Looking for the best high interest savings account in Canada? Whether you want the highest possible interest rate or no service fees, you'll find the best savings account to meet your needs.
Generally savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest is a no-brainer.
However, when shopping for an account, there’s more to consider than just the interest. You can make an informed decision by using the finder tool to compare the fees and features of several different options available. But do scroll down to read our seven editors’ picks for the best high-interest savings accounts (HISA) in Canada.
These are rates offered by Ratehub partners. You can find information about additional product options below.
You can compare high-interest rates in the table above or input your estimated account balance to compare the growth between HISAs, tax-free savings accounts, registered retirement savings plans and youth savings accounts.
This HISA may sneak under the radar, but once you see the rate you will be impressed. This online-only financial institution hits in with a strong interest rate on its HISA offering, along with no minimum balance requirements and free transfers. Saven is a division of FirstOntario Credit Union, a financial institution with roots back to 1939, and which currently has more than 126,000 member clients. Note, you will need to invest at least $25 to become a member of FirstOntario.
Motive Financial, the online banking division of Canadian Western Bank, offers the highest regular interest rate on this list. As such, your eligible deposits are held at Canadian Western Bank, and protected by the Canada Deposit Insurance Corporation (CDIC; see details below). There isn’t a monthly fee, and account holders get two free monthly withdrawals. But additional transactions will cost you.
EQ Bank is owned by Equitable Bank, a Canadian institution in business since 1970. Another in the burgeoning online space, EQ Bank offers great returns on their Savings Plus account. There is no fee for the account and no minimum balance. All services, including Interac e-Transfer, are free.
Maxa is a division of Westoba Credit Union, located in Manitoba. But its accounts are open to all Canadians, and it offers an impressive interest rate on savings. There’s no fee, but account holders can expect to pay service charges for many transactions.
The Neo High-Interest Savings Account is a no-fee hybrid account that lets you spend and save—and earn cash back rewards—all in one place. Clients earn 1.30% in interest on every $1 held in the account, and can access their money from an app on their phone, making bill payments, purchases, Interac e-Transfer transactions and more simple and seamless.
Wealthsimple Cash* was launched in January 2020 by the Canadian online financial services provider Wealthsimple. Joining the fintech’s original robo-advisor offering and its more recently added discount brokerage Wealthsimple Trade, Wealthsimple Cash is a hybrid chequing and savings account. Unlike many of the big banks, this institution offers a high regular interest rate. Plus, as with a good chequing account, this one gives you unlimited transactions with zero fees. From the account, you can make no-fee bill payments and Interac e-Transfer transactions. If you have a Wealthsimple investment account, such as a TFSA or RRSP, you can contribute to them easily using funds from your savings account.
The Tangerine’s regular savings account is really flexible. It doesn’t require a minimum balance, and there are no fees or service charges. The entire Tangerine banking experience is simple and friendly, and their savings offerings are the same. Account holders can set up an Automated Savings Program online to help plan and meet savings goals.
Simplii’s high-interest savings account gets an honourable mention for its sky-high promotional rate. The special 2.20% rate lasts from Nov. 1, 2021 to April 30, 2022, then it goes back to its regular rate of 0.10%. In May 2022, you’ll receive the interest accrued on the promo rate as a lump sum.
With tiered earnings on interest starting, this product acts like a GIC, giving account holders the opportunity to save more just by leaving their money alone—but with the freedom to make withdrawals if you need to. Provided no debit transactions have taken place during that time; deposits stashed for longer can earn extra interest based on the following calculations:
0.05% +
Plus, if you also have an Ultimate Package account with Scotiabank, your earn rate will be 0.10% for a limited time. The account is no-fee and self-service transfers are unlimited.
Since 2003, Laurentian Bank has been available only in Quebec, but with the recent launch of a new digital offering at LBCDigital.ca, the institution is tempting clients from across the country. The headline news here is the high-interest rate and the fact the account has no minimum balance and no monthly fees, easily topping the best rates of most financial institutions on GICs, which lock in your money for a specified period of time. With the LBC Digital High-Interest Savings Account, you can access funds whenever you like, and frequently used services including electronic fund transfers, pre-authorized deposits, and transfers between LBC Digital accounts are included. This last is important as it means you can move your money to an LBCDigital.ca chequing account, from which you can make unlimited free Interac e-Transfer transactions.
If none of our editors’ picks sound like the right HISA for your exact financial needs, then head to our Savings Account Finder tool to compare the best HISAs in Canada from most Canadian financial institutions side by side.
Compare the Best Savings Accounts in Canada >
A HISA is a savings account that pays a better rate of interest than standard savings accounts. HISAs are offered widely by a variety of banks, credit unions and other financial institutions.
This type of account allows you to safely and securely set aside money and earn a modest return without losing the ability to access that money anytime.
It’s also great for short or medium-term savings that want to be able to withdraw from than later. People will often use a HISA to save for big costs, like a wedding, the down payments on a home, a vacation or for an emergency fund. HISAs are also smart places to stash some money during times of uncertainty or during economic downturns.
The greatest appeal of HISAs is that they are a safe and secure place for savings to grow money slowly. Financial institutions that are members of the Canada Deposit Insurance Corporation (CDIC) insure savings of up to $100,000, while credit unions are insured provincially and usually cover the full deposit, with no limits. Money that is deposited in a HISA account generates interest by allowing the bank to access those funds to loan to others. Interest rates offered by HISA accounts typically vary between rates as low 0.5% and to the 2% range at the upper end. There are usually no monthly service fees associated with savings accounts since they are intended to serve as places for people to park their money for stretches of time. However, it’s not unusual to see the number of withdrawals and transfers limited or to have a fee associated with transactions. (Read more for how CDIC protects you.)
Earnings from a HISA are taxable as income. That means any interest you earn from your savings must be declared and will be taxed at your normal rate. It is, however, possible to shelter your savings from taxes if you hold a HISA within either a TFSA or an RRSP.
The main difference between a standard savings account and a HISA is the interest rate. As suggested by their name, HISAs pay a slightly higher rate than standard savings accounts, allowing savings to slowly grow. They may, however, be subject to withdrawal or transfer limits, transaction fees or minimum balance requirements. A standard savings account is a good place to keep surplus cash that you don’t need for everyday transactions (use a chequing or hybrid account for those needs). A HISA, on the other hand, is a better choice for holding savings that are geared toward a particular goal, such as paying for home renovations or university tuition.
Both Guaranteed Investment Certificates (GIC) and HISAs can be used to save money and earn interest and, indeed, both have their place in a savings plan. The main difference between the two is that when you make a deposit into a GIC, you have to leave it there for a certain amount of time or pay a penalty. The banks can count on having access to your money for a given period (usually GICs are available for terms of six months to ten years), so they tend to pay better interest than HISAs, which are more flexible.
HISAs are a safe and secure place to save money in the shorter term. You earn a higher interest rate than in a regular savings account, but can still access the funds if you need them. Putting your money in a GIC locks it away for a specified time period, but can return a more handsome interest rate. These are suitable for medium- to long-term savings.
Most financial institutions in Canada offer HISAs, and you will want to consider which is the best fit for your needs. First and foremost, you should consider the interest rate. Conventional wisdom states that you want to look for a rate of interest that outpaces the rate of inflation or you will wind up with less buying power than you started with. In recent years the rate of inflation has been about 2%. During recessions, however, we can expect both interest rates and inflation to decrease.
You also want to carefully look at the HISA terms and conditions. Some may require you to keep a minimum balance, charge fees on transactions, limit withdrawals, or enforce lock-in periods.
Look to take advantage of cash signing bonuses or higher promotional rates, but also keep in mind that the long-term interest rate is more important than a short-term introductory rate.
Chequing and savings accounts are two of the many products offered by financial institutions. While they share some similarities, there are a few differences. Generally speaking, chequing accounts are used for everyday banking transactions while savings accounts are designed to help you reach longer-term goals by offering interest on your deposits without monthly fees. As a third option, hybrid accounts are an increasingly popular choice for those seeking the perks and features of chequing and savings accounts in a single package. Let’s take a closer look.
There are different types of savings accounts, each with their own specific terms. But in general, these accounts are where you put money while working towards a financial goal. Savings accounts do not typically have monthly fees, and you are paid interest on your deposits. Depending on the type of savings account you have, you may be able to use the money in it to make everyday purchases but usually you will have to transfer the money into your chequing account first. You cannot write a cheque from a savings account.
As the name suggests, you can write cheques against a chequing account, and you might receive your paycheque into this account as a direct deposit. While writing a physical cheque isn’t as popular as it once was, “chequing” accounts are still around. As they are used for everyday transactions, these accounts are accessible from ATMs, at tellers, online and apps. This type of account is where you store money you intend to spend on routine transactions, including Interac e-Transfer, bill payments, withdrawals, deposits, pre-authorized payments and point-of-purchase payments, like using your debit card at a store.
Hybrid bank accounts combine the interest of a savings account with the flexibility of a chequing account—all for low or no fees. Money in this kind of account earns interest but it can also be accessed for purchases, pay bills, buy money transfers, make Interac e-Transfer transactions and so on. For those who want to simplify how they bank, a hybrid account could be the solution. Note that not all banks offer hybrid accounts, so you may have to shop around.
After reading the above options, you might be wondering what kind of account you have already. The easiest way to find out is to call or visit your bank. Speaking with a banking teller can clarify your current structure and give you the opportunity for help should you want to make a change or move your money.
A standard HISA is a very safe and secure way to squirrel away some money and earn a small amount of interest in the meantime. For medium or long-term savings, Canadians should consider holding their HISA in one of two types of registered plans that will help mitigate the amount of tax you will owe on your interest earnings.
TFSAs are registered with the federal government, like an RRSP. More than just a savings account, a TFSA allows you to invest up to $6,000 per year and not pay any taxes on the earnings. You are free to withdraw the money, tax-free, at any time. The savings plans available within a TSFA may have somewhat lower interest rates than some other HISAs, but could be a better choice after considering the tax savings. (You can also hold other kinds of investments inside a TFSA, such as stocks and ETFs.)
An RRSP is a tax-deferred retirement savings plan, registered with the federal government, that allows Canadians to defer paying taxes on their income until after retirement.
Canadians can defer paying taxes on up to $27,230 this year and instead hold that money in a savings account (or other types of investments, including stocks, bonds and ETFs) within an RRSP where earnings will accrue tax-free as well. When you withdraw the money to use for living expenses in retirement, it’s typically taxed at a lower rate, assuming your income in retirement is lower than when you made the original contribution.
The interest rates on savings accounts fluctuate, sometimes on very short notice. In 2020, for example, there were several rapid changes—mostly on a downward trend. In that case, it’s not hard to understand why. The COVID-19 pandemic threw the world’s economies into disarray, and this was reflected in interest rates. The rates offered by savings accounts are controlled by the prime rate, which is linked to the Bank of Canada’s policy rate.
In times of economic turmoil, the Bank of Canada might reduce its interest rate to stimulate the economy by making it more affordable for people to borrow money. This shift affects your interest rate. In general, the interest rates are high in a strong economy, and they are lower during downturns. Today’s prime rate is 2.45%.
Reductions in the Bank of Canada policy rate might negatively affect your savings account, but they do have benefits. You’ll get a very attractive interest rate when taking on or refinancing a mortgage, for example. The same goes for personal loans. If you’re looking for a good savings rate and can plan to set aside your savings for a certain term, you might consider moving it to a GIC. GICs offer guaranteed interest rates for a given term so needn’t worry about fluctuation.
The rates for GIC, like with many investments, go up and down with the economic environment. Right now the GIC rates are very low, despite the fact that the money is locked in. So, look at GIC rates when deciding what to do with your money. Would you want to tie up your money for the minimal payoff.
Even when the economy is strong, the interest rates on savings accounts tend to be in the low single digits. If you compare this to real estate or stock portfolio returns, you might wonder why you should hold a savings account at all. The thing to understand is that these aren’t comparable products. They’re apples and oranges, each used for different specific reasons.
A savings account is an essential part of everyone’s personal finance portfolio. Why? They are a place to keep your money safe—and liquid!—while earning guaranteed returns. Although these returns tend to be modest, they can help your money grow steadily to combat against inflation. Having a savings account is important if you want a safe way to set aside money in case of emergencies or for an upcoming major purchase, like a car or a down payment on a house. Stocks do well in the long term, but short-terms fluctuations make them unsuitable places to store money for a purchase in the near future because you may well be forced to sell during a downturn. If you’re lucky enough to have real estate, you already know that it is anything but liquid. Savings accounts hit the sweet spot by providing interest, while your money is protected by CDIC or similar deposit insurance coverage, up to specified limits.
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If a link has an asterisk (*) at the end of it, that means it's an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. It's important to note that our editorial content will never be impacted by these links. We are committed to looking at all available products in the market, and where a product ranks in our article or whether or not it's included in the first place is never driven by compensation. For more details read our MoneySense Monetization policy.
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I opened 2 high interest savings accounts for 3 months with different banks in the last year. The interest was NOT COMPOUND, you got the regular low interest then at the end you got the high rate. Why was this allowed?
This article sucked. When hitting the link to the various lending institutions, their rates were not the same as those in the article. I have grown to expect so much more from Moneysence. What gives?
Thanks for letting us know, Mike. Providers are changing their rates rapidly and we are trying to keep up with our content. We will make the necessary updates ASAP.
B2B Bank is an online bank that offers 2.25% effective March 14, 2020 on a high interest savings account. It was 2.80% and before that 3.30% in 2019.
Hello,
Wondering why Bridgewater Bank was not mentioned with their 2.10% interest rate for saving accounts?
I deposited about 10k into an ING rrsp term deposit about 15 years ago. That was my only acct I had with them. Well theyve changed their name and when I tried to take advantage of their promotional rate by opening a savings acct with new company tangerine they wouldnt let me saying I had already been a client with ING. I was pissed.
RBC offers a 90 day 2.25% then 1% for 90 days after that. Not bad for a big boy bank…
Be very careful with scotiabank
They are a bait and switch operator with interest rates based upon my experience,
They provide you with a high rate initially to get your business than lower it to an extremely low rate for examples : from 1 percent to .15 and from 2 percent to .65
When I asked why the rate dropped and also pointed out that they were sending me weekly email offers that adveritized 2.35% for the same momentum account that I had with the bank already- the representative said it was only a promotional campaign to attract new customers and that because I was an existing customer I was no longer eligible for high interest rates.
When I asked what they did to reward loyal customers – the answer was nothing – customer service was more important than providing a good return or a competitive return to long term customers.
However.. the representative could solve my problem by cancelling the promotional emails that I was receiving that advertised the higher rates- Seriously??
Someone needs to hold these banks accountable…
I have banked with Scotiabank for 30 years and I am choosing to end the relationship-
EQ here I come…
Hopefully – articles like this one – who promote Scotiabank
Will also warn customers about how temporary the higher savings rates are and how inflexible the bank is after you join their customer pool
Thank you Christina for your comment on Scotiabank. Their customer service and their account interest are miss leading. I’m happy to see I was not the only one that felt ignored with their offer to new clients. Loyalty to Scotiabank has no reward.
Surprised you didn’t mention Canadian Tire Bank with a current interest rate of 1.8% CDIC covered and a fairly quick ability to transfer. Any reason?
I am surprised that neither Motive Financial, nor Simplii are mentioned. They are (as of Jan 2021) the most competitive on-line banking for HISA, and are super-easy to use.
Be very careful with RBC
They are a bait and switch operator with interest rates based upon my experience,
They provide you with a high rate initially to get your business than lower it to an extremely low rate for examples : from 1 percent to .15 and from 2 percent to .65 with NO notice.
I could find no notice from them that they were about to lower the rate. 9 months of extremely low interest before we noticed.
have banked with them for 30+ years – no customer appreciation – am in the process of switching now
What happened to Tangerine?
This looks like a biased list.
I wonder why Canadian Tire Financial always left out in every website that’s doing comparison of the high interest rate bank? There rate is not bad at all.