Best Canadian Banks for High-Interest Savings Accounts

Looking to grow your savings without taking on a lot of risk? A high-interest savings account (HISA) could be just what you need. In Canada, many banks and credit unions offer these accounts, but it’s not always easy to figure out which ones are the best. This post breaks down some of the top options for high-interest savings accounts in Canada, to help you make an informed decision about where to keep your money. We’ll explore different banks, interest rates, and what to consider when choosing the right account for your needs.

Top Canadian Banks for High-Interest Savings Accounts

What is a High-Interest Savings Account?

A high-interest savings account (HISA) is a type of savings account that offers a higher annual percentage yield (APY) than regular savings accounts. Unlike some regular savings accounts that might not earn any interest, a HISA ensures your money grows at a higher rate. These accounts are ideal for people who want to grow their savings without the risks associated with investments like stocks or mutual funds. You’ll typically find that online banks and credit unions offer the most competitive rates, as they have lower overhead costs compared to traditional brick-and-mortar banks.

A person in a blue shirt stacking coins into neat piles on a wooden surface, representing savings or financial planning. — Photo by Towfiqu Barbhuiya

Why Choose a HISA?

Higher Returns: HISAs offer significantly better interest rates compared to standard savings accounts.
Safety: Your deposits are typically insured by the Canadian Deposit Insurance Corporation (CDIC) up to $100,000.
Accessibility: Unlike investments like GICs, you can access your money when you need it.
Compound Interest: Interest is calculated daily and added to your principal, which helps your savings grow faster.

Top Banks for High-Interest Savings

Several financial institutions in Canada offer attractive options for high-interest savings accounts. Here’s a look at some of the best:

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

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Manulife Bank’s TFSA Advantage Account stands out with a competitive annual interest rate. It’s designed to mirror the rise in borrowing rates, offering better returns on your savings.

APY: 4.80%
Minimum Deposit: $0
Monthly Fee: $0
Interest is calculated daily and paid monthly.
Deposits are eligible for CDIC deposit insurance.
Existing clients can open an account online; new clients need a licensed financial advisor.
This account is ideal for those looking for high-interest tax-free savings.

EQ Bank Personal Account

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EQ Bank’s Personal Account is a hybrid account that combines the benefits of a savings and chequing account. It offers a competitive interest rate with unlimited everyday banking transactions.

APY: Up to 4.00%
Minimum Deposit: $0
Monthly Fee: $0
Earn 4.00% interest with direct deposit or 1.50% without.
It functions similarly to a chequing account, with all the benefits of a high-interest savings account.
No physical branches.
The EQ Bank Card is not available in Quebec.

EQ Bank Joint Account

This account is similar to the EQ Bank Personal Account but can be shared with up to three people. It maintains all the same features, including a high-interest rate, no fees, and unlimited transactions.

APY: Up to 4.00%
Minimum Deposit: $0
Monthly Fee: $0
Ideal for shared savings goals among family or friends

Neo Financial High-Interest Savings Account

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The Neo Financial HISA offers a straightforward, easy-to-use savings option with no fees or minimum deposit requirements.

APY: 3.00%
Minimum Deposit: $0
Monthly Fee: $0
Deposits are insured by the CDIC up to $100,000.
You can open up to 10 accounts for better organization.
No physical branches or in-person service.
It does not offer bill payment or debit card functions without a Neo Money account.

Oaken Financial Oaken Savings Account

A sign at 145 King Street displaying the logos of Home Trust and Oaken Financial, with a backdrop of tall glass office buildings. — *Photo by David Berman*

Oaken Financial provides a high regular interest rate without introductory periods or promotional constraints.

APY: 3.00%
Minimum Deposit: $0
Monthly Fee: $0
It has very limited branch access.
Offers easy investment into Oaken GICs.

Simplii Financial High Interest Savings Account

Two Simplii Financial cards, one neon green debit card and one black cashback Visa, displayed on the left. On the right, a hand holds a smartphone showing a digital wallet with a Simplii Financial card and other stored cards. — *Photo by glossyinc.com*

Simplii Financial, an online bank owned by CIBC, often offers promotional rates for new clients.

APY: Promotional rates up to 3.9% for the first five months, then 0.30% to 2.00% for eligible deposits.
Minimum Deposit: $0
Monthly Fee: $0
Offers a limited-time promotional interest rate.
Fully insured by the CDIC.
There is also a cashback offer for new credit card customers.

Tangerine Savings Account

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Tangerine is another popular online bank known for its promotional rates for new clients.

APY: Promotional rates up to 4.50% for the first five months, then 0.30% after that.
Minimum Deposit: $0
Monthly Fee: $0
Easy to open and manage online.
Offers a variety of savings options.

Scotiabank MomentumPLUS Savings Account

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Scotiabank’s high-interest savings account is a good option from a traditional bank, offering a premium interest rate for a limited time.

APY: Up to 5.10% promotional rate for three months.
Monthly Fee: $0
After the promotional period, the rate will drop to under 2%.
It offers online savings tools to help you save for different goals.
It is CDIC insured.

CIBC eAdvantage® Savings Account

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CIBC’s high-interest option offers a tiered interest rate.

APY: Up to 5.00% promotional rate.
Monthly Fee: $0
You can earn this higher rate temporarily on balances of up to $1,000,000.
Has access to 4,000 ATMs across Canada, but with transaction fees for withdrawals.
It is CDIC insured.

Saven Financial High-Interest Savings Account

A smiling woman with headphones around her neck holds a smartphone displaying the Saven Financial app, showing account details and savings options. The background features a modern design with purple and pink geometric shapes. — *Photo by savenfinancial.ca*

Saven Financial offers a high regular interest rate with no promotional constraints.

APY: 3.15%.
Minimum Deposit: $0.
Monthly Fee: $0.
Free transfers for withdrawals and deposits.
User-friendly online portal.

Wealthsimple Cash Account

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Wealthsimple offers a hybrid account that functions as both a chequing and savings account.

APY: Up to 3.00%.
Minimum Balance: $1.
Monthly Fees: $0.
Has unlimited transactions with no fees.
Free bill payments and e-transfers.
You can use your Wealthsimple card in-store and online, anywhere Mastercard is accepted.
You can also easily contribute to your other Wealthsimple accounts from this account.

Factors to Consider When Choosing a HISA

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When selecting a high-interest savings account, several factors come into play:

Interest Rate: Look at both promotional and regular rates. Promotional rates can be attractive, but they don’t last forever.
Fees: Check for monthly fees, transaction fees, and other hidden charges. Many HISAs offer no-fee options.
Minimum Balance: Some accounts require a minimum balance to earn the stated interest rate or to avoid fees.
CDIC Insurance: Ensure your deposits are protected by CDIC or a provincial equivalent.
Accessibility: Consider how easy it is to access your funds. Online banks may not have physical branches.
Compounding Frequency: The more frequently interest compounds (daily, monthly), the faster your savings will grow.
Transaction Limits: Check if there are any limits on how many transactions you can do per month before incurring a fee.
Savings Features: Some HISAs offer tools to help you save for different goals.

How to Open a High-Interest Savings Account

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Opening a HISA is straightforward and can often be done online. Here’s what you’ll typically need:

Personal information (name, address, email, phone number, date of birth).
Social Insurance Number (SIN) for tax purposes.
Government-issued photo ID (driver’s license, passport, etc.).
Funding source information (linked bank account).
For joint accounts, both parties will need to provide this information.

Maximizing Your Savings

A woman wearing a beige blazer and red nail polish works at a desk with financial documents, a calculator, a keyboard, and a laptop. She holds a pencil while using the calculator, appearing focused on calculations. — *Photo by Karolina Grabowska*

To make the most of your high-interest savings account:

Set Clear Goals: Determine what you’re saving for to keep you motivated.
Regular Contributions: Make regular deposits, even if they are small, to take full advantage of compound interest.
Automated Transfers: Set up automatic transfers from your chequing account to your savings account to ensure you are consistently saving.
Monitor your account: Regularly review your account to ensure it is still meeting your needs.

Alternatives to High-Interest Savings Accounts

While HISAs are a great option for many, you may want to consider alternatives like:

Tax-Free Savings Accounts (TFSAs): Offer tax-free growth and withdrawals.
Registered Retirement Savings Plans (RRSPs): Provide tax-deferred growth for retirement savings.
Guaranteed Investment Certificates (GICs): Offer a guaranteed rate of return, but your money is locked in for a specific term.
Online Savings Accounts: Similar to HISAs but might offer slightly lower rates.
Regular Savings Accounts: Ideal for parking money that you may not need access to regularly.

Choosing the right high-interest savings account can significantly boost your savings potential. By carefully comparing the various options, considering your financial goals, and looking beyond just the promotional rates, you can make an informed decision and select a HISA that aligns with your needs. Whether you choose an online bank, a credit union, or a traditional bank, be sure to review all the fine print to ensure that the account fits your savings strategy.

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