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The Coast Capital High Interest Savings Account is an ideal banking solution for individuals looking to gain significant interest on monies saved.
This popular savings account is ideal for storing your funds while earning a 1.60% interest. Unlike saving in traditional financial institutions, your funds are not locked, so you can access them. The account has no monthly fee but offers two free transactions, with additional transactions costing $5 each.
This article covers everything you need about this Coast Capital savings account. We look at its benefits, drawbacks, how to open an account, and more.
Features of the Coast Capital High Interest Savings Account
The Coast Capital High Interest Savings Account allows Canadians to earn interest on their savings. The account stands out for features like:
- Unlimited and free deposits and e-transfers on Coast Capital online and ATM platforms.
- An interest rate of 1.60% is determined based on the account balance at the end of each day. This interest is payable monthly.
- Limited free transactions since you only get two monthly. Additional transactions have a $5 fee.
- Zero monthly maintenance fees.
Pros of the Coast Capital High Interest Savings Account
This sought-after savings account offers several benefits to its holders. Here are the benefits:
Available Liquidity
Unlike traditional savings accounts in banks, which lock your savings, you can access your funds through this account. Moreover, you do not need to complete any paperwork to access the money.
No Minimum Deposits
The Coast Capital High Interest Savings Account has no minimum deposits to make you eligible for interest-rate earning. You also do not need to maintain a fixed monthly balance.
Daily Interest-Earning
The interest rate is calculated on a daily closing balance, allowing account holders to earn guaranteed interest. Moreover, account holders can enjoy a higher interest rate return compared to many other savings accounts.
Risk-free Investment
Coast Capital is a member of the CDIC (Canada Deposit Insurance Corporation). So, you can rest assured that your money is insured up to $100,000 even if the credit union is compromised.
Cons of the Coast Capital High Interest Savings Account
While Coast Capital High Interest Savings Account has several benefits for its holders, it also has drawbacks. Here are the disadvantages associated with this savings account:
Variable interest rates
Although Coast Capital’s High-Interest Savings Account is 1.60%, the rate can fluctuate or change.
Unsuitable for Daily Banking
Coast Capital offers two free monthly transactions with this savings account. the rest incur a $5 fee. These fees on additional transactions can rack up if you use the account for your daily transactions like grocery shopping.
Unsuitable for Long-Term Savings
While Coast Capital High-Interest Rate Account earns you a daily compound interest, it is not ideal for long-term savings. The savings can be influenced by high inflation rates, which can be higher than the interest rate earned.
Coast Capital High Interest Savings Account fees
When considering this savings account, it is wise to examine the costs or fees that come with it. The following is a rundown of the costs linked to this account.
- Monthly costs: The account has $0 monthly fees.
- Transaction fees: You get two free monthly transactions and $5 for additional transactions. Eligible transactions include pre-authorized payments, THE EXCHANGE Network and Coast Capital ATM withdrawals, bill payments, and Interac Direct Payment.
- Overdrawing on a non-overdraft protected account: Excess drawing on your savings account attracts a $5 plus 18% yearly interest.
- Cheques on the account: Writing a cheque on your Coast Capital High Interest Savings Account attracts a $10 processing fee.
- International POS transactions: Transactions on global POS systems attract a $5 plus 2% fee administration fee on the amount spent each.
- Phone transfers: Online transfers between chequing and savings accounts attract a $0 fee.
- E-transfer fees: sending e-transfers attracts a$1.50 fee each but receiving is free.
Other Coast Capital account options
Coast Capital only offers one savings banking solution. And maybe the Coast Capital High Interest Savings Account does not meet your financial needs. In that instance, you may have to look for a different financial services provider that offers a suitable savings solution.
That said, the bank offers several chequing accounts providing various financial solutions dependent on your needs.
How to Open the Coast Capital High Interest Savings Account
Opening this savings account is easy, and you can do it online. Just follow these easy steps:
- Ensure you meet the age of majority in your province of residence. Coast Capital is accepting new members from all the provinces except Quebec.
- Go to Coast Capital’s website or physical branch and complete a new member form. Here you must input your personal and contact information. This will include your employment details and SIN (Social Insurance Number).
- Submit your application, and Coast Capital will reply with an account status. If your account opening is successful, you can deposit funds and earn interest.
Also, new members must buy membership equity shares worth $5. This amount is usually deducted from your first deposit and is refundable if you leave the credit union.
Coast Capital High Interest Savings Account conclusion
The Coast Capital High Interest Savings Account is a banking solution for Canadians who want to save their funds and earn interest. You can access the funds whenever needed, making it an ideal savings solution.
While the account has no monthly maintenance fees, you only get two free transactions, with additional transactions costing $5 each. So, deciding if this account suits your financial needs is wise.
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