Tag Archives: Savings Accounts

Royal Bank buys online savings bank Ally

Hello Canadian savers. It looks like Ally, the online bank offering Canadians the highest interest rate is no more. They’ve been bought out by one of the big 4 banks – Royal Bank of Canada. This is a disappointment for me and no doubt for many of you because all Ally High Interest Savings Accounts (HISA) will be closed on April 30, 2013.

I had an account with them so I guess now is the time to start researching another alternative. Once I find something suitable I will let you all know.

Happy investing.

Alan out.

Is Your Bank on the “100 Safest” List? Maybe You Should Find Out

Bank Vault

Close to Collapse: Bailed-Out Banks Facing Bankruptcy

By Elliott Wave International

We want to trust in the financial stability of our bank. After all, most of us have money in these institutions.

In spite of our wishful thinking, the tide of bank failures has not stopped. And these failures are occurring well after the heart of the financial crisis — and even after some of these banks received bailouts.

“Nearly 100 U.S. banks that got bailout funds from the federal government show signs they are in jeopardy of failing.

The total, based on an analysis of third-quarter financial results by The Wall Street Journal, is up from 86 in the second quarter, reflecting eroding capital levels, a pileup of bad loans and warnings from regulators.

The 98 banks in shaky condition got more than $4.2 billion in infusions from the Treasury Department under the Troubled Asset Relief Program.”

Wall Street Journal (12/26)

Seven of the 98 small banks mentioned have already failed.

In the U.S. so far this year, 157 banks have failed — that’s the highest number since 1992.

More failures are likely because many banks are burdened by questionable “assets” and bad real estate loans.

“…your money is only as safe as the bank’s loans. In boom times, banks become imprudent and lend to almost anyone. In busts, they can’t get much of that money back due to widespread defaults.

If the bank’s portfolio collapses in value, say, like those of the Savings & Loan institutions in the U.S. in the late 1980s and early 1990s, the bank is broke, and its depositors’ savings are gone.”

Conquer the Crash, 2nd edition, pp. 175-176

Yes, the Federal Deposit Insurance Corporation (FDIC) insures depositors, but the question is: Does the FDIC have the wherewithal to “make whole” all depositors if scores of banks go under at the same time? Here at Elliott Wave International, we do not recommend that you count on the FDIC. Here’s why:

“…did you know that most of the FDIC’s money comes from other banks? This funding scheme makes prudent banks pay to save the imprudent ones, imparting weak banks’ frailty to the strong ones.

When the FDIC rescues weak banks by charging healthier ones high ‘premiums,’ overall bank deposits are depleted, causing the net loan-to-deposit ratio to rise.

The result, in turn, means that in times of bank stress, it will take a progressively smaller percentage of depositors to cause unmanageable bank runs.”

Conquer the Crash, 2nd edition, p. 177

Are some banks safer than others? We think so.

“Hope is not a strategy.” If you plan to have money on deposit at a bank, we suggest reading our FREE report, Discover the Top 100 Safest U.S. Banks.” This 10-page bank safety report is available to you after you become a Club EWI member.Inside the revealing free report, you’ll discover:

  • The 100 Safest U.S. Banks (2 for each state)
  • Where your money goes after you make a deposit
  • How your fractional-reserve bank works
  • What risks you might be taking by relying on the FDIC’s guarantee

Please protect your money. Download the free 10-page “Safe Banks” report now.
Learn more about the “Safe Banks” report, and download it for free here.

This article was syndicated by Elliott Wave International and was originally published under the headline Is Your Bank on the “100 Safest” List? Maybe You Should Find Out. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Update on my Ally high interest savings account


Hi everyone. Just the other day a visitor that goes by the name of “DJ” left a comment on one of my posts regarding Ally’s high interest savings account, and in that comment he asked if I am still happy with Ally. I figured it would be nice to make a post letting you all know what I think of Ally thus far, so here it goes.

Well, I’ve been with them for over a year now and thus far I am glad to report that I haven’t had one single issue with both their services and their customer support. I haven’t had to get in touch with them often but when I did they helped me out in a courteous and prompt manner. But what makes it all better is the high interest my money has earned thus far.

So in conclusion I will be keeping my Canadian Dollars with them for the forseable future, and I also have no problems recommending that others do the same.

Thanks for visiting.



ICICI Bank Canada Tax-Free Savings Account

ICICI Bank Logo

Hello fellow Canadian savers and investors. You may be interested in knowing that ICICI Bank Canada – the bank that I recommend for high interest savings accounts – is now offering Tax-Free Savings Accounts (TFSA). If you don’t know what a TFSA is checkout this brief:

TFSA is a registered account introduced in response to new legislation from the Federal Government in the 2008 Budget. Investment income in the account will grow tax-free.

Now that you know the basics, let’s move on and get into some of the details of the ICICI Bank Canada TFSA.

ICICI Bank Canada TFSA Savings Account Details:

  • High Interest Rate: Earn 3.00% p.a. interest .
  • No Fees: Keep all of your money. There are no monthly or annual administration fees, so you can watch your money grow faster.
  • Flexible: No minimum balance.
  • Convenient Banking:You may do your banking online or by phone at your convenience
  • Safe and Secure: ICICI Bank Canada is a member of CDIC


  • Up to C$5,000 in year 2009. This amount may increase in the future to take inflation into account.
  • This C$5,000 limit is in addition to your RRSP contribution limit
  • Unused contribution room can be carried forward indefinitely


  • Withdrawal is not subject to income tax.
  • The amount withdrawn from a TFSA can be put back at a later date, without reducing your contribution room.

*The 3% interest rate is 50 basis points higher (0.50%) than what they offer on their regular high interest savings account – 2.50% (as of Jan 24, 2009 – subject to change)*

I for one believe that this new TFSA initiative launched by the Canadian Government is a good thig, and I commend them for implementing such a smart policy. Hopefully it will help to increase the personal savings rate of Canadians.

However, what I don’t like is that the deposit maximum is only $5000 per year.  Personally I would like to deposit more, but seeing as how there isn’t much I can do about this I’ll take what I’m given. In the future the maximum deposit will most likely be increased to compensate for inflation.

Now as for the bank itself, ICICI Bank Canada, I’ve been their customer ever since they launched on the Canadian financial scene, and so far I haven’t had any problems with them. The only negative point for some may be the fact that if you call their support line you’re goint to be speaking with an Indian support representative who may have bad English skills or a hard to understand accent. Keep in mind that ICICI Bank Canada is the Canadian branch of the second largest bank in India. So if you’re like me and you don’t call very often ICICI Bank Canada should suit you well.

To open a TFSA with ICICI Bank Canada (or to get more details) see the link below:


That’s all for now.