daily interest savings accounts | Financial Crooks

Well, as I said in earlier articles, I applied to open a savings account at Zag Bank for their temporary 2.5% interest rate and then at EQ Bank for their 3% for-a-while interest rate. I’m not actually able to use the accounts yet, though, and I’m starting to wonder exactly how long it will take to open my accounts at Zag and EQ Banks.

What’s Happened With My Application to Zag Bank?

OK, I’ll admit that part of the delay with Zag Bank was self-inflicted. Because I did not receive an email telling me how I could deposit my first cheque using their app, I decided to mail in my first deposit cheque. Unfortunately, I made a fatal error: I made the cheque payable to myself, not to Zag Bank. (I didn’t read their instructions carefully enough.)

I applied to open the account on January 12 and mailed the cheque on January 13.

On Friday January 22 I received an email saying they had not received my cheque and giving me a link to use their app to make a photo cheque deposit. It said if I had mailed a cheque to ignore the message, which I did, although it had been 7 business days already.

On Tuesday January 26, Zag phoned me in the evening. They explained how I had not sent in a cheque they could use so I would have to start over again.

On Thursday January 28, I called them back to ask for more information, specifically:

What were they going to do with the cheque I sent in payable to myself?

If they were mailing it back to me, I would wait, correct and initial it, and send it back in.

Well first they said they don’t return the cheque unless I specifically request that. Second they said they wouldn’t accept a corrected cheque anyway. Bizarre! I’ve never had a problem with fixing and initialing a cheque with any other bank. Third they said they weren’t even sure if my cheque had already been shredded or not, although they were sure images of the cheque would be available if the cheque had been destroyed.

So I asked if they would keep the cheque and deposit it in my account once the account was properly activated by sending in a second cheque properly made payable to Zag Bank. Nope. They wouldn’t do that, even though the cheque sent in was payable to me.

Sigh.

So I used their app and the photo cheque deposit feature to submit a new cheque on Thursday January 28.

It has not cleared my bank account as of February 2. Nor as of February 19.

UPDATE 2016 02 19: Something is seriously wrong with my deposit to Zag Bank. They have no record of the cheque images so they cannot deposit the cheque. But I cannot use the App to send in new photos because it says I have already submitted the photos. For now, I believe this account will never be opened.

What’s Happened With My Application to EQ Bank?

I sent my first deposit cheque to EQ Bank using their photo cheque app. I sent it in on Monday January 25.

On Friday, January 29, I received an email from EQ Bank advising me that due to the huge demand from new customers processing of new accounts was slower than expected.

Then, on Tuesday, February 2, the cheque cleared my bank account. In theory that means in 5 business days, the time they need to be sure the cheque is fully cleared by my bank, they will complete opening my account. So early next week I should be able to tell you what happens when I try to deposit or transfer more money into the account.

UPDATE: On 2016 02 10, I received an email from EQ Bank saying my account is now fully active. I signed in, set up my security questions, and I’m now successfully using the account.

Which Bank Is Easier to Set Up a New Savings Account At: Zag or EQ?

Overall, my impression of EQ Bank is more favourable than my impression of Zag Bank but that’s possibly coloured by my own stupidity in sending in the wrong cheque to Zag. I did like that EQ Bank wrote to advise customers of a possible delay. Anyway, time will tell if either bank is significantly different than each other.

UPDATE: 2016 02 19 So far EQ Bank is way, way superior. It’s set up and I’m using it in various ways. I still have not got an account at Zag Bank because the images of my cheque for deposit did not arrive successfully at Zag and they don’t seem to have any way for me to send new images.

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Did you recently open an account at Zag and/or EQ Bank? How did the process go for you? Please share your views with a comment.

NOTE: As of December 2016, EQ Bank had reduced its interest rate to 2%. Please check the EQ Bank website for their current interest rate.

OK, so having just started opening an account at Zag Bank to get 2.5% interest for a few months, I’m now changing direction and opening a daily interest savings account at EQ Bank after I checked it out a bit to get 3 percent interest indefinitely, although I’m sure it won’t last the entire year.

NOTE: Unlike some lucky (?) financial writers I am getting absolutely nothing from Zag Bank or EQ Bank for writing these articles. I’m just hoping to get a higher interest rate on my own hard-saved dollars and I’m documenting my trials and tribulations for your edification and amusement.

Who Can Open a Daily Interest Savings Account at EQ Bank?

Now, on January 23, 2016 the rules say you must

be 19 or older
be a Canadian Resident
not live in Quebec
have a Social Insurance Number
have a personal cheque pre-printed with your name, for a Canadian dollar account at a Canadian financial institution that you can make payable to yourself for at least $1 to open the account

You cannot use a credit card cheque.

You cannot use a void cheque.

Why Do All These e-Banks Seem to Need Me to Send in a Cheque from My Own Chequing Account?

These e-Banks are using the other banks’ security systems to ensure you are who you say you are.

In other words, you are not presenting your personal id such as a Driver’s License with a photo or a Passport when you are opening these e-Bank accounts. So they are demanding you provide proof from another bank that you are who you say you are.

The other bank or credit union issued you cheques in your name after identifying you properly.

If it turns out you applied fraudulently under a false name when opening your e-Bank account, then the e-Bank intends to defend itself it court by shifting the blame to your chequing account bank or credit union for failing to properly identify you. It’s a cover their butt tactic.

How Else Do e-Banks Verify Your Id?

Most of these banks will also ask you a string of questions based on your credit history report. In theory, only you should know those details and be able to answer correctly.
Zag Bank uses credit history questions as part of their account setup practices. EQ Bank said it was going to but I haven’t been asked them yet, so I’m not sure when they will be asked.

What Do I Need to Get Started Opening My e-Bank Account at EQ Bank?

What should I have handy before I start this

your SIN
a valid email address NOTE Your email address will be your login ID!
a password for signing in to your bank account with a minimum of 7 alphanumeric characters

You will also have to be able to access your email quickly to get a passcode that they will email you. The code expires a few minutes after it’s sent.

Getting a Savings Account at EQ Bank

Go to the EQ Bank website and make sure the security settings say you are at the Equitable Bank site.

Click on the Join Now button.

The Step 1 Page

Type the required information in the following fields:

Email address (this will be your Login name!)
Password
Confirm Password
First Name
Middle Name (optional)
Last Name
Address
City
Postal code
Mobile number (optional, which is good because I don’t have a Smart phone) (Or a Smart fridge.)
Other phone number
SIN
Date of birth (dd/mm/yy or select from calendar)
Occupation

From the drop-down list select your Province

Do NOT click on the circle beside No for the question Are you a U.S. person? If you do, it slides over to say YES you are a U.S. person for tax reasons. It’s not a check box.

Click on the Next button.

Step 1 Second Page

Answer the question: “Apart from you (or your joint account holder) will anyone else use or benefit from this account?
If your answer is NO just leave the circle beside NO untouched. (If you click on it, it actually changes your answer to YES.)
Answer the question: “How do you intend to use this account?”
From the drop down list select Personal Savings or the applicable answer.
After you have clicked through and read the Terms and Conditions and the Account Agreement, click to check the box beside:
I have read and agreed to the Terms and Conditions and Account Agreement.
If you want to get ads and other communications, click to check that box.
Click on the button: Open Account

The Step 2 Page

Your new account number will be displayed. Make a note of it somewhere safe!
Sign in to them email address that you provided to EQ Bank.
Open their note to read it and find out your one time passcode.
Type the Passcode in the text field: Enter your six-digit passcode
Click on the button: Verify

Completing Your EQ Bank Account Setup

To completely open your account, you must send in a cheque to EQ Bank either by using a photo cheque deposit app or by mailing it in.

Your cheque must

have your name pre-printed on it
be for an account at another Canadian bank or credit union, not a foreign one (credit card cheques are not acceptable)
must be for an amount of at least $1 (This is because they will actually cash the cheque to prove the account is active and in good standing)
not be a void cheque (So you can’t print a void cheque off at, say, Tangerine)
be made payable to yourself
be signed by you like any other cheque

You can use the EQ Bank app to deposit it OR

Mail it to EQ Bank at their Toronto mailing address which will be provided on the enrollment screen.

Before closing the window, you may want to read the other EQ Bank documents. If so, click on the link provided.

NOTE: EQ Banks says your new account will become active 5 days after they receive and deposit your cheque. They will advise you by email when your account is fully active.

Will it work? Stay tuned!
UPDATE: February 10, 2016: My account is fully activated at EQ Bank and I’m using it in various ways. It all went fine, if a bit slowly.

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Are you tired of opening new bank accounts to chase a better interest rate? Please share your views with a comment.

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Tag Archives: daily interest savings accounts

How Long Will It Take to Open My Savings Account at Zag Bank and EQ Bank?