Make Your Savings Account More than a Place to Keep Your Money

Savings accounts are useful, in that you need to keep your money somewhere and you can’t just sew cash into your mattress. But while savings accounts have always kept your money safe, they haven’t paid much out lately. Most savings accounts provide you less than 0.5% interest, meaning that even if you kept your money in the bank for 50 years, it would grow so slowly during this time that it wouldn’t outpace inflation, leaving you poorer for having saved. I’m always going on about how important it is to have an emergency savings account. But how can I justify putting lots of money into a savings account when those funds are just losing buying power? Thinking about it this way, some people might think it’d be better to just invest and not “save” at all. But, then, investments are inherently riskyand you may not be able to access them quickly when you really need them. What is a saver to do?

Enter Scotiabank’s Momentum Savings Account. Scotiabank understands that if you are going to be saving up large amounts of money – money that you want to remain liquid in the case of an emergency or short-term savings – then you really need to see some meaningful returns for these funds. In this pursuit, the Momentum Savings Account offers up to 1.5% annual returns,and for a limited time up to 2%. That’s a higher rate than just about any other savings account I am aware of. There are stipulations though – you won’t necessarily get the full interest rate all at once. But it’s not hard to get it all. Here’s how.

The Momentum Savings Account starts with a .75% interest rateon balances of $5,000 or more. This rate doubles if you make no withdrawals for the first 90 days your account is open. Those who sign up with the minimum balance before June 15, 2015 get an automatic .5% added to their interest rate until July 31, 2015. That’s 2% total, which is better than you’ll see almost anywhere. You can make it easier for yourself by simply depositing $5,000 or more into your Momentum Savings Account, in which case you’ll be given the full interest rate automatically without having to jump through any hoops at all. Scotiabank is a Canadian bank, so this deal only applies to denizens of the great white north. But it’s something that Americans and other non-Canadians should look for from their own banks.

The miserable interest returns of the average savings account have always been my least favorite thing about emergency savings funds. In every other way, they perform really well, leaving you a lot of freedom from worry. Emergency funds keep you from having to go into debt to cover sudden expenses, like hospital stays, breakdowns, or household repairs. But it’s a hard pill to swallow for personal financiers committed to always extracting the best possible returns from the places where they put their money. In this way, the Momentum Savings Account from Scotiabank puts some salve on the last little pinprick I had about emergency savings. The Scotiabank Momentum Savings Account helps your money preserve buying power and ensuresthat the wealth you save is wealth you keep.