I would suggest you try the President's Choice (PC) bank. They pay higher interest and are more convenient. They have a free bank account (cheques, transactions, etc. are all free). There are no charges to pay for things with your bank card while shopping, and they are run through CIBC so you can use all the CIBC machines for free (and you can make your deposits through CIBC machines). They have a couple of high interest accounts. The best one pays I think around 4% right now (but that's with a $1000 balance). You can apply online or at your local Superstore if you have one.
I found with ING they are consistently about .25% behind the President's Choice Interest Plus account. If you have less than $1000 the ING account pays better. What I would recommend is save up in the ING until you hit that point then transfer to higher interest at the PC financial. It is super easy to link the two accounts which is nice.
I used to use ING for savings and PC for my day to day banking, but once they started their higher interest account I only use PC now. There isn't anywhere in Victoria that has a bank machine for ING so I've never used my ING bank card (I refuse to pay charges whenever I want to use my card).
Added: I just checked and the PC Interest Plus rate is now down to 3.75%. Still better than ING, but it was at about 4.25% a few months ago
Good luck with the savings!