Savings comparison tool
Find the best and most up-to-date savings rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated return based on the size of your balance.
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Best high-interest savings account rates in Canada
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 rate is a no-brainer. This type of account is referred to as a high-interest savings account (HISA). We break down what you should know about HISAs and give you our picks for the most competitive interest rates in Canada.
| High-interest savings account (HISA) | HISA rate |
|---|---|
| EQ Bank Personal Account* | 4.00% (Regular rate of 2.25%) |
| EQ Bank Notice Savings Account* | 4.25% with 30 days’ notice (or 4.00% with 10 days’ notice) |
| LBC Digital High-Interest Savings Account | 2.75% |
| Maxa Financial High-Interest Savings | 3.25% |
| Motive Savvy Savings Account | 5.75% for the first 120 days (Regular rate of 3.60%) |
| Neo High-Interest Savings Account | 4.00% |
| Saven Financial High Interest Savings Account | 3.70% |
| Scotiabank MomentumPlus Savings Account | Up to 5.7% for the first 3 months (Regular rate of 1.05%) |
| Simplii Financial High Interest Savings Account | 6.25% for the first 5 months (Regular rate of 0.35% to 4.25%) |
| Tangerine Savings Account | 6.00% for the first 5 months (Regular rate of 0.30%) |
| Wealthsimple Cash | 3.25% to 4.25% (Based on account balance) |
MoneySense insight: How to save $100,000 in a HISA
Saving $100,000 bucks is a popular financial goal. In a recent article, we looked at how long it would take you to save that amount using a 3.5% HISA (which is less that what you can earn with the accounts above!). Someone who makes $60,000 per year and saves 10% of their income per month ($500) would reach the $100,000 milestone in less than 15 years, thanks to compound interest. Read: How to save (and invest) your first $100,000.
—MoneySense editors
Compare the best HISAs in Canada
With tiered interest rates on your savings, this product acts like a guaranteed investment certificate (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:
1.05% (regular interest) +
- 0.65% after 90 days
- 0.65% after 180 days
- 0.75% after 270 days
- 1.10% after 360 days
For the first 3 months after opening the account, you can earn a welcome bonus rate of 3.40% interest on eligible deposits. Plus, if you also have an Ultimate Package account with Scotiabank, your earn rate will be an additional 0.10% for a limited time (or 0.05% for a Preferred Package account). The account is no-fee and self-service transfers are unlimited.
- Minimum balance: None
- Fees for extras: $5 per debit transaction that’s not self-service
- Free transactions per month: Unlimited for self-service transfers
- Interac e-Transfer fee: None
- CDIC insured: Eligible if in Canadian currency with a term of five years or less and payable in Canada
- Other restrictions: No paper statement available
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 regular high 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 with the account. You can also use your Wealthsimple card in-store and online, anywhere Mastercard is accepted, and earn 1% cash back. The card is similar to a credit card but without eligibility requirements, and you can automatically re-invest your cash back rewards or earn them in crypto. If you have a Wealthsimple investment account, such as a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP), you can contribute to them easily using funds from your savings account, which is a fairly rare perk.
- Minimum balance: $1
- Free transactions per month: unlimited
- Interac e-Transfer fee: None
- Fees for extras: None
- CDIC insured: Yes, since January 1, 2021
- Other restrictions: None
Read our review of Wealthsimple Cash.
How we determined the best high-interest savings accounts
The MoneySense editorial team selects the best banking products by assessing the value they provide to Canadians across various categories. Our best high-interest savings accounts ranking is based on an extensive list of features, including interest rates on deposits, welcome offers, transaction fees, monthly fees and CDIC insurance coverage. Our rankings are an unbiased source of information for Canadians. The addition of links from affiliate partners has no bearing on the results. Read more about how MoneySense makes money.
Watch: Why open a high-interest savings account?
What is a high-interest savings account (HISA)?
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 expenses or financial goals, like a wedding, the down payment 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.
How does a high-interest savings account work?
The greatest appeal of HISAs is that they are a safe and secure place for savings to grow money slowly, thanks to compound interest (earning interest on earned interest). Know that 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 deposited in a HISA account generates interest by allowing the bank to access those funds for loans. Interest rates offered by HISA accounts typically vary between rates as low 0.5% and to the 3% 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.
How are high-interest savings accounts taxed?
Earnings from a HISA are taxable income. That means any interest earned 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 difference between a high-interest savings account and a regular savings account
The main difference between a standard savings account and a HISA is the interest rate. As suggested by its name, a HISA pays a slightly higher rate than a standard savings account, allowing savings to grow quicker. It 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 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.
The difference between a HISA and a GIC
GICs and HISAs are safe and secure ways to save money and can be used to earn interest and save money. And both have their place in a financial plan. The main difference between the two financial products is that when you make a deposit into a GIC, you have to leave it there for a certain amount of time or you will 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 10 years), so they tend to pay more interest than HISAs. GICs are suitable for medium- to long-term savings. But HISAs are more flexible and are a great place to save money for a short term. You earn a higher interest rate than in a regular savings account, and you can still access the funds if you need them.
How to choose a high-interest savings account
With so many choices, it can be difficult to know which HISA is best for you. Compare these factors to decide.
- Interest rate: The higher the interest rate, the better for you, but make sure the rate on offer outpaces the rate of inflation—otherwise, your money will gradually be worth less than before, even after factoring the interest gains. According to the Consumer Price Index, the current inflation rate in Canada is 2%. Cash signing bonuses or higher promotional rates are great, but also keep in mind that the long-term interest rate is more important than a short-term introductory rate.
- Service fees: It pays to check whether your HISA charges fees for transactions like withdrawals.
- Conditions: With some HISAs, there are conditions on how much you can withdraw, when you withdraw, or minimum balances.
- Security: Ensure that your deposits are protected against bank failure. Most banks offer Canada Deposit Insurance Protection (CDIC) that typically covers up to $100,000 per account. Some smaller banks and credit unions use a provincial insurer.
How the Bank of Canada’s overnight rate affects high-interest savings accounts
When the Bank of Canada’s overnight rate increases, you can earn higher interest on your deposits in HISAs, because financial institutions face competitive pressure to raise rates. Digital banks, fintech companies and neobanks may offer higher regular interest rates than traditional banks because they do not have to maintain the cost of in-person bank branches. When the overnight rate drops, however, the interest rates paid on savings accounts can drop, too.
What is the current benchmark interest rate?
- On September 4, 2024, the Bank of Canada (BoC) lowered its benchmark rate from 4.5% to 4.25%. The next interest rate announcement will take place on October 23, 2024.
Video: How the Bank of Canada’s interest rate affects you
Is having a savings account necessary?
Even when the economy is strong, the interest rates on savings accounts tend to be low. 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 are used for different 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 typically 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 own real estate, you already know that it is anything but liquid (and can be tough to sell depending on the real estate market). 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.
Didn’t find the perfect savings account here?
If none of our best HISA picks sound like the right one for you, consider putting your money into one of these registered accounts instead.
High-interest TFSA
More than just a savings account, a TFSA allows you to invest up to certain limit each 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 exchange-traded funds (ETFs).)
High-interest RRSP
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. If you plan things right, you will be in a lower tax bracket in retirement, meaning you will pay less tax on your withdrawals than you saved initially by stashing your money inside an RRSP. Like with TFSAs, you can hold a range of investments in your RRSP, including stocks and ETFs).
Frequently asked questions
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