For example, many banks have accounts give the same rate as term deposits if depositors keep a minimum monthly balance. Most of the other banks have similar types of accounts, so it is worth investigating at your particular branch. Depositors that have long suffered from the inadequacy of savings accounts are finding that the rate paid on deposits has improved. Competition has pressured many financial institutions into making chequing accounts more flexible. As well, the spin-off effects have benefited savings accounts.
Premium rates are available on certain savings accounts if a minimum monthly balance is maintained.
The minimum balance is generally less than that required for the chequing accounts. Again, a shopping trip to your local bank or trust company would enlighten you on the specifics of their particular accounts. Another alternative is the money market fund. A money market fund is in fact a mutual fund. You purchase shares in the fund, and the money is pooled with thousands of other investors.