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Best High-Interest Savings Accounts In Canada For November 2024

Contributor

Updated: Nov 7, 2024, 6:42am

Aaron Broverman
editor

Fact Checked

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.

While ordinary savings accounts are useful for keeping cash available, high-interest savings accounts—meaning those with interest rates of 2.50% and higher—can help you grow your savings.

Higher interest rates sometimes come at the expense of higher fees and reduced features. With that in mind, Forbes Advisor Canada has analyzed dozens of high-interest savings accounts to find the best in Canada. While this comparison is weighted heavily in favour of interest rates, other considerations, like fees, minimums and customer experience, were factored in, too.

For high-interest savings without compromises, keep reading to find the best high-interest savings account in Canada for November 2024.

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The Best Interest Rates on High-Interest Savings Accounts Currently Available in Canada*

  • Tangerine Savings Account – 6%  for five months, then 0.70% after that. (Offer only available to new clients. Must apply by Oct. 31, 2024)
  • Simplii Financial High Interest Savings Account – 6.25% for five months, then 0.40% after that. (Offer only available to new clients. Must apply by Oct. 31, 2024. Limits apply.)
  • 4.20% – Saven Financial  High Interest Savings (Ontario only)
  • 4.10% – Motive Financial Savvy Savings (Not available in Quebec)
  • 4.00% – Neo Financial High-Interest Savings, Wealthsimple Cash Account, Wealth One Bank of Canada High-Interest Savings, EQ Bank Personal Account, EQ Bank Joint Account
  • 3.70% – Canadian Tire Bank High-Interest Savings (Not available in Quebec)

*Current as of August 1, 2024.


Best High-Interest Savings Accounts In Canada For 2024

We’ve compared 123 savings accounts at 19 nationally available banks and credit unions to find some of the best high-interest savings options available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of February 27, 2024.


Best For High-Interest Tax-Free Savings

Manulife Bank Tax-Free Savings Account: The TFSA Advantage Account

Manulife Bank Tax-Free Savings Account: The TFSA Advantage Account
4.9
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

APY

2.10%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Manulife Bank Tax-Free Savings Account: The TFSA Advantage Account

APY

2.10%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Why We Picked It

As  interest rates for borrowing have risen recently, the Manulife Bank Tax-Free Savings Account leads the way when it comes to mirroring that rise in your savings.

This account comes with a decent APY of 2.10% and also boasts a lack of fees: it has no setup fees, no monthly maintenance fees and no transaction fees. In fact, the services and fees page on Manulife’s website frankly states, “We don’t charge any fees for our TFSA Advantage Account.”

As with all TFSA accounts, there’s no tax on any investment income you earn. However, contribution limits and withdrawal rules apply.

Pros & Cons
  •  interest rate of 2.10%.
  • Earns tax-free interest.
  • No minimums or fees.
  • Only available through licensed financial advisors or to existing Manulife Bank customers.
Details
  •  2.10% annual interest rate
  • 3.40% variable annual promotional rate.
  • Interest is calculated daily and paid monthly from December 1, 2023 to April 30, 2024 on net new deposits to the account received from December 1, 2023 to March 15, 2024 to a maximum of $250,000. The offer and rates are as at December 1, 2023 and subject to change without notice.
  • Existing Manulife Bank clients can open an account online; new clients can open an account through a licensed financial advisor.
  • No minimum deposit.
  • No monthly fee.
  • No transaction fees.
  • TFSA contribution limits apply.
  • Deposits are eligible for CDIC deposit insurance.

Best For High-Interest on a Hybrid Account

EQ Bank Personal Account

EQ Bank Personal Account
4.7
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

APY

Up to 3.75%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

EQ Bank Personal Account
Learn More

On EQ Bank's Website

APY

Up to 3.75%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Why We Picked It

This no-fee bank account offers a competitive interest rate that trumps what most big banks can offer. Plus, with unlimited everyday banking transactions and the ability to link it to the EQ Bank Card in every province but Quebec, it can basically function like a chequing account, even though it has “savings” in its name.

Learn more: Read our EQ Bank Personal Account Review

Pros & Cons
  • Earn 3.75% interest on your balance when you set up direct deposit for your paycheques
  • Earn 2.00% interest on your balance if you do not set up direct deposit
  • No monthly maintenance fees or minimum deposit requirement
  • Unlimited everyday banking transactions
  • All the flexibility of a chequing account, but with interest
  • Easily links to other accounts, with EQ or another bank
  • No brick-and-mortar locations of EQ Bank
  • Must set up direct deposit for your paycheques to earn 3.75% interest
  • EQ Bank Card unavailable in Quebec
Details
  • Earn up to 3.75% interest on your savings
  • No monthly maintenance fees
  • No minimum deposit requirement
  • Unlimited everyday banking transactions such as Interac e-Transfers, bill payments and electronic funds transfers.
  • Easily links to other accounts, with EQ or another bank, except in Quebec where EQ to EQ account transfers are unavailable.
  • All deposits are eligible for CDIC protection

Best For High-Interest Savings Account For Up to Three People

EQ Bank Joint Account

EQ Bank Joint Account
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

APY

Up to 3.75%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

EQ Bank Joint Account
Learn More

On EQ Bank's Website

APY

Up to 3.75%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Why We Picked It

This account is essentially a carbon copy of the EQ Savings Plus Account above. It boasts all the same features: up to 3.75% interest, no fees and unlimited transactions. However, the difference is it can be shared with up to three people.

Learn more: Read our EQ Bank Joint Account Review

Pros & Cons
  • Earn up to 3.75% interest on your savings
  • Ability to share account with up to three people
  • No monthly maintenance fees or minimum deposit requirement
  • Unlimited everyday banking transactions
  • All the flexibility of a chequing account, but with interest
  • Easily links to other accounts, with EQ or another bank
  • Not the highest amount of interest offered by EQ bank
  • No brick-and-mortar locations of EQ Bank
Details
  • Earn up to 3.75% interest on your savings
  • Ability to share account with up to three people
  • No monthly maintenance fees
  • No minimum deposit requirement
  • Unlimited everyday banking transactions such as Interac e-Transfers, bill payments and electronic funds transfers.
  • Easily links to other accounts, with EQ or another bank, except in Quebec where EQ to EQ transfers are unavailable.
  • All deposits are eligible for CDIC protection

Best For Easy High-Interest Savings

Neo High-Interest Savings Account

Neo High-Interest Savings Account
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

APY

3.00%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Neo High-Interest Savings Account
Learn More

On Neo’s Secure Website

APY

3.00%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Why We Picked It

The Neo Financial High-Interest Savings Account can be opened in minutes and has no fees or minimum deposits with a 3% interest rate on every dollar deposited. Not only that, but because this account is provided through Neo by the Peoples Bank of Canada deposits are insured up to $100,000 by the Canada Deposit Insurance Corporation (CDIC).

Pros & Cons
  • 3% interest on every dollar
  • Deposits are insured by the CDIC
  • No fees
  • No minimum deposits
  • Instant transfers between accounts
  • Open up to 10 accounts to organize your money
  • No branches or in-person customer service
  • No bill payment or debit card functions without also opening a Neo Money account
  • High interest rate may not last
Details
  • 3% interest on every dollar
  • Deposits are insured by the CDIC up to $100,000
  • No fees
  • No minimum deposits
  • Instant transfers between accounts
  • Open up to 10 accounts to organize your money
  • Personalize your savings with account names, icons and goal amounts

Best For Non-Promotional High-Interest Savings

Oaken Financial Oaken Savings Account

Oaken Financial Oaken Savings Account
4.2
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

APY

3.40%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Oaken Financial Oaken Savings Account

APY

3.40%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Why We Picked It

Oaken Financial is one of Canada’s best kept secrets when it comes to personal savings. The Oaken Savings Account features a high regular interest rate of 3.40% that’s not limited by any introductory periods or promotional constraints. There are no fees of any kind and no minimum balance requirements.

In addition to its savings account, Oaken also offers some of the best GIC rates in Canada. When you use your Oaken Savings Account to invest in Oaken GICs, you can elect to have matured balances or interest paid to your savings account, so your investments won’t stop earning interest.

However, banking in person may be a challenge as Oaken Financial has just four branches, located in Vancouver, Calgary, Toronto and Halifax.

Pros & Cons
  • High regular interest rate of 3.40%.
  • Unlimited free transactions.
  • Easily invest in Oaken’s market-leading GICs.
  • Extremely limited access to in-person service.
  • The required choice of issuing institution between Home Bank and Home Trust Company causes confusion.
Details
  • Earn 3.40% interest on all deposits.
  • Interest calculated daily, paid monthly.
  • No minimum deposit.
  • No monthly fee.
  • No transaction fees.
  • Deposits are eligible for CDIC deposit insurance.
  • Access double CDIC deposit insurance coverage by spreading investments across two issuers.
  • When opening an account, you’ll be asked to choose between Home Bank and Home Trust Company as the issuing institution. There’s little consequence to this decision unless your deposits exceed $100,000 and you’re concerned about CDIC insurance. They’re separate institutions where CDIC is concerned. So you can have $100,000 in one account and $100,000 in the other and get full CDIC coverage on both.

Best For High-Interest, Tax-Free Everyday Savings

EQ Bank TFSA Savings Account

EQ Bank TFSA Savings Account
4.2
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

APY

2.50%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

EQ Bank TFSA Savings Account
Learn More

On EQ Bank's Website

APY

2.50%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Why We Picked It

If you’re looking for the easiest way to get started with tax-free savings, EQ Bank has you covered. You can open an account online in minutes and start earning 2.50% interest on your deposits right away. There are no fees of any kind, no minimum deposits and no fine print on the interest rate.

While you won’t pay extra for transfers to and from other banks, it makes sense to pair this account with EQ Bank’s everyday banking solution. Forbes Advisor Canada has named The EQ Bank Savings Plus Account one of the best chequing accounts in Canada for its great features and complete lack of fees.

Under the banner of the tax-free savings account, interest earned in this account is exempt from income tax. Keep in mind that contribution limits and other rules still apply.

Learn more: Read our EQ Bank TFSA Review

Pros & Cons
  • A high regular interest rate of 2.50%.
  • Earn interest tax-free.
  • No minimums or fees.
  • No access to in-person service.
Details
  • Earn 2.50% interest on all deposits.
  • Interest calculated daily, paid monthly.
  • No minimum deposit.
  • No monthly fee.
  • No transaction fees.
  • TFSA contribution limits apply.
  • Deposits are eligible for CDIC deposit insurance.

Here’s a Summary of Best High-Interest Savings Accounts In Canada


Bank/Credit Union Forbes Advisor Rating Minimum Deposit Requirement Monthly Maintenance Fee Excess Transaction Fee
Manulife Bank Tax-Free Savings Account
$0 $0 $0
EQ Bank Personal Account
$0 $0 $0
EQ Bank Joint Account
$0 $0 $0
Neo Financial High-Interest Savings Account
$0 $0 $0
Oaken Financial Oaken Savings Account
$0 $0 $0
EQ Bank TFSA Savings Account
$0 $0 $0

Methodology

To create this list, Forbes Advisor analyzed 123 savings accounts at 39 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 17 data points within the categories of fees, access, customer experience, digital experience, annual percentage yield, plus the minimum deposit and balance needed to avoid the monthly fee.

The following is the weighting assigned to each category:

  • APY: 70%
  • Fees: 10%
  • Customer experience: 5%
  • Digital experience: 5%
  • Minimum Deposit: 5%
  • Minimum Balance to avoid monthly fee: 5%

Specific characteristics taken into consideration within each category included monthly fee, ability to waive the monthly fee, overdraft fee, NSF fee, other fees, ATM network, branch access, Better Business Bureau rating, Trustpilot rating, live chat availability, mobile app ratings, online bill pay availability, online banking access, minimum deposit requirements and minimum balance requirements.

Savings accounts offering no or very low fees scored the highest, as did those offering low minimum requirements and high annual percentage yield, customer service and digital experience scores. To appear on this list, the savings account must be nationally available.


Banks We Monitor

Our research is based on information from the following financial institutions: RBC, TD, BMO, National Bank, CIBC, Scotiabank, UNI Financial, Canadian Western Bank, Coast Capital Savings, Digital Commerce Bank, EQ Bank, First Nations Bank of Canada, Laurentian Bank, Manulife Bank, Motus Bank, Peoples Bank of Canada, Simplii Financial, Tangerine Bank, VanCity, VersaBank, HSBC, ICICI Bank Canada, SBI Canada Bank, CTBC Bank, Bank of China (Canada), KEB Hana Bank Canada, Shinhan Bank Canada, Meridian Credit Union, Servus Credit Union, Envision Financial, Steinbach Credit Union, Affinity Credit Union, Prospera Credit Union, Conexus Credit Union, ConnectFirst Credit Union, Access Credit Union, Assiniboine Credit Union.


More High Interest Savings Rates


Bank/Credit Union Account Rate TFSA Rate Availability
Alterna Financial High Interest eSavings 2.25% 2.25% National
Achieva Financial Achieva Savings 3.60% 3.60% National
Bridgewater Bank Smart eSavings 3.60% None Not in Quebec
Canadian Tire Bank High Interest Savings 3.70% 3.70% Not in Quebec
Hubert Financial Happy Savings 3.60% 3.65% Not in Quebec
Ideal Savings Ideal Savings 3.60% 3.65% Not in Quebec
MAXA Financial MAXA Savings 3.55% 3.55% National
Motive Financial Motive Savvy Savings 4.10% 4.10% Not in Quebec
Motusbank High Interest Savings 2.50% 2.50% Not in Quebec
Outlook Financial High Interest Savings 3.60% 3.60% National
Peoples Bank** e-Savings 3.40% 3.40% National
Saven Financial High Interest Savings 4.15% 4.15% Ontario Only
Wealth One Bank of Canada High Interest Savings 4.00% 4.00% Not in Quebec
Wealthsimple Cash 4.00% None National

What is a High-Interest Savings Account?

A high-interest savings account or HISA (also known as a high-yield savings account) is a savings account that offers a high annual percentage yield (APY) on the money within, so that your savings are always generating a high rate of interest. Other savings accounts may not generate interest at all or may only generate a nominal amount, (as little as 0.01%) while high-interest savings accounts will give you an APY of 2.50% or higher. You will typically find high-interest savings accounts offered by online, branchless banks or credit unions because they don’t have the same expenses and overhead as Canada’s Big Five Banks or other brick and mortar financial establishments, so they can pass on the savings on to their customers in the form of a higher than average interest rate.

HISAs vs. TFSAs

All income generated from the interest rate on a high-interest savings account (HISA) is taxable as income, but deposits and withdrawals, whether placed in an interest-bearing investment vehicles or not, are not taxed when coming from or going into a tax-free savings account (TFSA) up to the account holder’s individual annual contribution limit.

HISAs vs. RRSPs

While all investment growth generated from a high-interest savings account (HISA) is taxed as income, the contributions made to a registered retirement savings plan are not taxed on deposit up to the account holder’s annual contribution limit, but they are taxed on withdrawal. You can deposit or withdrawal money from a HISA at any time, while an RRSP requires you to stop making contributions by the last month of the year you turn 71 and convert the account into a Registered Retirement Income Fund (RRIF).

HISAs vs. Chequing Accounts

While high-interest savings accounts offer at least a 2.50% APY, very few chequing accounts offer interest on balances at all in Canada. It’s just as well, since a chequing accounts are meant to be used to pay your bills and take care of your various everyday transactions, while savings accounts are meant to be a place where you store your money for your long-term savings goals or for a financial emergency.

HISAs vs. GICs

While HISAs do offer higher APYs than what other savings accounts may give you, their interest rates don’t beat those of Guaranteed Investment Certificates (GICs). However, in exchange for a higher guaranteed stable interest rate, you must lock your savings into a GIC for at least one to five years. Term deposits operate similarly, but have a shorter minimum time horizon of 30 days to five years. Canadians find GICs attractive because they are lower risk than other investments, such as stocks or mutual funds, so you will get a guaranteed return on investment as long as you don’t need access to your money over the duration of the term specified. People who prefer HISAs want a high APY, but also want to be able to transfer their money from the HISA if they need to. A GIC doesn’t give you that option over the span of the investment.

Related: GIC vs. HISA: How To Choose

HISAs vs. Regular Savings Accounts

While regular savings accounts often are just a place to park your money while your saving for the future — either generating very little interest on your contributions or no interest at all, high-interest savings accounts do generate a high amount of interest allowing your money to compound over time and generate even more money than your initial investment. To encourage saving and not spending, high-interest savings accounts usually have minimum balance requirements that require you to maintain a certain monetary balance to avoid monthly fees. They also carry a number of transaction fees to deter you from moving money out.

Learn more: What Is A High-Interest Savings Account?


How Does a High-Interest Savings Account Work?

High-interest savings accounts (HISAs) work the same as traditional savings accounts, except they typically earn higher interest rates and carry lower or no monthly fees. Common features of high-yield and traditional savings accounts include CDIC protection up to $100,000 and transaction limits.

High-Interest Savings Account Rules

While there are no explicitly stated rules associated with a high-interest savings account, in exchange for a high APY you may need to maintain a minimum balance or pay a regular fee, but whether you have to do both of those things at all and what those fees or that minimum balance amounts to, depends on the account you choose.

How Do High-Interest Savings Accounts Earn Interest?

High-interest savings accounts grow using compound interest calculated daily. Compounding interest is the daily interest earned and then added to the principal amount of money you put into the account. The interest is then calculated based on the principal amount plus the interest earned over the previous days, so the account holder is earning interest on their interest. Therefore, if you have a principal amount of $1,000, but you make no regular contributions in addition to that and you have an APY of 2.5% with interest calculated daily, by the end of the year you will have $1,025.31 in your account. The best high-interest savings account in Canada offers an APY of 5.50%. If nothing else changed and that was your APY, by the end of the year you would have $1,056.54. Now, if you contributed just $100 every month to your $1,000 with the 5.50% APY, by the end of the year you’re looking at $2,290.05–over double your initial principal investment. Try this exercise yourself and adjust your principal investment, your contribution amount, how frequently you make it, your APY and how often it is calculated using Forbes Advisor’s Compound Interest Calculator.

High-Interest Savings Account Investments

While you can deposit straight up cash into a high-interest savings account. There are often companion options for registered accounts like RRSPs and TFSAs that also offer high interest rates. You can also choose to forgo a high-interest savings account all together in favour of an investment option that may give you even more interest, such as a GIC, term deposit, GIC, stock, bond or mutual fund. Each of these investment types carry a different level of investment risk depending on what you invest in and your overall time horizon for investment maturity. They are also able to be put inside a registered account, so they will get all the tax and/or matching benefits that come with that.

High-Interest Savings Account Taxes

Interest earned on a high-interest savings account is considered taxable. The bank will send you a T5 at the end of every tax year and that must be submitted when you file your taxes with the CRA. The only exception is if your high-interest savings account is a registered account where taxes may be deferred until you withdraw the funds, like with an RRSP, tax-free all the time, like with a TFSA or RDSP, or taxable when paid out to the beneficiary, like with an RESP.


Who Should Open a High-Interest Savings Account?

Good candidates for a high-interest savings account have money to invest, are able to make contributions to their savings either daily, weekly, monthly or quarterly to help the growth of their investment along, still need access to their money all the time and want to see growth on their initial investment that’s more than nominal and happens automatically thanks to compounding interest. If you like the idea of the money in your savings account growing at a stable rate without you having to make any kind of contribution, but you need access to your money and can’t afford to keep it locked in a GIC for a specified term, then a high-interest savings account may be for you.


How to Open a High-Interest Savings Account

You can open a high-interest savings account relatively quickly. Once you’ve found an account that matches your needs, you’ll need to fill out an online application. The bank may ask for this specific information to verify your identity during the application process:

  • Name
  • Address
  • Email address
  • Phone number
  • Date of birth
  • Social Insurance number  (SIN)
  • Number from your driver’s license or other government-issued photo ID
  • Funding source account information
  • If you’re opening a joint account, both parties will need to provide personal and financial information.
  • Once the account is approved, you can fund it using a linked bank account or other acceptable methods.

How to Use a High-Interest Savings Account

Because of their earning potential, high-yield savings accounts are excellent for reaching savings goals. Having a specific account for savings goals allows you to keep those funds separate from your everyday spending account. You can use a high-yield savings account to save for a variety of goals, including:

  • An emergency fund
  • Upcoming vacations
  • A wedding
  • Home renovations
  • Home furnishings
  • A down payment on a home
  • A new car
  • Educational expenses

High-interest savings accounts are ideal for short-term financial goals, but they’re not good for holding your retirement savings. A registered account, like an RRSP or TFSA, typically offers better returns and tax savings not found with regular high-interest savings accounts.

Large Expenses

High-interest savings accounts can be used to save for a variety of large expenses. Some of the goals you might save for include:

  • A down payment on a home
  • Home renovations or repairs
  • A new car or recreational vehicle
  • Wedding expenses
  • New furniture

You could also use a high-interest savings account to hold your emergency fund. Emergency funds are generally best kept in an account that’s liquid and easily accessed, in case you need money quickly.

Education

A high-interest savings account is something you might consider if you want to set aside money for education expenses. Some of the expenses you could save for include:

  • Private school tuition and fees for elementary, middle or high school students.
  • Extracurricular costs, such as band instruments, travel expenses for competitive sports or class trips.
  • College tuition and fees
  • In-school living expenses, such as meals or rent

If you specifically want to save money for college, you might consider an RESP in place of a high-interest savings account. With an RESP, you can invest money for your dependent’s post-secondary education, get your contributions matched by the federal government and withdraw it for qualified educational expenses when the beneficiary becomes a student  at a qualifying post-secondary institution and likely won’t be paying taxes anyway.

Vacation

High-interest savings accounts are also an attractive place to save money for vacations or travel. You might use a high-interest account to save for:

  • Flights
  • Hotel or resort stays
  • Local transportation
  • Meals
  • Souvenirs
  • Entry fees for attractions or experiences

You could use a travel rewards credit card to pay for those expenses and potentially earn some money back in the form of travel miles or points. However, if you end up carrying a balance month to month, your credit card’s APR could wipe out the value of any rewards you earn.

If you’d rather earn interest than pay it, you might be better off saving for vacation plans with a high-interest savings account instead.


How to Choose a High-Interest Savings Account

Choosing the best high-yield savings account isn’t always obvious, so comparing accounts will help you find the best option. Here are some factors to consider before opening an account.

Reputation and Security

Pick a bank or credit union you feel comfortable with that has a solid foundation and a great, stable reputation. This will likely lead to the most important component which is making sure the bank or credit union you choose is insured so if the bank becomes insolvent, your investment is covered up to $100,000.

Financial Goals

You’ll also need to think about why you’re opening an HISA in the first place. What are you actually saving for? This will dictate your timeline and determine the interest rate that you’ll be looking for and how high it needs to be for you to reach your goals in the timeframe you have in mind. To that end, you’ll also need to make sure you’ll still be able to access your account when you meet your goal.

Interest Rate

Perhaps the most important factor when choosing a high-interest savings account is the interest rate. Earning a higher interest rate will help you maximize your savings more quickly.

Deposit Requirements

Some accounts require certain minimums for a new account. You may need to maintain a specific balance to earn interest or avoid monthly fees.

Account Fees

Fees can cancel out interest earned on your savings. Check the account’s fee schedule to determine if you’ll be charged a monthly service fee or other fees. Some banks will waive fees if you keep a certain amount in your account.

Compounding Frequency

Interest on a savings account can compound daily, weekly, monthly, quarterly or annually, depending on the bank. When interest compounds, you earn interest on your interest. Choosing an account that compounds more frequently can help you earn more interest over time.


How Does the Bank of Canada's Overnight Rate Affect Interest Rates on HISAs?

When the Bank of Canada’s (BoC) overnight interest rate rises, the prime rate follows suit at Canada’s banks. Once that happens, you can expect interest to rise according to the prime rate on all interest-bearing investment products and you can take advantage when the interest rises on your HISA. Conversely, if the BoC cuts rates and the overnight rate goes down, so too does the prime rate, which will reduce the amount of interest you can earn on an HISA.


High-Interest Savings Account Alternatives to Consider

  • Savings accounts
  • Online savings accounts
  • Tax-free savings accounts (TFSAs)
  • Registered retirement savings plans (RRSPs)
  • Guaranteed investment certificates (GICs)

Frequently Accessed Questions (FAQs)

What are the best banks for savings accounts?

The best banks in Canada for savings accounts are the ones that pay the best everyday rates of interest and charge the lowest fees. These include Manulife Bank, EQ Bank, Oaken Financial, and Alterna Bank.

Are savings accounts free?

While most savings accounts in Canada don’t charge monthly fees, some charge transaction fees as high as $5. The Oaken Savings Account and Alterna Bank High Interest eSavings Account are two examples of savings accounts with no monthly fees and no transaction fees.

How old do you have to be to open a savings account?

There are no age restrictions on savings accounts in Canada and some youth accounts are even available to newborns. Children as young as 12 may be able to open a savings account on their own, as long as they’re able to provide adequate ID.

How do I get a savings account bonus?

Look for savings accounts that offer promotional interest rates or welcome offers. Keep in mind, you’re usually better off in the long run with a high regular interest rate than a promotional interest rate that ends after the first few months.

Where can I find my savings account number?

You can find your savings account number on your monthly statement, or through your online or mobile banking portal.

How can I close a savings account?

You can close a savings account over the phone or in-person at a branch. You’ll need to ensure there’s enough money in the account to cover any fees that may apply, and you’ll need a way to take any remaining balance with you.

Do savings accounts earn interest?

Most, but not all, savings accounts in Canada earn interest. To get the best return on your savings, look for a savings account that pays a high interest rate of at least 2.5% and that won’t cut into your savings with high transaction fees.

How much can I earn in interest on a savings account?

The best savings accounts in Canada currently pay up to 4.50% interest, calculated daily and paid monthly. With compounding, savings of $1,000 can earn as much as $45.49 in interest over the course of a year.

Related: Compound Interest Calculator

What is an annual percentage yield?

Annual percentage yield, or APY, refers to the interest rate paid by a bank to a savings account holder on deposits for one year. For example, a $100 deposit earning 1% APY would earn $1 in interest over the course of a year.

Are savings accounts safe?

Savings accounts in Canada are very safe. The Canadian Deposit Insurance Corporation protects savings up to $100,000 in the event your participating bank becomes insolvent. Take reasonable precautions to protect your savings account from theft, like using complex passwords and enabling two-factor authentication for online banking.

What Canadian bank has the highest savings interest rate?

While Tangerine Bank is currently offering 5.75% interest when you open a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA), this is only a promotional rate. The best regular high-interest savings account that is consistently available is the Manulife Bank Tax-Free Savings Account: The TFSA Advantage Account, which offers an interest rate of 5.50% and no fees.

Is a GIC better than a high-interest savings account?

Whether you believe a GIC is better than a high-interest savings account (HISA) depends on your savings goals. You’re likely to get a higher interest rate with a GIC than you can on a regular high-interest savings account, but you’ll have to lock your money away for the entire term of your GIC before it reaches maturity and you can cash in on the full interest rate. On the other hand, a high-interest savings account allows your investment to be more liquid because there’s no restriction on moving your money at any time.


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