First Home Savings Accounts (FHSAs) promise to make saving for your first home easier by letting you put away up to $40,000 tax free. And EQ Bank FHSA Savings Account promises to help you get there faster by letting you earn up to 1.5% interest on your balance. This stable interest rate is ideal for home buyers who are thinking in the short term.
But how does it compare to its competitors? And if you don't have an exact timeline yet to buy your first home, is it better to stick with this low-risk option or aim for even bigger gains with high-risk investment options? Let's take a look at all the features you can expect.
EQ Bank FHSA Savings Account features
Here’s what this account offers to help you meet your house-buying goals. Just note that you first have to open a regular EQ Bank Personal Account before you can proceed with getting the FHSA.
Why You Want It
Easily earn 1.5% on your first home savings + Benefit from tax deductions and tax-free growth.
Eligibility
- First-time home buyer
- Canadian resident (not in Quebec)
- 18 years or older
Provinces
AB, BC, MB, NB, NL, NS, NT, NU, ON, PE, SK, YT
GIC Rates
Non-Cashable
1 Year
3.05%
15 Months
3%
2 Years
3.15%
27 Months
3.15%
3 Years
3.3%
4 Years
3.4%
5 Years
3.45%
6 Years
2.35%
7 Years
2.35%
10 Years
2.35%
Savings
Any balance
1.5%
Features
Self-Directed Available
Self-Directed Platform
N/A
Self-Directed Base Fee
N/A
GICs Available
Types of GICs
- Non-Cashable
Mutual Funds Available
Average Mutual Fund MER
N/A
Investment PortfoliosAvailable
Investment Portfolio Fees
N/A
Savings Account Available
Minimum Savings Account Rate
1.5%
Maximum Savings Account Rate
1.5%
Promotion
N/A
Promotion End Date
N/A
EQ Bank FHSA Savings Account product rating: 3.8 stars
If you're looking to save for your new home in the short term, then this is one of your best options out there. It provides 1.5% interest on every dollar, has next-to-no risk at all, gives you the option to buy even higher rate GICs, and makes it easy to move funds to other EQ Bank accounts.
But if you're thinking for longer investment horizons, then there may be other FHSA options that allow you to invest in things like stocks, ETFs, and mutual funds in order to increase your potential return. That said, those all come with much higher risk as well, so it depends on your own needs which is really better.
Rating methodology
To calculate our Genius Ratings, we compare the features of the account or product in question with other similar products in Canada. We give each feature a score out of 5 based on that comparison. Once we’ve rated all the features, we run them through our proprietary algorithm to produce a final rating out of 5.
Learn more about our rating methodology.
The pros of the EQ Bank FHSA Savings Account
Here are some of the main strengths that this account has.
Pros
Earn 1.5% tax free interest on your balance
This account lets you earn 1.5% on every dollar, which is very competitive – especially compared to other big bank FHSA accounts.
Next-to-no risk investment
Because this is a savings account, your investments are extremely low risk, which makes it ideal if you're looking for a safe place to save for a home and save on taxes.
High-rate EQ Bank FHSA GICs also available
If you want to make your savings grow even faster, you can invest some of your savings in this account in a GIC. Once the GIC matures, it will be re-deposited into your FHSA.
The cons of the EQ Bank FHSA Savings Account
A few things to keep in mind before deciding to make this your FHSA account.
Cons
Not available in Quebec
As with so many personal finance products, contests, and goodies, this one is not available in Quebec.
No welcome offer
There are many FHSAs and savings accounts out there that provide either a cash welcome bonus, or a special interest rate for a limited time. This one does not. That said, its regular rate is higher than some special rates you may be offered.
You can’t hold any other investments besides GICs
Other than cash or GICs, you can’t hold any other investment vehicles in this account, such as stocks, bonds, or mutual funds.
FAQ
What is the EQ Bank FHSA Savings Account?
A First Home Savings Account (FHSA) is a savings account meant to help first-time home buyers save for their first home. EQ Bank’s FHSA Savings Account is EQ Bank’s version of it, and lets you earn up to 1.5% interest on your balance.
Can you transfer money from an FHSA account to the EQ Bank FHSA Savings Account?
Yes, you can transfer from one FHSA to EQ Bank’s FHSA without tax consequences, as long as it's a direct transfer. Doing so may incur handling fees.
Are you obligated to buy a home with the EQ Bank FHSA Savings Account?
Not necessarily. If you don’t use the money in your FHSA account within 15 years of opening it (or by the time you turn 71), you can transfer your cash tax-free to an RRSP or RRIF. You can also withdraw it as cash, but you’ll be taxed on the amount you withdraw in this case.
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
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