What is an HISA and Why Should You Have One?
Numbers and Math
My only focus is people but obviously a big part of my career surrounds numbers. All too often clients are confused and intimidated by numbers. That is understandable. Numbers and money are tough subjects to tackle on your own. Numbers can be confusing. Money can be deeply personal. You need a place to get honest advice and help.
HISA: What’s That?
Lately I have had more and more people ask me about an HISA – a High Interest Savings Account. On the surface that sounds like a place to put some of your money and earn high interest. It may appear a bit oxymoronic right now because the current “highest” rate for an HISA is 2.10%. But the numbers only tell part of the story.
Can You Bank On That?
You can go in to your local bank branch and open an HISA at their posted interest rate. You can then go online and move your money between bank accounts or you can do so at a bank machine. It sounds easy. It sounds safe. But is this your best opportunity to grow your money?
No it is not.
Another option is to open an account with ING because you like the guy on TV who is very convincing. After all, he says he’ll take care of your money and give you the highest interest rate. Are you sure you have the highest rate you can get? Not necessarily.
Today and Tomorrow vs. Long Term
So you do your homework and decide to pick the financial institution that posts the highest rate. That was easy, right? Not so fast.
If you open an account today, it may take a day or two before your money is moved and your account is activated.
What if that institution’s interest rate drops during that time?
The money you make on your account is whatever the current rate is, not what it was when you opened the account. Two days from now you may not be with the institution that has the highest posted rate.
How Can I Help?
While we are examining all of your options, imagine what would happen if you opened an account with me. I only work on a full disclosure model. You cannot make an educated decision unless you know all the opportunities available to you.
In the case of an HISA, we only use Canadian Deposit Insurance Corporation (CDIC) insured companies. The CDIC protects each of your accounts up to $100,000. This is your safeguard against any failure your financial institution may suffer. Your money is safe and you are able to hold several savings accounts within your account with us.
I shop for you, I watch your accounts for you and I look for the highest rate for your money. So we can move your money to whatever institution has the highest interest rate at any time.
It’s important to note that there are no fees for these accounts. And they can be opened for Business Accounts as well. Yes even your business account can earn interest.
I don’t have a cool accent; I can’t offer you fancy artwork in my branch but I will provide open honest and real advice so you can get the highest rate available for your High Interest Savings Account.
Your questions and thoughts are always welcome.