The Scotiabank MomentumPLUS Savings Account is a high-interest savings account designed to incentivize longer-term saving with tiered interest rates. It operates with no monthly fees and no minimum balance requirement, making it accessible for various savings goals. Interest is calculated daily on the entire balance and paid monthly, with the potential to earn higher rates through structured premium periods and banking package bonuses. This account can also be registered as a TFSA, RRSP, RESP, or RRIF, offering flexibility for tax-advantaged savings.
How the MomentumPLUS Account Interest Structure Works
The MomentumPLUS Savings Account uses a multi-layered interest structure to reward customers for maintaining their deposits. First, all balances earn a regular interest rate applied to the daily closing balance, which is paid out every month. As of the available information, the base regular interest rate is 0.40% per annum. On top of this, customers can activate a premium period to earn additional premium interest. The premium interest is calculated daily on each deposit and any paid regular interest but is only paid at the end of the chosen premium period, provided no withdrawals are made during that time. This structure creates an incentive to lock funds away for a set duration to maximize returns. The account also allows customers to save for multiple goals within a single account while utilizing different premium periods for different portions of the balance.
The premium interest rates increase with the length of the commitment. For a 90-day premium period, the additional rate is 0.05%. A 180-day period offers a 0.10% premium, a 270-day period offers 0.15%, and the longest 360-day period offers a 0.30% premium rate. These premium rates are added to the regular interest rate. Furthermore, customers with certain Scotiabank banking packages receive an additional interest rate boost on top of both the regular and premium rates. Customers with the Ultimate Package earn an extra 0.10%, while Preferred Package customers earn an extra 0.05%. All interest rates are per annum and are subject to change by the bank.
Premium Period Rules and Transaction Impact
A premium period is a fixed-length commitment where you agree not to withdraw funds from a specific portion of your savings in order to earn the premium interest. You can start a premium period for 90, 180, 270, or 360 days. The premium interest for a deposit is determined by the premium period length you select for that specific deposit. If you make additional deposits during an active premium period, the premium interest rate for that new deposit is based on the remaining days left in that existing period. This means a deposit made late in a long premium period will earn the high premium rate for only a short time.
You are permitted to withdraw money from the account at any time. However, conducting any debit transaction from a specific premium period before its end date will cause you to forfeit all accrued premium interest for that period. You will still earn the regular interest on the funds up to the point of withdrawal. When a withdrawal occurs, a new premium period of the same original duration automatically restarts the same day using the remaining balance in that segment. If you have multiple premium periods running concurrently, only the premium period you withdraw from is affected. This system allows for flexibility while maintaining the incentive structure for undisturbed savings.
Promotional and Welcome Bonus Interest Offers
Scotiabank periodically offers limited-time promotional interest rates for the MomentumPLUS Savings Account to attract new customers. One such promotion offers a savings rate of 4.65% for a limited time with a 90-day premium period. For customers with an Ultimate Package, this promotional rate increases to 4.75%, and for Preferred Package customers, it becomes 4.70%. It is important to note that these are total rates combining the regular, premium, and package bonus components for the promotional term. These offers are typically targeted at new account holders who do not currently have a MomentumPLUS or Scotia High Interest Savings Account.
Separately, a Welcome Bonus Interest Rate Offer may be available for first-time account openers. This offer provides a 4.05% welcome bonus interest rate on eligible deposits made during the first three months from the account opening date. This bonus interest is calculated daily and paid monthly. To qualify, you must open your first MomentumPLUS Savings Account. Promotional and welcome rates are subject to specific terms and conditions and have expiration dates, so customers must enroll in the offer after opening the account and receiving their ScotiaCard.
![Scotiabank] Scotiabank HISA MPSA 4.65% 90 days + $80 GCR, Page 5 ...](/media/scotiabank-momentumplus-savings-account-g3.jpg)
Account Features, Fees, and Accessibility
The MomentumPLUS Savings Account has several defining features aimed at flexible and cost-effective saving. There is no monthly account fee and no minimum balance is required to open or maintain the account. Customers benefit from unlimited self-service transfers between their own Scotiabank accounts, such as from a chequing to this savings account. However, transactions other than these debit transactions or internal transfers may be subject to standard service charges. The account is primarily designed for digital and branch-based management, as it cannot be accessed through an ATM for withdrawals or deposits.
The account can be opened and held as a standard non-registered savings account. It can also be registered within various tax-advantaged plans, specifically as a Tax-Free Savings Account (TFSA), a Registered Retirement Savings Plan (RRSP), a Registered Education Savings Plan (RESP), or a Registered Retirement Income Fund (RRIF). This provides significant flexibility for long-term financial planning. Deposits in the account are eligible for Canada Deposit Insurance Corporation (CDIC) coverage up to applicable limits, providing security for savers. The account does not have a dedicated ScotiaCard for ATM use, aligning with its design as a savings vehicle rather than a daily transactional account.
Eligibility and Steps to Open an Account
To be eligible for a Scotiabank MomentumPLUS Savings Account, you must be a resident of Canada. This includes students and individuals in Canada for work. You must also be at least the age of majority in your province or territory, which is 18 or 19 years old. Applicants need to provide standard personal information including their full legal name, date of birth, current address, Social Insurance Number (SIN), and employment information. Scotiabank offers multiple ways to verify your identity, either online using information from an existing Canadian bank account or in person with government-issued photo identification.
You can open an account through three main channels: over the phone, online via Scotiabank's website, or in person at a branch. Opening an account online is often the most convenient method. The process involves visiting the Scotiabank website, selecting the MomentumPLUS Savings Account, and completing the digital application form. You will need to provide the required personal and financial information and agree to the account terms. After submission and identity verification, the account is typically opened promptly, and you can begin funding it and setting up premium periods. Scotiabank serves customers through internet, mobile, and telephone banking services as well as at more than 900 branches across the country.
Comparing Scotiabank Savings Account Options
Scotiabank offers several savings accounts, each with different structures. The MomentumPLUS account is distinct for its premium period incentive model and lack of minimum balance. In contrast, the Scotia High Interest Savings Account (HISA) uses a tiered balance system where interest is only paid on balances over $10,000, but it offers a promotional rate of up to 5.00% for the first three months for new customers. The Scotia Power Savings Account requires a minimum balance of over $5,000 to earn its competitive rate but offers ATM access. The Money Master Savings Account has no fees or minimums and includes free unlimited transfers and ATM access, functioning as a more basic transactional savings account.
| Account Name | Key Feature | Interest Note |
|---|---|---|
| MomentumPLUS Savings | Premium period incentives, no minimum balance | Rate increases with longer premium periods |
| Scotia High Interest Savings (HISA) | Promotional rate for new customers | 0% on balances under $10,000. Promo up to 5.00% |
| Scotia Power Savings | ATM access | Requires balance >$5,000 for posted rate |
| Money Master Savings | Unlimited transfers, ATM access | No minimums, standard savings rate |
The Getting There Savings Program for Youth is designed for clients aged 18 and under. It offers unlimited Interac debit transactions and no monthly fees. The account provides an interest rate higher than some other Scotiabank savings account options. Scotiabank offers a variety of specialized accounts, including TFSAs, RRSPs, and FHSAs, that can be paired with Scotia iTRADE. Scotia iTRADE lets you hold GICs, mutual funds, ETFs, and foreign currency deposits. Scotiabank also provides U.S. dollar and Euro savings accounts. These accounts give you the flexibility to earn interest in multiple currencies.
Common Considerations and Potential Mistakes
When using the MomentumPLUS Savings Account, understanding the premium period rules is crucial to avoid losing earned interest. The most common mistake is making a withdrawal from a premium period before it ends, which results in forfeiting all accrued premium interest for that period. It is important to plan withdrawals carefully and consider segregating funds for short-term needs into a different account or a separate premium period. Another consideration is the impact of additional deposits during a premium period. The premium rate applied is based on the remaining days, so a deposit made near the end of a long period earns the high rate for only a short time.
Customers should also be aware that the advertised high interest rates often combine regular, premium, and promotional components. The 4.65% promotional rate, for example, is for a limited time with a specific 90-day premium period. After the promotion ends or the premium period completes, the rate reverts to the standard structure. Failing to enroll in a promotional offer after opening the account is another oversight that can cause customers to miss out on bonus interest. Furthermore, while the account has no monthly fee, other transaction fees may apply for certain services, and the account cannot be accessed via ATM, which may limit convenience for some users. The account is not designed for frequent withdrawals, and using it as a primary transactional account could negate the interest benefits.
Frequently asked questions
What is the interest rate for the Scotiabank MomentumPLUS Savings Account?
The interest rate consists of multiple parts. A regular interest rate, which was 0.40% as per available information, is paid monthly on the daily balance. You can add premium interest by starting a premium period, which adds 0.05% for 90 days, 0.10% for 180 days, 0.15% for 270 days, or 0.30% for 360 days. Customers with an Ultimate Package get an extra 0.10% boost, and Preferred Package customers get an extra 0.05% boost. Promotional rates, like a limited-time 4.65% offer, may also be available.
Can I withdraw money anytime without penalty?
Yes, you can withdraw money from your MomentumPLUS Savings Account at any time. However, if you make a withdrawal from a specific premium period before its end date, you will forfeit all the premium interest accrued for that period. You will still earn the regular interest on the funds up to the withdrawal date. The account then automatically starts a new premium period of the same length with the remaining balance.
Are there any fees for this account?
The MomentumPLUS Savings Account has no monthly account fees and no minimum balance requirement. There are also unlimited free self-service transfers between your Scotiabank accounts. However, other types of transactions or services may be subject to standard Scotiabank service charges. It is important to review the bank's schedule of fees for details on charges for specific transactions.
How do I open a MomentumPLUS Savings Account?
You can open an account online, over the phone, or at a Scotiabank branch. To apply, you must be a Canadian resident and at least the age of majority (18 or 19). You will need to provide personal information like your name, address, date of birth, and Social Insurance Number. Identity can be verified online using an existing Canadian bank account or in person with government-issued ID.
How does it compare to other Scotiabank savings accounts?
The MomentumPLUS Savings Account pays interest on the entire balance. The Scotia High Interest Savings Account offers 0 percent interest on balances less than 10,000 dollars. The Money Master Savings Account has no monthly fees or minimum balance requirements and offers convenient ATM access. The Scotia Power Savings Account requires a minimum balance of more than 5,000 dollars to get its competitive interest rate.
Can this be a TFSA or RRSP?
Yes, the MomentumPLUS Savings Account can be opened as a Tax-Free Savings Account, a Registered Retirement Savings Plan, a Registered Education Savings Plan, or a Registered Retirement Income Fund. This account can be held within these registered plans. Scotiabank offers a range of specialized accounts, including TFSAs and RRSPs, that can be paired with Scotia iTRADE. This flexibility allows you to use the MomentumPLUS Savings Account's features for various registered savings goals. The account's structure, which encourages saving for multiple goals and earning interest calculated daily, can be applied within these tax-advantaged frameworks.
Sources and further reading
- MomentumPLUS Savings Account | Scotiabank Canada scotiabank.com
- The best Scotiabank savings accounts in Canada ratehub.ca
- Compare Scotiabank savings account options finder.com
This article explains how things work and is not financial, tax or legal advice. Rules, limits and rates change, so check the current figures with the Canada Revenue Agency, your province or your financial institution before you act.