How to optimize your banking to earn interest on every dollar

“Make your money work for you.” We’ve heard it, we’ve thought about it, and it’s time to put thought into action. In a few easy steps, you can increase your earnings, without a ton of mental math, spreadsheets, or tension headaches. (We promise.)

Here’s how you can earn interest on every single dollar.

Step one: Have your payroll direct-deposited into an everyday account that earns high interest

Let’s face it, it’s likely you’ve had your regular paycheques deposited into the same account for years. Chances are, if it’s a traditional chequing account, you aren’t reaping a ton of benefits. In the meantime, you’re potentially juggling to maintain a minimum balance to avoid those pesky monthly fees.

By switching your payroll to be deposited directly into an EQ Bank Savings Plus Account, you'll start earning high interest on every dollar you make, starting the moment you get paid. And you can forget about hidden or monthly fees. Instead, more of your earnings will start to multiply by earning interest.

Step two: Create multiple accounts to stay on budget

The old way of banking – one chequing account for spending and bills and one savings account to build interest – is over. You can have multiple accounts, but there are better ways to organize them and earn more money.

Automated transfers are the perfect way to ensure your money works for you. It’s easy to set up transfers that occur as soon as your pay is deposited so your money is organized based on your budget, and it’s all automatically earning interest.

Example: On pay day, you could automatically transfer some of your earnings to your emergency fund, some to an account just for bills, and some to a joint account for shared expenses with your partner. (Each of these accounts would earn the same high interest rate with EQ Bank.) The remaining money can stay in your main Savings Plus Account for everyday spending.

Here's another example of this system in action.

Step three: Use a cash-back card for your everyday spending

For your daily spending, use a cash back card that best suits your lifestyle, like the EQ Bank Card. Each purchase will earn you 0.5% cash back* and those funds will go straight to you. In the meantime, the money you allocated for spending on your EQ Bank Card is earning high interest up until the moment it’s spent. Talk about maximizing your earnings!

Step four: Pay your bills directly from your high interest savings account

Bill payments are free with EQ Bank, so you can pay all your bills directly from any of your Savings Plus Accounts without worrying about racking up any extra fees. This means you can earn interest on all the money you set aside for bills each month. If you allocate cash from each paycheque for things like rent, mortgage payments, or car payments, your money will be working harder for you, instead of just sitting idle.

Step five: Sit back, relax and let your money work for you.

Keep reading for more ways to optimize your earnings.

 

* Cash back will be paid monthly. See the EQ Bank Card Agreement for details on earning cash back and other terms and conditions that apply to the EQ Bank Card.