Searching for a high-interest savings account? There are hundreds of options to choose from, including accounts from major banks and credit unions as well as online-only banks.
The key to finding the best high-interest savings account is to compare interest rates and fees and to make sure the account has all the key features to suit your savings goals. Keep reading for our guide to the best high-interest savings accounts in Canada, plus tips on how to get the highest interest rates for your savings.
Earn up to 6.05% interest for 3 months on your savings when you open both a MomentumPLUS Savings Account and a Scotiabank Preferred Package. Plus, you'll earn up to a $400 bonus with the Preferred Package.
To determine this best list, Finder Canada analyzed 22 savings accounts across 22 financial institutions. We compared accounts from traditional banks, digital banks, fintechs and credit unions. We narrowed down the list of accounts to the top 15 by listing accounts that are available Canada-wide.
We ranked accounts based on 16 data points within five major categories. Here’s how we ranked and weighted each product:
Perks: 40% (Ongoing and promotional interest rates, return on $10,000 balance over 1 year, other tailored rewards)
Although it functions as both a chequing and savings account, Wealthsimple Cash is a no-fee account with all the benefits of a high interest savings account. Perks include earning 4.00% to 5.00% interest (depending on how much money you hold in your account), being able to access your pay a day early, CDIC deposit insurance of up to $300,000, and the ability to earn 1% cashback in stock, crypto or cash when you make a purchase with your card.
No monthly fees
Earn 4% interest on your account balance
Unlimited free transfers
No minimum balance
Limited types of investments
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
N/A
NSF Fee
$0
Best high-interest savings account for promotional rate: EQ Bank Personal Account
The EQ Bank Personal Account has one of the longest promotional offers for a high-interest savings account in Canada. Get a promotional interest rate of 4% for 12 months. Plus, enjoy $0 e-Transfer fees, $0 account fees and $0 transaction fees.
$0 minimum balance to open the account
Get a promotional interest rate of 4% for 12 months
$0 account fee
$0 transactions
$0 from any ATM in Canada
$0 Interac eTransfers
Earn 2.50% - 4.00% interest on your balance
No physical branches for in-person service
Some standard banking features, like overdraft protection and paper statements, are not available
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
NSF Fee
$0
Best high-interest savings account for no fees: Simplii High Interest Savings Account
The Simplii High Interest Savings Account is another top pick for the best high-interest savings accounts in Canada. It earns a high promo rate of 6% interest for 5 months (and 0.4% thereafter). With a $0 account fee and $0 transactions, you can look forward to saving more of your hard earned money.
$0 account fee
$0 transactions
Earn 6% interest for 5 months
No physical branches for in-person service
Low ongoing interest rate after the promo ends
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
NSF Fee
$45
Best high-interest savings account for earning cash back: KOHO Earn Interest
KOHO Earn Interest is not only one of the best high-interest savings accounts in Canada – you can also get a prepaid card and earn cashback on your purchases. Opt into earning interest and earn up to 5.00% on your balance.
$0 account fee
$0 transactions
$0 Interac eTransfers
Earn cashback on purchases
Earn up to 5% interest
Must opt-in to a monthly plan to earn higher interest
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
NSF Fee
$0
Best online bank high-interest savings account: Neo Financial High Interest Savings Account
The highly-rated Neo Financial makes it easy to manage your account anytime, anywhere. With a high ongoing interest rate of 4%, the Neo High Interest Savings Account provides solid returns on your savings. Enjoy $0 annual fees, no minimum balance requirement and free transactions.
Earn a high interest rate
$0 account fee
No minimum balance
No physical branches for in-person service
Min. Age
N/A
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
Best high-interest savings account with saving incentives: Scotiabank MomentumPLUS Savings Account
The Scotiabank MomentumPLUS Savings Account offers a high interest rate - especially if you take advantage of the promo rate. Earn a savings rate of up to 6.05% for 3 months. Plus, enjoy free unlimited transfers between Scotiabank accounts.
$0 account fee
Earn 6.05% for 3 months, 1.3% thereafter interest on your deposits
$0 Interac eTransfers
You’ll get an additional load of interest at regular intervals within your first year.
$1.50 out-of-network ATM withdrawal fee
It takes some time to earn a higher interest rate with this tiered interest rate account
Min. Age
18
Account Fee
$0
Transaction Fee
$5.00
Interac e-Transfer Fee
$0
Best high-interest savings account with on-going promotional offers: Tangerine Savings Account
The Tangerine Savings Account has no fees and an easy online signup process. This pick for the best high-interest savings accounts in Canada offers an introductory interest rate of 5.75% for 5 months, 0.70% thereafter, then pays a standard rate of 0.7%. If you move your money out of the account after the offer has expired, it's common for Tangerine to present new offers in the future that you can take advantage of.
No monthly fees
All everyday transactions are $0
Supports an Automatic Savings Program for making recurring deposits into your account
Regular interest rate may not be as competitive as other savings accounst
No physical branches for in-person service
Min. Age
16
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
N/A
Best high-interest savings account with on-going interest rate: Home Trust High Interest Savings Account
As an online-only bank, Home Trust offer a high interest savings account that has a high ongoing interest rate of 4.65%. With no frills, this account is $0 and is tailored towards those looking to strictly save.
Earn a high ongoing interest rate of 4.65%
$0 monthly account fee
Online only bank
Min. Age
N/A
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
N/A
Best high-interest savings account with no withdrawal fees: CI Direct Investing High Rate Savings Account
Earn a high interest rate on your savings with no minimum deposit requirements and no monthly fees. Plus, manage your money easily through online-only banking. Transfer your funds to and from your linked accounts at other banks to your CI Direct Investing High Rate Savings Account.
$0 account fee
$0 transactions
$0 Interac eTransfers
Earn 4% interest on your balance
Online-only service
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
Best high-interest savings account from a Big Five Bank: RBC High Interest eSavings
The RBC High Interest eSavings Account is a good fit for customers who want to bank online with a Big Five Bank and would like to earn a high interest rate on their savings. It offers no minimum deposit requirements, zero monthly fees, free RBC transfers and one free ATM withdrawal per month.
No monthly fee
High interest earning potential
Free internal transfers
No minimum deposits
Limited debits
$1.00 Interac e-Transfer fees
Min. Age
18
Account Fee
$0
Transaction Fee
$5.00
Interac e-Transfer Fee
$1.00
Best high-interest savings account for tiered interest rates: CIBC eAdvantage Savings Account
While you'll be able to take advantage of a promotional interest rate of 5.75% for 4 months when you open a new account, the CIBC eAdvantage High Interest Savings Account also comes with the ability to earn additional 'Smart Interest' when you save at least $200 per month.
Earn a promotional interest rate of 5.75% for 4 months
Earn additional Smart Interest
Lower ongoing rate of 0.65% once the promo ends
Each transaction costs you $5
Min. Age
N/A
Account Fee
N/A
Transaction Fee
$5
Interac e-Transfer Fee
N/A
Best high-interest savings account for setting up automatic deposits: BMO Savings Builder Account
Earn 2.50% interest when you save at least $200 per month. Setting up automatic deposits here will ensure that you reach this goal each month and maximize the amount of interest you can make. As a BMO customer, you can use online or mobile banking to easily manage your money.
$0 account fee
Earn up to 2.5% interest
Bank in person, online or via mobile app
You may not be eligible for the bonus interest rate if you don't increase your savings balance by at least $200 per month on balances up to $250,000.
$5.00 transactions
Min. Age
18
Account Fee
$0
Transaction Fee
$5.00
Interac e-Transfer Fee
$5.00
Best high-interest savings account to link with GICs: Oaken Savings Account
The Oaken Savings Account comes with an impressive interest rate, $0 monthly fees and $0 transactions. Link your savings account to an Oaken Guaranteed Investment Certificate (GIC) investment to boost your savings even further. Manage your money easily through online banking and by transferring your funds to and from your linked accounts at other banks.
$0 account fee
$0 transactions
Earn 3.4% interest on your balance
No Interac eTransfers
No in-person service at a branch
Min. Age
N/A
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
not supported
Best high-interest savings account for transparent fees: Motive Financial Motive Savvy Savings Account
Earning a high ongoing interest rate of 4.1%, the Motive Financial Motive Savvy Savings Account is a contender among other best high interest accounts available in Canada. With transparent fees outlined clearly on their website, you won't have any surprises with this savings account
Earn an ongoing interest rate of 4.1%
Fees outlined clearly on their website
Unlimited, free deposits
Only 2 free transactions per month
e-Transfers cost $1 each
Min. Age
N/A
Account Fee
$0
Transaction Fee
2/month free
Interac e-Transfer Fee
$1
Best hybrid chequing and savings account with high interest: Manulife Advantage Account
The Manulife Advantage Account is a high-interest savings account that comes with tons of the perks of a chequing account, like unlimited transactions, debits and ATM funds access. All you have to do is keep a balance of $1,000 in your account and all everyday banking transactions are free.
Just keep a balance of $1,000 in your account and all everyday banking transactions are free
$0 monthly fee
You'll have to pay a $1.50 fee per ATM withdrawal
Interest rate drops to 2.85% after the promotional period ends
Min. Age
N/A
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$1.00 for Interac Debit card purchases in Canada and for sending money using Interac e-Transfer
5 steps to choosing the best high-interest savings accounts in Canada
If you want to find the best high-interest savings account in Canada for your needs, here’s what you need to do.
Step 1: Work out what you want in a savings account
Choosing a savings account isn’t just about finding the highest interest rate. First, you’ll need to decide your savings goals — how much do you want to save, what for, and in what timeframe?
You’ll also need to consider whether there are any key features you want in an account. For example, do you want to be able to access your funds at any time without incurring transaction fees? Do you want ATM access for convenient withdrawals? Do you want to be rewarded for making regular deposits with a higher interest rate?
Make sure you know exactly what you want in a high-interest savings account before you start shopping around.
Step 2: Compare interest rates
Look for accounts with the best interest rates in Canada. The highest interest rates can vary greatly, usually between 0.50% and 2.50%, but some banks and fintechs offer even higher rates.
Check whether the account pays a flat rate on your entire balance, or whether you need to meet certain terms and conditions to access the maximum rate.
For example, some accounts pay bonus interest if you deposit at least $200 a month and don’t make any withdrawals. Check what rate will apply if you don’t meet these requirements in any given month.
Some of the best high-interest savings accounts in Canada entice new customers with high introductory interest rates. However, these accounts will then revert back to a base interest rate once this intro period ends, usually after a maximum of six months, so make sure you know the account’s base interest rate too.
Step 3: Watch out for fees and limits
The best high-interest savings accounts in Canada don’t have any monthly fees. It’s also worth checking the fee schedule to see whether any other fees apply, such as:
Excess withdrawal fees
ATM withdrawal fees
Account inactivity fees
Also check whether the account has any minimum balance requirement, and how you’ll be penalized if your balance falls below this threshold. Finally, check whether there is any limit on the number of transactions you can make per month.
Step 4: Review account features
Now it’s time to dive deeper into the features the account offers, such as:
Linking your account. Depending on your bank, you may be required to link your high-interest savings accounts to a chequing account from the same bank. If you have a chequing account at a different bank, find out if you can link it to your high-yield savings account. Otherwise, you may be forced to pay another monthly fee for a bank account you might not need.
24/7 accessibility. There are usually several ways to access your savings, including mobile and online banking, so check whether the bank offers a user-friendly mobile app and online portal. Some accounts also come with ATM cards, but others don’t. Decide how you plan to use your funds and choose an account that aligns with your needs — for example, would you like to be able to visit a branch for face-to-face customer service if you ever have a problem with your account? If you’re trying to stop yourself from dipping into your savings, consider an account with limited accessibility.
Bonus features. Some of the best high-interest savings accounts in Canada come with budgeting features. Others come with automatic savings programs to help you reach your goals, or the ability to create sub-accounts so you can put money towards separate savings goals.
Check on deposit insurance. Make sure the financial institution you choose is a member of the Canadian Deposit Insurance Corporation (CDIC), so your money will be insured if the bank fails.
Step 5: Choose a high-interest savings account and apply online
Once you’ve found the best high-interest savings account in Canada for your needs, open an account. It’s easy to apply via online or mobile banking, and you can then link the new account to your chequing account and make your first deposit.
Making the switch for a more competitive interest rate
I opened a Neo HISA account to take advantage of the always on 4% interest rate. I like the app, and opening the account only took about 5 minutes. It was easy to link my existing account to transfer funds between banks. The downside is that it takes 7-10 business days for the transfer to be completed. If you're going to use this account be sure you don't need access to the funds in less than that time.
What is a high-interest savings account in Canada?
A high-interest savings account is an account that pays a high rate of interest on every dollar you deposit. You may sometimes see high-interest savings accounts referred to by the acronym, HISA. The best high-interest savings accounts in Canada are designed to help you save money faster through the power of compound interest.
High-interest savings accounts, which are also known as high-yield savings accounts, typically have no monthly fees. Some of these HISA accounts pay a high interest rate on all balances, but others require you to meet specific conditions to access the maximum rate — for example, you may need to deposit a minimum amount each month, or the highest interest rate may only apply for an introductory period.
Expert tip: The more you deposit, the more you'll earn.
Stash your cash in a high-interest savings account and your money ends up working for you. For instance, an earn rate of 2.5% will mean an extra $25 at the end of the year, for every $1,000 in the account.
For the best deals, be prepared to comparison shop. Even among high-interest savings accounts, there is a wide range of interest rates offered — and pay attention to high introductory promotional rates. These promos can really juice your overall interest earnings and add hundreds or more to your savings. Just pay attention to minimum balance commitments, potential fees and deadlines. Once the promotion ends, don't be afraid to take your business elsewhere.
A high-interest savings account is designed to help you grow your bank balance as quickly as possible. The best HISA in Canada do this by combining some of the best interest rates in Canada with no monthly fees and often other incentives (such as bonus interest) if you make regular deposits into your account.
When it comes to savings accounts or investments, interest is the money you earn when deposited into an interest-earning account. The bank, credit union or financial institution pays you interest since you are effectively lending them your money. Not to worry, though, as your money and interest earned are protected from any type of loss, as long as the financial institution is a member of the Canadian Deposit Insurance Corporation (CDIC).
The best high-interest savings accounts in Canada also help you save by discouraging spending. They typically don’t have perks like unlimited transactions that you’d get with a day-to-day chequing account, and some accounts don’t offer ATM access as a way to stop you from dipping into your savings.
Many factors play into the amount of interest you ultimately earn in a high-yield savings account, including:
Advertised interest rate
How interest is calculated (Eg: daily, monthly, semi-annually or annually)
Whether or not the interest is compounded or simple interest
Limits or restrictions imposed by the financial institution.
The interest rate is often expressed as an annual percentage. The higher the interest rate you’re offered, the stronger your return.
How does compound interest affect my savings account?
The main reason high-interest savings accounts are such powerful savings tools is because of compound interest. Money deposited into your high-interest savings account earns interest. This earned interest is added to your account balance and this total is then used to earn more interest — allowing you to earn interest on your interest as well as on your initial deposit.
The power of compound interest is that your rate of saving accelerates over time, helping to grow your savings quicker without requiring you to make investment decisions. Even if you can’t deposit extra money into your high-interest savings account, your balance continues to grow as interest compounds and grows your savings, over time.
High-interest savings accounts are popular among Canadians. According to survey results from Finder: Consumer Sentiment Survey Q1, more than 1 in 5 of Canadians (21%) planned to open a savings account — with 12% planning to open a high-interest savings account. Residents of Quebec, P.E.I. and Alberta were most likely to open a savings account (27%, 25% and 23%, respectively), while residents in Nova Scotia (15%) were the most likely to open a high-interest savings account.
In the Finder: Consumer Sentiment Survey Q2, Canadians confirmed their preference for these versatile bank accounts with almost a third of Canadians (30%) planning to open a savings account in Q2 2023, and 16% planning to open a high-interest savings account.
Why you should switch to a high-yield savings account
Regardless of whether you’re saving for a vacation, a home deposit, or just an emergency fund for a rainy day, maximizing your interest-earning power will ensure that you achieve your savings goals at a faster rate.
Switching to one of the best high-interest savings accounts in Canada can earn you more money with some of the best interest rates in Canada and save you more money with lower fees. It’s a win-win.
The table below shows how much money you’d earn by switching from a savings account with a 0.01% interest rate to one with a 1%, 2% or 3% rate.
Account balance
0.01%
1%
2%
3%
First-year benefit (3% vs. 0.01%)
$1,000
$0.10
$10.05
$20.20
$30.45
$30.35
$5,000
$0.50
$50.25
$101.00
$152.27
$151.77
$10,000
$1.00
$100.50
$202.01
$304.53
$303.53
$25,000
$2.50
$251.25
$505.02
$761.33
$758.83
Interest rate calculator: Calculate what you can earn
If you want to work out how a high-interest savings account can help you reach your financial goals, use this free savings account interest calculator.
How to use the interest calculator:
Input the initial amount you’ll deposit into the high-interest savings account. (You can start with $0, or add a specific sum.)
Add how much you expect to deposit each week or month into the high-yield savings account.
Update the interest rate offered on the high-interest savings account to reflect current market offers.
Input the number of years you plan to save, using the high-yield savings account.
Using this interest calculator you can view the total sum in your high-interest savings account, and compare how different interest rates impact the total amount earned, through compound interest, over time.
How do interest and compound interest work?
Interest is the money earned on your deposits. Compound interest is when you earn interest on interest you’ve already earned.
To illustrate, let’s assume you deposit $5,000 into one of the best high-interest savings accounts in Canada for your newborn that pays 2% interest on the account balance.
If the interest did not compound, by the time your child is ready to head off to university there would be $6,800 in the account — with the extra $1,800 earned from interest. However, with compound interest that sum grows to just over $7,140. If you were to add an extra $15 per month, during those 18 years, that sum could balloon to more than $11,000.
Compound interest isn’t magic but for those looking to juice their savings it can be a magical tool. And remember, the more frequently your account balance earns interest, the more quickly your savings will grow. Combine this with a longer time frame — letting your money sit for longer, to gain more interest — and the more powerful compound interest becomes.
How do I make the most of compound interest?
To get the most out of a savings account with compound interest, start saving as early as possible and avoid unnecessary withdrawals.
After signing up for one of the best high-interest savings accounts in Canada, use these tips to get the most out of your account.
Stay on top of your monthly minimum. Some accounts require a minimum monthly balance before requiring a fee. Keep more money in your own pocket by meeting that minimum.
Deposit what you can. Because compound interest helps your money make money, you can increase your earnings with routine deposits to your savings balance. Using automatic payments or automatic transfer functions to move money from your chequing to your savings account regularly is a great way to stay on top of growing your funds.
Avoid fees. Some banks waive fees if you link your savings and chequing accounts, directly deposit your paycheque into an account or sign up for automatic payments. Certain accounts waive fees if you maintain a minimum balance. Ask your bank representative for ways that you can get ahead with your savings.
Pros and cons of the best high-interest savings account in Canada
If you’re thinking of opening a high-yield savings account in Canada, consider the following advantages and disadvantages:
Pros
Reach your goals faster. If you apply for a high-yield savings account that matches your savings style, you can get a head start on reaching your financial goals.
No fees. Most of the best high-interest savings accounts in Canada don’t charge fees for maintaining the account.
Low risk. Savings accounts are considered one of the safest investments available, next to a GIC. Most banks and financial institutions are guaranteed by the CDIC, which means that eligible deposits are insured up to $100,000 a person, per bank.
No expert knowledge required. Compared to other accounts like RRSPs and brokerage accounts, a savings account is easy to open and manage. The funds deposited into a high interest savings account can always be reinvested into another account or product, plus there is no risk of losing deposited funds.
Cons
Minimum balance requirements. Some high-interest savings accounts only pay interest if your balance is above a certain threshold. Know that amount and monitor your account balance so that your money is always earning interest.
Terms and conditions. Some high-yield savings accounts only allow you to earn the highest interest rate when you meet specific terms and conditions, like depositing a minimum amount each month. Other accounts only offer an attractive rate for a limited introductory period, before then reverting to a much lower rate.
Interest rate changes. Banks can lower their rates for a few reasons. And if your account has a variable interest rate, you may lose out if the federal rate drops.
Transaction limits. Some high-interest savings accounts impose a limit on how often you can withdraw money. While this is designed to stop you from dipping into savings, it can be inconvenient in some cases.
What are the best interest rates in Canada?
With savings accounts, you can expect interest rates anywhere from as low as 0.01% up to 2.50% depending on who you choose to bank with. Rates offered by Canada’s Big Six Banks, such as Scotiabank and RBC, range from around 0.01% to 1.40% while digital banking operations like EQ Bank and Neo Financial offer up the best savings account rates to the tune of 3% and 4% interest. While introductory interest rates offer the best interest rates in Canada for a limited time, they do drop after the promo period has ended.
Savings account interest rates are often referred to as APY or EAR — the “Annual Percentage Yield” or “Earned Annual Interest” is the amount of money made each year on an investment due to compound interest. This interest is calculated using the annual percentage rate (APR). To learn more, read our bank interest rates guide.
Types of savings accounts
Some of the best high-interest savings accounts in Canada offer a flat interest rate on all the money you deposit. Other accounts come with additional interest rate features or terms and conditions, such as:
Tiered interest rates. These rates increase in line with the length of time you keep your money stored away, or based on the size of your account balance. The Scotiabank MomentumPLUS Savings Account is a prime example of how tiered interest rates are structured, paying higher interest if you go 90, 180, 270 or 360 days without a debit transaction.
Promo interest rates. These high-yield savings accounts offer introductory rates to new clients opening up an account for the first time. The Simplii High Interest Savings Account is a great example—it offers 6% interest for the first 5 months after you’ve opened your account, then reverts back to a standard rate that starts at 0.4%. Higher rates apply to higher balances.
Bonus interest rates. These accounts pay bonus interest when you satisfy certain terms and conditions, such as depositing a minimum amount each month. For example, the BMO Savings Builder Account has a base interest rate of 0.5%, but you can earn 2.5% interest if you deposit at least $200 a month.
How are savings account interest rates determined?
Banks set and change interest rates for savings accounts based on the national prime interest rate. This rate is set by the Bank of Canada as a general guide for banks to follow when they choose their interest rates for both loans and deposits. When the Bank of Canada updates the prime rate, the decision usually makes headlines and the news can help you predict whether your savings account rate might change.
GIC vs high-interest savings account: What’s the difference?
Savings accounts
Savings accounts let you make deposits when you want and grow your balance at your own pace. A variable interest rate applies to your balance and typically ranges from 1.00% to 2.50%.
You usually have limited access to your funds, and the penalty for going over this limit can cost you up to several dollars in fees per transaction. There is no end date to your savings account investment — you may continue to grow your money as long as you wish. Check out our guide to savings accounts for more information.
Guaranteed Investment Certificate (GIC)
A Guaranteed Investment Certificate (GIC) lets you earn a guaranteed rate of return on the money you deposit. The money you invest is usually locked away for a fixed period of time, and when that time is up, your money is returned to you with interest. Short-term GICs last from one to nine months, while long-term GICs usually last from one to five years but can even last up to 10 years.
You can often find higher interest rates on GICs than on savings accounts. But the downside is that you usually can’t access the money in a GIC until the end of the investment term without incurring a financial penalty.
How to apply for one of the best high-interest savings accounts in Canada
It’s easy to apply for a high-yield savings account online. Once you’ve clicked through to the bank’s secure application page, you will typically need to provide:
Personal identification such as a driver’s licence, passport or provincial ID card
Personal details such as your name, contact information, email address and mailing address
Your Social Insurance Number (SIN)
Details of the account you want to link to your new high-yield savings account, such as a chequing account
Can I open a high-interest savings account as a minor (either a kid’s savings account or a youth high-interest savings account)?
Note that minors need a parent or guardian to register a youth bank account for them. You’ll need to provide their ID, not just their child’s ID. Banks differ in the age they set for eligibility to have a youth account, so if you’re a teenager or the parent of one, check your bank’s eligibility requirements.
Can I open a high-interest savings account as a visitor to Canada?
Depending on your visa type, length of stay and other details, you can open a bank account in Canada. Whether you open a high-interest savings account with a big six bank or an online bank, you will be asked to verify your identity. For Canadians, this means providing your Social Insurance Number (SIN) and for non-permanent residents, this will include confirmation of a working or student visa, as well as proof of residency in Canada. For more details on opening a bank account, check out the best banks for newcomers in Canada.
Bottom line
A high-yield savings account can help you reach your savings goals faster. With access to some of the best interest rates in Canada, you might be surprised just how quickly your balance grows when you make regular deposits while earning compound interest. Use our compound interest calculator to work out how soon you can reach your goals.
The key to comparing the best high-interest savings accounts in Canada is to shop around for the best rate while considering account fees, accessibility and deposit insurance to find the right account for you. Then it’s a matter of linking your high-yield savings account to your chequing account and starting your savings journey.
The results of the Finder: Consumer Sentiment Survey Q1 were collected through an online Pollfish survey conducted between December 2022 and January 2023. In the survey, 1,846 Canadians from across the country were asked about their current banking services and their intentions and motivations for new banking products. The estimated margin of error for the survey is +/- 3%, with a 99% confidence level.
The results of the Finder: Consumer Sentiment Survey Q2 were collected through an online Pollfish survey conducted between April 27 to 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their current banking services and their intentions and motivations for new banking products. The estimated margin of error for the survey is +/- 3.08%, 19 out of 20 times.
Best Canadian savings accounts and high interest savings accounts FAQs
If you're searching for a savings account with the best interest rates in Canada, EQ Bank offers a standard interest rate of 2.5%. Some of the other best high-interest savings accounts in Canada, like Simplii and Scotiabank, offer an interest rate of more than 5.00% for an introductory period of a few months, but then revert back to a lower rate.
At the time of writing, there were no high-interest savings accounts offering an ongoing interest rate of 5%. However, accounts such as the Simplii High-Interest Savings Account and Scotiabank MomentumPLUS Savings Account offer an introductory rate of more than 5% for the first few months, before then reverting to a lower standard rate.
When shopping around for one of the best high-interest savings accounts in Canada, you might notice that some banks list the interest rate they pay, while others list the APY (annual percentage yield). Your interest rate is the simple interest you're paid on an account or an investment over a period of a year. For example, if you've invested $1,000 into an account that comes with 1.00% interest, you'll have earned $10 on that investment at the end of a year.
An APY is an annual rate of return that takes into account compound interest over a year. In short, it's the interest rate compounded monthly over the course of a year — or the total interest you'd receive if the account remained untouched for a year.
The big five banks and other larger institutions sometimes pay less interest than smaller banks or fintechs. The big banks often have more products and customers than smaller institutions, allowing them to generate significant earnings due to the sheer number of accounts, even though their rates are not as competitive. Fintechs that don't operate any physical branches also have lower running costs than major banks, so they can afford to offer higher rates.
An online savings account is just like a standard savings account, but it's offered by an online-only bank that doesn't operate any physical branches. This allows online banks to reduce their overhead costs and pass down their savings to you in the form of higher interest rates and lower fees.
Some banks have different interest rates depending on how much money is in your account. For example, balances below $10,000 could have a rate of 0.5%, while balances that exceed $10,000 have a 1.50% interest rate. With multiple rates potentially applying to your account, the maximum variable rate available will fluctuate with your bank balance.
High-interest savings accounts are just as safe as traditional accounts as long as they're federally insured. Make sure you open an account with a bank or financial institution that is a CDIC member. This means you'll get your money back (up to $100,000) in the unlikely event that the financial institution goes bankrupt.
If you think you might need access to your money in the near future, a savings account is a suitable, low-risk option. However, if you're willing to set your money aside for a longer period of time, a Guaranteed Investment Certificate (GIC) might offer a higher interest rate, depending on the market. You can also explore other investment strategies such as bonds, mutual funds and Tax-Free Savings Accounts (TFSA) to find the best way to preserve and grow your funds.
Compound interest is when interest is earned on your balance and on the interest that you're earning. This is different from simple interest where you earn a set rate of interest on the principal on your amount saved only.
One easy way of finding out the interest rate on your savings account is by looking at your account details online or on your bank's mobile app, assuming your bank supports these features (most do). The interest rate charged on your savings account balance is often stated on the same page that you can view your transaction history for that account.
Alternatively, you can read the terms and conditions of you received when you signed up for your savings account or else call a bank rep. Make sure you find out all of the following details:
The interest rate for your savings account
How often interest are calculated (daily, weekly, monthly, yearly etc.)
When payments are made to your account (daily, weekly, monthly, yearly etc.)
Interest that's paid monthly is calculated on your balance at the end of the month. If payments are made monthly, then you'll have that amount deposited into your account each month. But if you're paid yearly, then you'll get the sum of all your monthly interest payments in one large, collective payment at the end of the year.
No. In most cases, you must meet your minimum monthly deposit requirement with other funds.
Yes. Interest on investments, including interest earned on savings accounts, is considered income by the CRA. If your income is above a certain threshold, you must declare what you make to the CRA and pay income tax on it.
This is true even for children's savings accounts, although children do not often meet the minimum income threshold required to be taxed. However, they may meet the threshold if their parents transfer money to them and that money is subsequently invested. See our guide to finding the best children's savings account for more information.
Learn more about paying tax on interest earned from a savings account here.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
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