Learn about Tangerine e-Transfer Limit
- Learn about Tangerine Mortgage Preapproval Alternatives
Tangerine Savings Account Fees
Even though Tangerine doesn’t charge monthly fees on all its savings accounts, it charges administration and transaction fees to sustain itself in business.
The following are the Tangerine non-registered savings account fees.
| Service | Fee |
| NSF (Non-sufficient funds) | $45 |
| Registered account transfer to another institution (TFSA, RRSP and RIF) | $50 |
| 2–9-year dormancy fee on taxable Personal and business savings accounts | $20/year |
| 10-year dormancy fee on taxable personal and business savings accounts | $40 |
| Paper statement fee | $2/statement issued |
| Paper statement and tax slip/receipt reprint fee | $5/reprint |
Is Tangerine Safe?
Absolutely. All the services and products offered by Tangerine Bank are safe as per common practices
Deposits made to Tangerine accounts are protected by CDIC (Canadian Deposit Insurance Corporation) for up to $100,000 per account.
Tangerine also employs the best security practices in protecting its customers from fraudsters and hackers.
As a subsidiary of Scotiabank – a Canadian big bank with 25 million customers and $1.18 trillion worth of assets under management, Tangerine is backed by a reputable body.
Drawbacks of Tangerine Savings Account
Although Tangerine has one of the highest promotional savings rates in Canada, its current regular interest rate (0.70% – 0.80%) is relatively low compared to those of other Canadian online banks.
Promotional rates are temporary as they can only earn you more within a short period. The regular rate dictates your long-term earning potential.
Besides, Tangerine’s promotional savings rate only applies to new clients and selected savings accounts.
My Tangerine High-Interest Savings Account Review Rating
I rate Tangerine High-Interest Savings Account 3.8 out of 5 stars based on comparative analysis and the in-depth review of the following features:
Tangerine High-Interest Savings Account Review
Overall Rating
With this, I can’t recommend Tangerine to Canadians looking for a high-interest savings account for long-term earning.
How to Open a Tangerine High-Interest Savings Account
To open a Tangerine High-Interest Savings Account, you must first have the following documents and information handy.
- A valid government-issued ID
- Social Insurance Number
- Employment details
- Email address
- Phone number
- Orange Key/promo code (optional)
Are you good to go? Great. You can now visit the application page using this link. Once there, click the “Get Started” button and follow the prompts to open your Tangerine HISA.
Tangerine Savings Account vs EQ Bank Savings Accounts
| Features | Tangerine Savings Accounts | EQ Bank Savings Accounts |
| Regular savings rate | 0.70-0.80% | 4.00% |
| Promotional savings rate | 5.75% | None |
| Monthly fees | None | None |
| Minimum balance | None | None |
| Deposit protection | CDIC | CDIC |
EQ Bank is not a stranger to the online banking industry of Canada.
In fact, EQ Bank is more popular than Tangerine when it comes to interest on savings accounts.
While EQ Bank doesn’t have promotional interest, it is ahead of Tangerine in terms of regular interest rates.
Like Tangerine, EQ Bank savings accounts don’t charge monthly fees nor require a minimum balance.
Tangerine Savings Account vs Neo Financial Savings Account
| Features | Tangerine Savings Accounts | Neo Financial Savings Accounts |
| Regular savings rate | 0.70-0.80% | 4.00% |
| Promotional savings rate | 5.75% | None |
| Monthly fees | None | None |
| Minimum balance | None | None |
| Deposit protection | CDIC | CDIC |
Neo Financial is another popular online-only bank in Canada that’s famous for its competitive interest and cashback rates.
Just like EQ Bank, the Neo Financial Savings Account offers a higher interest rate than Tangerine savings accounts.
Other savings accounts that compete with Tangerine savings accounts, EQ Bank and Neo Financial include:
| Savings Account | Interest | Learn more |
| Motive Savvy Savings Account | 4.10% | Motive Financial Review |
| Saven Financial High-interest Savings Account | 4.20% | Saven Financial Review |
| Achieva’s Daily Interest Savings Account | 3.60% | Achieva Financial Review |
| Peoples Trust’s e-Savings Account | 3.40% | People Trust Review |
READ ALSO:
- Learn about BMO High-Interest Savings Account Review
- Learn about the Best Joint Bank Accounts in Canada
Verdict on Tangerine High Interest Savings Account Review
The promotional interest rate of 5.75% is highly tempting to potential and existing savings account users.
But since the promotional rate expires in five months and drops to the regular rate of 0.70%-0.80%, there’s a big reason to think twice before opening a Tangerine savings account.
As a result, I recommend Tangerine HISA only for those looking for short-term gains.
If you’re looking for long-term earnings, you should consider the above alternatives discussed.
Tangerine High-Interest Savings Account Review
Summary
Tangerine is ideal for short-term savings. But I can’t recommend Tangerine to Canadians looking for a high-interest savings account for long-term earning.
