The difference 1% can make to your savings

A slight increase in your interest rate can add up to thousands over the life of the account.

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Comparing savings accounts to get the best APY can help you rack up a lot of extra interest — but watch out for impressive introductory offers that are attached to less-than-stellar long-term accounts.

EQ Bank Savings Plus Account

EQ Bank Savings Plus Account

2.00 % APR

rate

  • Zero everyday banking fees
  • Free transactions
  • No minimum account balance

EQ Bank Savings Plus Account

With no everyday banking fees and free transactions, open an EQ Bank Savings Plus Account and get an interest rate of 2.00%.

  • Account fee: $0
  • Interest rate: 2.00%
  • Min. deposit amount to open account: $0
  • Account type: Savings
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How much difference does an APY increase of 0.50% or 1.00% make?

Smiling woman at meeting with computerA percent, or even half a percent, difference can add up to significant savings over time. For example, Rebecca puts $40,000 into a savings account with a 2.50% APY, and adds $750 to her account each month. After five years, she’s made $8,200.45 in interest.

If she would have opened an account with a 3.00% APY instead of 2.50%, she would have made $9.949.71 in interest, or about $1,749 more in the same time period.

Now consider if Rebecca’s APY was 3.50%, she would have made $11,737.30 in interest— that’s an extra $3,537 over five years! In this example, choosing an account with an APY that’s just 1% higher would lead to several thousand extra dollars after only five years.

How to get higher interest rates

To get a bump in your savings account APY:

  • Compare accounts. It’s worth it to take the time to compare accounts at different banks and even within the same bank. If you meet the monthly minimum balance, a money market account might net you a higher interest rate than a traditional savings account. If you won’t need to access your money anytime soon, consider opening a GIC account.
  • Consider online and challenger banks. Newer online-only and app-based “challenger banks” don’t have to deal with the overhead that comes with operating physical bank branches, and they can pass those savings on to you in the form of better interest rates.
  • Look for introductory offers. Some money market and savings accounts will offer increased rates for an introductory period. Just make sure that you’re still happy with the rate your account will revert back to when that period is up.

Hidden fees and lower interest rates in the fine print

Banks might require you to meet a minimum balance requirement in order to get the advertised interest rate. Some will charge monthly fees if you don’t meet the required balance threshold, which can quickly eat into your savings.

Compare all savings accounts

Name Product Interest Rate Promotional Interest Rate Minimum Balance Account Fee
EQ Bank Savings Plus Account
2.00%
N/A
$0
None
Enjoy zero everyday banking fees, free transactions and no minimum balance with an EQ Bank Savings Plus Account.
Tangerine Savings Account
0.40%
2.8%
$0
None
Earn 2.80% interest for 5 months (up to a maximum of $1,000,000) as a new Tangerine client. Offer expires July 30, 2020.
Wealthsimple Cash
1.40%
N/A
$0
None
Earn 1.4% on any money you invest and withdraw your funds at any time.
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*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

Bottom line

Even a small difference in interest rate can make a significant difference to your savings over the course of several years. If you’re not convinced that you’re getting the best interest rate out there, compare other savings accounts and see if making a switch can start saving you more with a better APY.

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