Maximize interest earned, minimize interest paid

Growing your savings while managing your day-to-day expenses can be a challenge. Old habits can drive you to manage your bills from your chequing account and move what’s left at the end of the month to your savings account, however, between the monthly chequing account fees that eat into your balance and the low (if any) interest on that chequing account, it leaves considerably less for savings. Add a credit card, and it’s a careful balance between holding your money to earn interest and paying off the card by the due date, to avoid big interest charges or a negative effect on your credit score.

A Savings Plus Account + Your Favourite Card = Everything You Need

What if there were an easy way to increase your earnings, eliminate those monthly fees, and minimize the interest you pay on your credit card balances? And what if there were a flexible, convenient, easier way to save, and you didn’t have to worry about those big interest charges that come with missing your credit card payment?

Consider this. If you haven’t already, opening a Savings Plus Account will help you eliminate monthly fees. Switching your direct deposit to this account can offer greater returns – you’ll earn high interest on every dollar from the moment your paycheque is deposited. This means all your hard-earned money is growing, even if some of it only sits there for a short while (because sadly, we all know that credit card payment due dates always come around).

Before we go any further, let’s talk spending. Most of us, at least once, have looked at a bank statement and uttered the phrase “I spent how much?” A prepaid card can be a great way to stay in control of that discretionary spending. Try giving yourself a bi-weekly or monthly budget with the funds you load on your EQ Bank Card. You can keep your spending on track without going into overdraft with a debit card or overspending like you might with a credit card, as you’re only spending what you have. If you need a full overview of how much you’ve spent and how much is left, simply log into your account to find a full itemized list. One thing you won’t see? Overdraft, high interest charges, or hidden fees adding up and eating into your bottom line. 

If you’re watching your spending, chances are you might also be watching your credit report. A late or missed payment can wreak havoc on your credit score, so staying ahead of your spending with a prepaid card can help avoid those missteps. An added bonus? The EQ Bank Card doesn’t affect your credit score.

Don’t get caught by high interest charges

If you prefer to use a credit card for your monthly spending, we can help you there, too. Set it up to automatically withdraw funds directly from your Savings Plus Account each month, on or before the due date. Although credit cards from all the big five banks, as well as American Express and MBNA are eligible, it might be a confusing process - so we’ve compiled a reference guide to help you get started. Doing this will help maximize the amount of interest you earn by keeping your money in your Savings Plus Account until it is needed to pay off your credit card, while ensuring that you don’t get caught paying those high credit card interest charges. Keep in mind that carrying a balance on your credit card from one statement period to the next, may incur significant interest charges.

Each bank has its own process to set up the automated payments, but once you’ve set it up, you’ll never have to worry about missing a payment again. Flexible – check. Convenient – check. And once it becomes effortless to pay off your credit card balance, you might want to use your credit card for all of your day-to-day transactions to maximize your credit card reward points.

Here’s how to get started:

Step One: Open your no-monthly fee Savings Plus Account, if you haven’t already.

Step Two: Move funds into your Savings Plus Account, and start earning high interest right away.

Step Three: Use your EQ Bank Card for everyday spending, and earn cash back on every purchase.

Step Four: Set up your credit card(s) to be automatically paid out of your Savings Plus Account.

It’s a simple way to maximize your savings while avoiding interest charges on your credit card for your day-to-day transactions. And you get to keep more of your earnings.

Need help? This quick reference guide can help you set up your credit card for pre-authorized payments: