Compare interest rates online

Looking to compare interest rates while looking for your next savings account? Keeping your savings in an account with a high APY is the easiest way to increase your funds, and the most competitive interest rates come from banks you can’t visit. Learn more in our interest rate comparison guide.

How do interest rates impact me?

There are 2 types of interest rates:

• APY. Annual percentage yield is the amount you earn per year on your savings. A high APY will help your savings grow year over year.
• APR. Annual percentage rate is the amount you pay on debt. A low APR will help you save money on your mortgages or loans.

Bank of Canada interest rate forecast

What’s the difference between APR and APY interest rates?

Knowing the meanings of the most common terms you’ll come across when making financial decisions can help you make the most of your money:

• APR. This is the bad kind of interest. APR stand for annual percentage rate, and it’s the amount of interest you have to pay each year. To save the most money, look for loans and credit cards with a low APR.
• APY. This is the good kind of interest. APY stands for annual percentage yield, and it’s the amount of interest that gets paid to you each year. To earn the most money, look for savings accounts and investments with a high APY.

What are the different types of interest rates?

There are 2 main types of interest rates — fixed and variable. They can apply to either APR or APY interest rates.

• Fixed interest rates. This is a set interest rate that is essentially “locked” for the duration of your loan term. The rate you agree to in your loan contract is guaranteed to remain in place until you close the loan at the end of the term.
• Variable interest rates. This is a rate that may change during your loan term and may be more common in some products than others. For example, personal loans can come with variable interest rates, but it’s unlikely for the rate to change during the loan term. On the other hand, it’s much more likely that a mortgage with a variable rate will change.

Interest rates from banks vs. credit unions

Banks are for-profit businesses, while credit unions operate as nonprofits. A credit union is owned by its members, who may have something in common (for examples, teachers or retired military members) or who may simply all be members of the financial institution.

While this can sometimes mean more competitive interest rates, both on savings products and loans, that isn’t always the case. Large credit unions can operate like big banks, using high loan rates to help pay for growing overhead costs. Smaller credit unions can use money earned from interest to give back to the community rather than sharing it with members — making them altruistic, but not financially competitive.

Find out how much you can earn with our savings calculator

Compare interest rates from these savings accounts

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Name	Product	Promo Rate	Regular Interest Rate	Monthly Account Fee	Transaction Fee	e-Transfer Fee	Offer
EQ Bank Savings Plus Account		N/A	2.50%	$0	$0	$0		Go to site View details	Compare	loading Fetching your data...
Simplii High Interest Savings Account		5.25% for 5 months	0.40%	$0	$0	$0		Go to site View details	Compare	loading Fetching your data...
Neo Money Account		N/A	2.25%	$0	$0	$0	Earn 2.25% interest on your balance + get up to 15% cashback on first-time purchases with your Neo Money card.	Go to site View details	Compare	loading Fetching your data...
KOHO Save		N/A	2.00%	$0	$0	$0	Use promo code FINDERCODE and get a $20 cash bonus when you make your first purchase within 30 days.	Go to site View details	Compare	loading Fetching your data...
National Bank High Interest Savings Account		N/A	1.50%	$0	$0	$0		Go to site View details	Compare	loading Fetching your data...

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How to interest rates compare?: Brick-and-mortar banks vs. online banks

Online banks tend to have the most competitive interest rates, but you don’t get the same personalized service you would in a branch. All reputable online banks will have a number you can call for help, but it’s usually not as convenient as being able to walk into a branch.

The Big Five

TD Canada Trust, CIBC, RBC, BMO and Scotiabank are collectively known as the “Big Five” because they’re the largest and most recognizable banks in the country. If you live in a metropolitan area, each of these banks probably have a branch within a kilometre at least, making them the most accessible option.

When it comes to interest rates, though, they can be the least competitive. Savings accounts and Guaranteed Investment Certificates (GICs) at Big Five banks generally have APYs at or below the national average. Loan rates are similarly unfavourable when compared to alternative digital banks. Here are some examples of rates for popular products:

Online banks

Online banks like EQ Bank, Tangerine and motusbank generally have some of the highest interest rates — often by a long shot. You can’t walk into a branch for help, but the trade-off is that you can earn significantly more on savings accounts and GICs. And loan rates are often more competitive, too.

Credit Unions

Like major banks, virtually all major credit unions provide a hybrid of both in-person and online banking options. This gives you the security of visiting brick-and-mortar branches to deal directly with bank representatives as well as the freedom and 24/7 convenience of banking online. Credit unions often have interest rates that are competitive, if not better, than traditional banks. Here are some examples of rates for popular products:

Bank savings accounts promotions on now

• RBC High Interest eSavings Account: First-time RBC High Interest eSavings account holders can earn 5% interest for 3 months on balances up to $1,000,000. Valid until July 31, 2023.
• RBC Leo’s Young Savers Account: Get up to $25 in value when you open an RBC Leo’s Young Savers Account for your child. Apply by June 30, 2023.
• Scotiabank MomentumPLUS Savings Account: With the MomentumPLUS Savings Account, you can earn a savings rate of up to 5.00% for 5 months.
• CIBC eAdvantage Savings Account: Get a Smart Interest of 0.50% on balances up to $200,000 when you save $200 or more in a month (limits apply)
• Tangerine Savings Account: Sign up using promo code EARNMORE and earn up to $400 cash back and a 5.00% savings rate. Valid until July 17, 2023.
• Tangerine TFSA: Sign up using promo code EARNMORE and earn up to $400 cash back and a 5.00% savings rate. Valid until July 17, 2023
• Tangerine RSP: Sign up using promo code EARNMORE and earn up to $400 cash back and a 5.00% savings rate. Valid until July 17, 2023
• Vancity Jumpstart High Interest Savings Account: Get a 4.80% promotional rate on the Jumpstart High Interest Savings account until June 30, 2023. Eligible on new deposits only. Conditions apply.

How is interest charged on different financial products?

Interest works differently depending on the type of product you have:

Credit cards

Credit cards come with variable, annual interest rates. The rates vary depending on what features the card offers, but the average card falls somewhere between 15% and 22% APR. If you have excellent credit, you can qualify for a lower rate. If you have a low credit score, expect to pay on the higher end of that spectrum — or more.

There are 2 types of interest rates on a credit card: purchase rate and cash advance rate. The purchase rate is what you’re charged to make purchases on the card and the cash advance rate is what you’re charged to withdraw cash using the credit card. Credit cards can also offer special interest rates such as introductory 0% rates or balance transfer rates.

Personal loans

Interest rates on personal loans can be fixed or variable and are annual rates. In the past, these rates reflected the market at the time. However, lenders have been moving towards personalizing interest rates based on how risky it is to offer the loan.

This is why there are now 2 types of interest rates you’ll see advertised for personal loans: set rates and risk-based rates. Set rates will be given to everyone who is approved for a personal loan by that lender. Lenders offering risk-based interest rates will do so using a range — 7% to 18% APR, for example — and your exact rate will depend on your credit score and job stability. You can typically get a rate estimate before applying for a loan.

Mortgages

Mortgage interest rates can also be fixed or variable. Fixed interest rates are guaranteed not to change, whereas variable rates may fluctuate. Variable interest rates can change quite frequently, as they’re heavily influenced by the economy.

The interest you’re charged will generally be calculated daily. Mortgages can either be principal and interest — meaning you’re repaying both the interest you’re being charged and the original amount you borrowed — or interest-only. With the latter, you’re only repaying the interest accruing on your debt.

Savings accounts

Savings accounts work differently from credit accounts because the interest rates earn you money rather than cost you money. All savings accounts come with a variable base rate, with most calculated daily on your principal balance and paid into your account monthly. This is referred to as compound interest: the interest payments you earn then go on to earn their own interest. Guaranteed Investment Certificates (GICs) and other savings options work similarly, though GICs offer fixed interest rates.

Guaranteed Investment Certificates (GICs)

How should I compare interest rates?

Keep the following in mind when comparing interest rates:

• The actual rate. Look at how competitive the interest rate is when comparing. While the cheapest isn’t necessarily the best, a better interest rate can do a lot to save you money in the long run.
• Fees. Check for any fees that the account or loan has, including upfront and ongoing fees. If you find an option with a competitive interest rate but sky-high fees, calculate whether it’s still the best option.
• Apples-to-apples. While comparing interest rates across products is a good idea, make sure the products you’re comparing are similar. For example, you might compare one credit card to another one with a much lower interest rate, but no added benefits or features.

What are negative interest rates?

Since the Global Financial Crisis (GFC) the world’s understanding of finance has changed rapidly. One idea that has emerged from the GFC is implementing negative interest rates. Negative interest rates are incentives for banks. The bank holds reserves and these are taxed by the negative interest rate, so the bank has higher incentives to lend out its reserves.

A few countries have stopped using zero interest rate policies (ZIRP) and have adopted negative interest rate policies (NIRP) instead. Switzerland was one of the first countries to implement NIRP in the 1970s in an attempt to deter a flood of foreign investment.

Following the 2008 recession, Sweden was the first country to begin implementing a negative interest rate, while the European Central Bank (ECB) adopted such a policy in 2014. As of July 2019, Japan, Sweden, Denmark and Switzerland are all offering negative interest rate loans.

A negative interest rate could be a way to stimulate the economy, but so far it isn’t something we’ve tried out in Canada. Economists are divided over whether or not it would be a good idea — it would encourage spending and inject cash into the market, but it would also make it more difficult for people to save. That being said, even if the federal funds rate dips below zero in the future, there’s no guarantee that banks would pass that savings on to you.

Looking for more information about interest rates? Check out these helpful articles below:

• Bank of Canada interest rate forecast report
• Free interest calculators

Bottom line

An online bank will give you the most bang for your buck, but you’ll have to give up access to in-person services and friendly tellers who know you by name. If you want to build your savings but are a little nervous about going with on online bank, consider using a major bank or credit union that offers a hybrid of online and in-person services.

Bank interest rates FAQs

• How can I tell if an online bank is safe?

  Do your research and find out if the bank is insured by the Canada Deposit Insurance Corporation (CDIC). Any deposit at, or below, $100,000 at an CDIC-insured bank is backed by the Canadian government, which means your savings are safe in the event that your bank fails.

• What savings product is right for me?

  If you need access to your money for emergencies, a savings account is your best option. However, if you can set your money aside for a fixed term, consider a Guaranteed Investment Certificate (GIC) to get the best interest rate.

• What should I look for in an online bank?

  If you're thinking about opening an online savings account or chequing account, look for CDIC-insured banks with at least 1 way to contact an actual human service representative if you need help. Check reviews online to see what other customers are saying, call the helpline to see if someone picks up and look into how easy it will be to access your money when you need it.

  For example, can you withdraw your money from an ATM? If not, how long does it take to transfer your money to an account where you can? Can you do Interac e-Transfers, online bill payments and email money transfers?

• Does a negative interest rate apply to interest you earn or interest you pay?

  Both. A negative APY means that you lose a percentage of your money in savings each year. A negative APR means that your lender pays you a percentage of your loan back each year. This means that it's a little harder to save money, but cheaper to spend it, which is how a negative interest rate can stimulate the economy.

• Who decides what interest rate I get?

  Your bank or lender, neither of whom are legally obligated to follow Canada's prime interest rate. However, banks and lenders very often base their own rates on the prime rate.

• What does the Bank of Canada have to do with interest rates?

  The Bank of Canada sets the prime interest rate, which is the rate at which the Bank of Canada would like financial institutions to use for overnight loans to/from each other. The interest rates you get tend to be loosely connected to this — while your personal bank or lender sets their own interest rate, national interest rate averages tend to fluctuate in line with the prime rate.