Scotiabank is one of the best and biggest Canadian banks with competitive financial products such as the Scotiabank MomentumPLUS Savings Account.
The account offers one of the best interest rates available from the Big 5 Banks in Canada. As a tiered account, your interest on the Scotiabank MomentumPLUS Savings Account depends largely on how long you save.
With varying interest rates for short-term and long-term savings, you can save according to your budgets and needs with this account. This post is a detailed Scotiabank MomentumPLUS Savings Account review to help you determine if the account is right for you.
But before diving into the product details, here’s a quick overview of Scotiabank.
Scotiabank is a leading Canadian bank in terms of assets and market value. The bank was founded in Halifax, Nova Scotia in 1832, and merged with the Bank of Nova Scotia.
The bank has a history of over 140 years in Canada making it one of the oldest financial institutions in the country.
Scotiabank has 25 million clients and over $1 trillion in assets at the point of writing this review.. The bank offers different services such as mortgage, credit cards, chequing and high-interest savings accounts, with different savings products that cater to varying financial needs.
Though headquartered in Toronto, Scotiabank has a presence in more than 55 countries around the world, including offices in Canada and the United States.
Scotiabank shares trade on the Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE) under the symbol BNS.
What is the Scotiabank MomentumPLUS Savings Account?
The Scotiabank MomentumPLUS Savings Account is a high-interest savings account that offers more benefits than most other high-interest savings accounts in Canada.
It is one of the best no-fee high-interest savings accounts in Canada with a current interest rate of up to 2.75%. You can open a MomentumPLUS Savings Account online or in person at any Scotiabank branch across Canada.
You can also set up automatic transfers to your account for easy savings, for example; your monthly rent, savings for your new car, vacation or house down payment.
Whether you’re saving for a last-minute vacation or just trying to get ahead on your retirement fund, MomentumPLUS Savings Accounts offer a flexible way to earn more interest and achieve your savings goals faster.
How Does the Scotiabank MomentumPLUS Savings Account Work?
The Scotiabank MomentumPLUS Savings Account is a high savings account that is flexible and easy to use, with no monthly fee and unlimited transactions.
It is designed to maximize your earning potential on your savings. With this type of account, you’ll earn interest on your balance while also earning extra interest when you don’t make any withdrawals for at least 90 days.
The Scotiabank MomentumPLUS Savings Account has a regular or base savings interest rate of 0.35%, but you get a premium depending on how long you hold the balance, referred to as Premium Period.
The table below shows the 4 Premium Periods and the top-up savings interest rate you get:
|Premium Period||Regular Interest Rate (%)||Premium Period Rate (%)||Total Interest Rate (%)|
You can choose from any of the four different rates. The longer the premium period you select, the greater your premium rate will be.
Normally when you withdraw money from the savings account, you lose any premium interest earned up to that point. But if you leave the money in your account for at least 90 days, you’ll also earn extra interest.
For example, say you save $1,000 every month and that you don’t touch your savings in between deposits.
At the end of the first 90 days, you’ll have earned an additional 0.85% in interest adding to the regular savings interest rate of 0.35%.
If you continue saving $1,000 each month for another 90 days, and if you still don’t make any withdrawals between deposits, you will continue earning the additional interest rate.
Pros and Cons of the Scotiabank MomentumPLUS Savings Account
The Scotiabank MomentumPLUS Savings Account offers a high-interest rate and no monthly fee, but it does have a couple of downsides as well.
Here are the pros and cons you should be aware of before opening an account:
No Monthly Fees
One of the best things about the Scotiabank MomentumPLUS savings account is that it waives monthly fees, which makes it easier to save money.
Unlimited Self-Service Transfers
A convenient feature of the Scotiabank MomentumPLUS Savings Account is its unlimited self-service transfers.
These allow you to make free and instant transfers between your chequing account and your savings account, giving you complete control over your money at all times.
If you want to save for something important but don’t want to worry about setting aside the money, the account allows you to set up an automatic savings plan.
This can be done by setting up a recurring payment from your chequing or savings account to the Momentum Plus Savings Account.
No Minimum Deposits
There is no minimum balance required to open or maintain this account. This means you can start saving with any amount you have and not worry about penalties if your savings account dips below a certain amount.
Mobile Cheque Deposit
This account also offers mobile cheque deposit, which allows you to snap your cheque and deposit it into your account using your smartphone or tablet.
This allows you to avoid going to the bank to make cheque deposits, which can be very convenient.
This account also has an attractive feature where you can set up multiple savings goals that you can track online.
This way, you’ll always know how much money is going towards each goal without having to write down numbers in a notebook or spreadsheet.
Interest rates on this account are tiered, so the amount you earn depends on how long you leave your funds it in the account.
The longer the lock-in period, the more interest you earn on those funds. This means you can get paid to save more money.
Ultimate Package Rates
Another major benefit of the account is that you can increase your rate even further by signing up for what’s called the Scotiabank Ultimate Package.
Through the Scotiabank Ultimate Package, you can earn an extra interest rate of 0.10% on your MomentumPLUS Savings Account.
The base interest rate for this account is 0.35% annually. But, you can earn a bonus rate of 1.30% on qualifying deposits.
However, you should note that the bonus rate will only be in effect until August 31, 2022. The interest rate is paid monthly which is compounded daily on balances.
After the 2.75% premium rate expires, you will earn the normal interest rate of 0.35% per year.
This rate is low when you compare it with the rates of other savings accounts in Canada.
No Free Debits
Debit transactions on the Scotiabank MomentumPLUS Savings Account are not free. Scotiabank charges a fee of $5 for each debit on the account.
Therefore, if you’re looking for an account where you can make free debits, this may not be the right account for you.
Scotiabank MomentumPLUS Savings Account Fees
The Scotiabank MomentumPLUS Savings Account doesn’t charge monthly fees, but you do have to pay other fees when using the account. Some of the fees include:
A $20.00 fee is charged for moving your Scotiabank MomentumPLUS Savings Account balance to a different bank or financial institution.
Also, every time you transfer funds from your Scotiabank MomentumPLUS Savings Account to an international account, you’ll be charged $1.99 per transfer regardless of the amount being transferred.
In addition, A $5 fee is charged by Scotiabank for every debit transaction on the account. Finally, there’s a $15 fee for all incoming wire transfers.
Is Scotiabank MomentumPLUS Savings Account For You?
Still wondering if the Scotiabank MomentumPLUS Savings Account is right for you?
The following factors will help you make an informed decision.
1. Interest Rate
With the Scotiabank MomentumPLUS Savings Account, you can earn high interest in your funds. However, it isn’t a regular interest rate. It’s a premium rate that is only available for the short term.
After the premium period ends, you will start earning less on your savings. You should determine whether you are okay with the premium rates or if you want to open an account with a higher regular interest rate.
This account has no monthly fee, but it does have several other types of fees as discussed above. If you’re okay with the additional fees, then Scotiabank MomentumPLUS Savings Account might be for you.
But if you are not, you may wish to compare these fees to what other banks charge before deciding to open the account.
Your MomentumPLUS Savings Account is eligible for Canada Deposit Insurance Corporation (CDIC) deposit insurance coverage, up to applicable limits.
This means, with the MomentumPLUS Savings Account, you can enjoy peace of mind knowing that your money is fully protected.
4. Minimum Balance
The Scotiabank MomentumPLUS Savings Account has no minimum balance, meaning you can start saving as soon as you want.
This account might be a good choice for people who are looking for an easy way to save money with no minimum balance.
How To Open a Scotiabank MomentumPLUS Savings Account
To get started, you’ll need to make sure you have some basic information handy: your name, address and date of birth. Plus, you’ll have to confirm your identity using a government photo ID.
Once you’ve gathered everything together, you’re ready to go. You can choose to open your account in person at one of Scotiabank’s many branches across Canada, or you can proceed via online banking.
Opening a Scotiabank MomentumPLUS Savings Account online is simple. All it takes is a few steps: click your way through the application and provide your information, then confirm the details and wait for confirmation.
Scotiabank MomentumPLUS Savings Account Alternatives
The Scotiabank MomentumPLUS Savings Account is a high-interest savings account that offers a competitive interest rate which is among the highest in Canada.
However, if you’re looking for an alternative to Scotiabank MomentumPLUS Savings Account, we’ve identified two options that may be worth considering below:
Scotiabank MomentumPLUS Savings Account vs Tangerine Savings Account
Both Scotiabank MomentumPLUS Savings Account and the Tangerine Savings Account are high savings accounts that offer a high interest for a short period.
Both accounts have no minimum balance requirement or monthly fees. These two accounts have similar interest rates, but there is a slight difference between them.
The Scotiabank MomentumPLUS Savings Account offers a tiered interest rate of up to 2.75% if you are willing to lock your savings for at least 90 days without Withdrawal.
Tangerine Savings Account on the other hand offers an interest rate of 2.75% for 5 months if you open a new account using the promo code “EARNMORE”.
Another difference between the two account is that customers of the Tangerine Savings Account get free access to their money at any time by using an ATM or branch.
However, customers of the Scotiabank account must wait until maturity before they can withdraw their money and earn the predetermined premium rate.
Also, the Scotiabank MomentumPLUS Savings Account gives you access to Scotia’s full suite of in-branch services while the Tangerine Savings Account is only available online.
LEARN MORE: Tangerine Savings Account Review
Scotiabank MomentumPLUS Savings Account vs EQ Bank Savings Plus Account
If you’re looking for a savings account that offers you a high-interest rate, the Scotiabank MomentumPLUS Savings Account and the EQ Bank Savings Plus Account are both good options.
Both accounts require no monthly minimum balance and don’t charge any fees whatsoever. You can deposit as much or as little as you like with no extra costs.
However, the difference between them is that the high-interest rate on the Scotiabank MomentumPLUS Savings Account is only for a short period while the one on EQ Bank Savings Plus Account is standard.
The 2.75% maximum savings interest on the Scotiabank MomentumPLUS Savings Account is only for a short period for new customers. And the interest is only accessible when you leave it in the account for a minimum of 90 days and a maximum of 360 days. After that, the rate drops to the regular 0.35% rate.
The EQ Bank Savings Plus Account, on the other hand, offers a competitive interest of 1.50% without any conditions or strings attached which means your money will continue to grow indefinitely, as long as you leave it there.
Also, the Scotiabank account offers access to in-branch services, while EQ Bank is only available online.
LEARN MORE: EQ Bank Savings Plus Review
Scotiabank MomentumPLUS Savings Account comes with several attractive and valuable benefits, including the ability to earn an interest rate significantly higher than standard savings accounts.
If this sounds like the perfect account for your financial needs, don’t hesitate to sign-up.
I hope this Scotiabank MomentumPLUS Savings Account review was useful and has helped you make the best decision about your banking so that you can get the maximum interest rate you deserve.
If you’re still unsure about the account, consider how it compares against other high-interest savings accounts we have discussed above.
Scotiabank MomentumPLUS Savings Account Review
The Scotiabank MomentumPLUS Savings Account is a high-interest savings account that offers more benefits than most other high-interest savings accounts from the Big 5 banks in Canada.