Peoples Trust Review 2023: Is it Right For You?

Peoples Trust is an online bank that provides some of the best interest rates on savings and GICs in Canada to its customers.

In this Peoples Trust review, you’ll learn everything you need to know about its account types, rates, opening an account and how it compares to other banks.

Peoples Trust: Key Facts

Account Opening	Online
Minimum Opening Deposit	$0
Account Types	High interest savings account (HISA) and GICs
HISA Rate	3.40%
Registered Account Offerings	TFSA and RRSP
Monthly Maintenance Fees	Free
Deposit Insurance	$100 per insured category through CDIC
Parent	Peoples Group
Loans	Yes, through Peoples Bank

About Peoples Trust

Peoples Trust is a member of Peoples Group, a financial services company that has been serving Canadians since 1985. It has its headquarters in Vancouver, BC but serves clients across Canada.

In addition to the deposits and investment offerings from Peoples Trust, the group also provides mortgage, commercial lending, payments and card services directly or through one of its subsidiaries.

Peoples Trust Savings Accounts

There are 2 high interest accounts offered by the bank: Peoples Choice e-Savings and Peoples Trust Tax Free Savings.

Both accounts have a competitive interest rate of 3.40% at the moment – way higher than you would get from any of the big banks and compares favourably with other online banks.

Some of the other features include:

• No minimum deposits
• There are no monthly fees or transactions charges
• Ability to link the account to multiple financial institutions
• Deposit protection through CDIC

There are no caps for the e-savings account. You may save as much as you’d like. However, you should track your TFSA contribution room with the TFSA account.

Peoples Trust GICs

The bank has one of the best GIC rates in Canada.

If you’re willing to lock in your funds for a little longer, you can get a slightly higher rate from Peoples Trust.

The current GIC rates are:

• 1-year term: 5.80%
• 2-year term: 5.70%
• 3-year term: 5.10%
• 4-year term: 4.65%
• 5-year term: 4.50%

Peoples Trust also has TFSA GICs and RRSP GICs; so the GICs can be held in a non-registered/cash account or registered accounts.

The non-registered GIC also has shorter terms below 1 year but registered GICs are only available for longer term maturities of 1-5 years.

Other features include:

• Minimum investment of $1,000
• Interest paid annually or compounded
• Not redeemable prior to maturity
• Beneficiary designation allowed for the registered accounts.
• Eligible for CDIC protection

The RRSP GIC can also be used for Homebuyers Plan and Lifelong Learning Plan.

All the rates are current as of the time of this Peoples Trust Review. To get the current rates, please check the website here.

Peoples Trust Lending Services

Peoples Bank, another member of the Peoples Group offers a Residential Lending service and Mortgage Alternatives for Brokers.

Commercial lending, CMHC lending and Mortgage investing services are provided by Peoples Group.

How to Open An Account at Peoples Trust

You can open a new account by completing an online application if you’re:

• A resident of Canada
• Reached the age of majority in your province; and
• Have a valid social insurance number (SIN)

Usually, you’ll be required to mail in a cheque from another financial institution. However, due to COVID-19, prospective clients are now provided with alternatives.

An email with detailed instructions will be sent out once your application is complete.

If you have any questions during the account opening process, you can reach People Trust by phone at 604-331-3465 or 800-663-0324 (toll-free). The hours of operation are between 8am and 4.30pm on Mondays to Fridays.

Peoples Trust Fees

There are no monthly maintenance or transaction fees on the Peoples Choice e-savings account.

This is because it is a lean account offering without all the bells and whistles. For example, you can’t use it for bills transfer or make ATM withdrawals.

The fee schedule for Peoples Bank, another member of the group, can be found here.

Pros and Cons of Peoples Trust

Pros of Peoples Trust

• The bank pays a competitive interest rate on its accounts
• Deposits are protected by CDIC up to $100,000 per insured category

Cons of Peoples Trust

• The savings account is not designed for everyday transactions
• Bill payments are not allowed
• Limited account funding or withdrawal options
• Longer hold periods: 4 days for deposits of $1,500 and below or 7 days for higher amounts.

Is Peoples Trust Safe

As a federally regulated deposit taking financial institution, deposits at Peoples Trust are covered by Canada Deposit Insurance Corporation (CDIC) up to $100,000 per insured category.

That is, if you have separate TFSA, RRSP or cash accounts with People Trust, they’ll all be covered up to $100,000 each.

You can learn more about how CDIC coverage works and how to maximize the protection in the links.

Peoples Trust vs Competitors

So how does Peoples Trust compare to other online banks?

If you want to earn the best interest rate on your savings, then you may be able to get a higher rate than what Peoples Trust pays from other banks such as:

• EQ Bank: 3.00%
• Motive Financial: 4.10%
• Oaken: 3.40%
• Saven Financial: 3.80%
• Neo Financial: 3.40%
• Tangerine ( Promotional rate of 6.00% for the first 5 months; 1.00% afterwards + $500 Cash Bonus)

Related Post: Best High Interest Savings Accounts

Peoples Trust Vs EQ Bank

EQ Bank has one of the highest interest rates on a savings account in Canada. In addition, you get to bank for almost zero fees on everyday transactions including bill payments, transfers and many more.

EQ Banks Savings Plus account is a hybrid account that has the features of a savings and chequing account. So if you’re looking for an account with more features, EQ Bank is the better choice between the 2 banks.

You can read my full review of EQ Bank here or sign up for an EQ Bank account here.

Learn More: EQ Bank TFSA and RSP Accounts Review

Final Thoughts

Peoples Trust may be right for you if you just want a place to stash your savings and won’t be needing the money in a while.

The interest rate on its savings account is competitive, though you can get a slightly higher rate from other banks. Its GIC rates are also one of the highest in Canada. So overall, this Peoples Trust review is positive.

You can also check out my review of other online banks through the links below:

• Accelerate Financial Review
• Hubert Financial Review: Happy Savings
• MAXA Financial Review (Read Before Applying!)