CIBC savings accounts, compared
Let’s talk savings accounts. More specifically, let’s talk CIBC savings accounts.
If you’re a customer of Canada’s smallest-of-the-big-five-banks (or are thinking of becoming one), we’ve got the low down on all your savings account options. The essentials you need to know are that CIBC – or Canadian Imperial Bank of Commerce – offers four different savings accounts. They all have different features aimed at different types of savers. Let’s get to know them.
My top pick
It all depends on your goals but, in my opinion, the most useful CIBC savings account is CIBC TFSA Tax Advantage Savings Account. It gives you the advantages of growing your money, tax free, and the flexibility to access your funds at any time, which makes it a solid choice for short-term savings like starting an emergency fund. However, if that doesn’t sound like your savings goal, there might be another account type better suited to your needs.
Best CIBC savings accounts
As mentioned, CIBC offers four different savings accounts. Each one serves a different purpose, so read on to see which one might be best for you.
CIBC eAdvantage Savings Account
- Interest rate: 0.4%-1.7%
- Monthly fee: $0
- Minimum balance: $0
- Transaction cost: $5 per transaction
Pros
-
No monthly fees
-
No minimum balance
Cons
-
High transaction cost
-
Low interest rate of 0.4% (unless your balance is at least $10,000)
-
$1.50 cost to send e-transfers
The CIBC eAdvantage Savings Account is a high-interest savings account that might be a good choice for short-term savings. There are no fees and no minimum balances.
While it’s considered a “high-interest” savings account, the interest rates aren’t super competitive, when compared to some others in the industry. This is how the interest rates work:
Balance up to $9,999.99: 0.40%
Balance $10,000 to $24,999.99: 0.65%
Balance $25,000 to $99,999.99: 1.20%
Balance $100,000 to $499,999.99: 1.50%
Balance $500,000 and over: 1.70%
Looking for higher interest rates? Check out our picks for the best high-interest savings accounts in Canada.
CIBC US$ Personal Account
- Interest rate: 0.05%-0.5%
- Monthly fee: $0
- Minimum balance: $0
- Transaction cost: USD$0.75 per transactions
Pros
-
No monthly fees
-
No minimum balance
-
A savings account option for earning interest on US funds
Cons
-
Cost of USD$0.75 per transaction
-
Paper statements cost $2.25 US each month
-
No Interac e-transfers
The CIBC US$ Personal Account is for the Canadian saver who often travels with some regularity to the United States. Maybe you travel there regularly for work, to visit family or are a snowbird. No matter the reason, the CIBC US$ Personal Account is a good place to stash your American funds, while earning interest. Like the eAdvantage savings account, this one has tiered savings rates. Here’s how it breaks down:
Balance up to $2,999.99: 0.05%
Balance $3,000 to $9,999.99: 0.05%
Balance $10,000 to $24,999.99: 0.25%
Balance $25,000 to $59,999.99: 0.25%
On portion of balances $60,000 and over: 0.50%
CIBC TFSA Tax Advantage Savings Account
- Interest rate: 0.7%
- Monthly fee: $0
- Minimum investment: $25
Pros
-
Save in a TFSA with a guaranteed return
-
No monthly fees
-
Low minimum investment
-
Withdraw your funds whenever you need them
Cons
-
Lower potential earnings than investing stocks, ETFs or mutual funds in a TFSA
The CIBC TFSA Tax Advantage Savings Account does what its name suggests: allows you to take advantage of the tax benefits of a TFSA with your cash.
Unlike investing in a TFSA in things like ETFs or stocks, the cash in your account earns a guaranteed return without the market volatility of those investments.
That said, the stock market returns, on average between 6-10% a year. If you're looking to start earning more on your money with zero investing knowledge, check out our page on the best robo-advisors in Canada and let the robots automatically invest for you.
CIBC RRSP Daily Interest Savings Account
- Interest rate: 0.05%
- Monthly fee: $0
- Minimum investment: $25
Pros
-
Save in an RRSP with a guaranteed return
-
No monthly fees
-
Low minimum investment
Cons
-
Lower potential earnings than investing stocks, ETFs or mutual funds
-
Less flexible than a TFSA
Think of this account as the RRSP sister of the TFSA tax advantage account. It's similar in that it offers tax advantages but isn’t as flexible when it comes to withdrawals. Savings in an RRSP are meant for retirement, but can also be withdrawn for things like buying a home or paying for school.
You can earn a higher return on your deposits buying the best ETFs in Canada. All you need to get started is a brokerage that unlocks the door to these ETFs that grow over time.
Here's some of our favourites:
CIBC Investor's Edge review | Questrade review | Wealthsimple review |
---|---|---|
◦ In-depth research to boost your investment knowledge.
◦ Investment options for every investor, no matter what your financial goals are. ◦ Under 25? Trade for free. |
◦ Buy any North American-listed ETF, including crypto ETFs, commission-free.
◦ No maximum on the amount of free ETFs you can buy. ◦ No minimum investment amount required on ETF orders. |
◦ No account minimums
◦ $0 commission ETF trading ◦ Reinvest dividends automatically |
Buy my first ETF | Buy my first ETF | Buy my first ETF |
CIBC's bundle/everything package | CIBC Smart™ Plus Account
If you’re looking for a savings and chequing account bundle, CIBC has you covered with its CIBC Smart Plus Account. If you bundle that with its eAdvantage Savings Account, they’ll give you $600 (though some conditions apply).
It’s a nice little chunk of change to kickstart your savings.
The chequing account costs $29.95 per month (though those fees are waived if you keep a minimum balance of $6,000 in your account or have $100,000 invested with CIBC). The chequing account gives you unlimited transactions, unlimited withdrawals at CIBC ATMs and free personalized cheques, bank drafts and money orders.
The bundle might be worth it for you if you can keep the minimum balance required to waive the fee. Otherwise, there are more affordable options available in the market for chequing and savings accounts.
Summary of CIBC savings accounts
CIBC customer service reviews
When it comes to customer service, CIBC is lacking – at least according to TrustPilot. It has a “Bad” rating of just 1.4 out of 5 stars, with users citing long hold times, issues with receiving cards, issues with applying for credit cards and high fees. Users on Reddit have shared similar sentiments, lamenting long wait times, issues reaching an actual human to receive help and dealing with issues that take too long to be resolved. However, it should be known that these complaints are unique to CIBC – other big banks have received similar complaints over the years.
How to open CIBC savings account
- Apply online or in-person
- Have the minimum investment required (only required for TFSA or RRSP savings accounts)
- Provide a piece of photo ID (such as a driver’s license)
- You might also have to provide your social insurance number and proof of address
FAQs
Justin is a writer and editor who has been covering personal finance for over 10 years. He's written for companies such as KOHO, Ratehub, BMO, Zoocasa, and Questrade, among others. Justin also created a course in Content Creation, which he taught at York University for four years. When not writing, Justin can be found at a live concert, on the golf course, riding a motorcycle, or sailing.
Explore the latest articles
7 Hidden Dangers of Secondary Suite Mortgages
Homeowners could fall off the debt cliff if they ignore the 7 potential pitfalls of the new federal government‘s secondary suite mortgage program
Disclaimer
The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.