Manulife Bank of Canada has increased the interest rate to 2.8% on its RRSP-eligible, high-interest bank account.

“Financial experts are again divided on whether equity markets will show strength in 2003. With the RRSP contribution deadline close at hand, some investors may be apprehensive about their contributions going into equity markets that have been less than spectacular over the last two years.” said Roman Fedchyshyn, Manulife Bank of Canada president and CEO.

Manulife is pitching the account as an alternative to money market funds and GICs. The account offers all the liquidity of a money market fund, but none of the management fees.

Clients are free to move their money to another RRSP account when they regain confidence in the markets,

The 2.8% variable annual interest effective today on the Registered Advantage Account is calculated on the total daily closing balance and paid monthly. Rates are subject to change.

“We want to change the way Canadians bank by creating innovative and market leading products delivered through financial advisors,” said Fedchyshyn. “The Registered Advantage Account is an excellent alternative for giving financial advisors a high-interest harbour for their clients’ RRSP contributions until they’re ready to test the equity waters again.”