Online savings accounts are typically offered by digital banks — financial institutions that don’t operate physical branches. As a result, these online banks have lower operating costs and that’s great news for savvy savers. Over time, however, traditional banks also began offering online versions or online access to traditional bank accounts. Still, for Canadians looking for a savings account, there are some great perks offered through online savings accounts, including very competitive interest rates and no fees.
But with so many options in the market, how do you choose the best online savings account in Canada? In this guide, we researched dozens of digital savings accounts to find eight of the best online savings accounts.
Best online savings account with grocery perks:PC Financial
We’ve chosen the best Canadian savings accounts on this page based on the providers available through Finder and online in the Canadian marketplace. These high interest savings accounts are not representative of the entire market. When comparing the best Canadian savings accounts, we considered key factors including the interest rate, how rewarding an account is in terms of growing savings and how easy it was to open. That meant digging into account details like type, annual percentage yield (APY), monthly fee, minimum deposit to open the account, minimum balance to earn interest and signup bonus. No single high interest savings account will be the best choice for everyone, so compare your options before applying.
Top 8 online savings accounts in Canada in 2024
Account
Best For
What We Like
Account Fee
Open Online Savings Account
Best high-interest online savings account
Earn 6% interest for 5 months, and 0.4% thereafter
$0 account fee
Unlimited, free transactions and $0 Interac e-Transfers
Online savings accounts are designed for people who are comfortable doing all their banking digitally. They offer high-interest rates and low or no fees, but they don’t support in-branch transactions or specialized features like writing cheques. So if you like to have the option of carrying out transactions face-to-face in a branch, an online savings account won’t be the best choice for you.
But if you’re searching for an easy and convenient way to grow your money, and you feel at home using online and mobile banking, then there are lots of good reasons to open an online savings account.
But there’s no such thing as a one size fits all best online savings account for everyone. The best savings account for you is one that offers the key features you need, whether that’s a sky-high interest rate, no fees, easy access to your money or even features to discourage you from dipping into your savings.
Once you know which features you need in an online savings account, you can start comparing your options.
Top features of an online savings account
Online savings accounts are usually offered by Canadian online banks and fintech apps. With lower overheads than traditional banks, these providers can afford to offer competitive interest rates and low or no account fees.
But the big banks were never just going to sit back and let these so-called challenger banks steal all their customers, and traditional banks have also started to offer their own online savings accounts.
So if you want to open an online savings account, there are plenty of options to choose from. To find the best online savings account for your needs, you’ll need to compare the following key features.
Interest rate
The higher the interest rate, the quicker your savings balance will grow. However, the type of interest rate you get may vary from one account to the next.
Online savings accounts offer the following options:
A flat interest rate on every dollar in your account, regardless of your balance.
A tiered interest rate structure that pays a higher interest rate on larger balances.
A standard interest rate that applies at all times, plus a bonus interest rate when you meet specific terms and conditions — for example, if you deposit at least $200 per month.
A high introductory interest rate for a limited time after you open an account, before reverting back to a lower standard rate.
Read the fine print closely to find out what type of interest rate applies to your account.
Fees/costs
Most online savings accounts don’t have any monthly or annual fees. But it’s important to check whether there are any other fees that apply, such as:
Transaction fees
Withdrawal fees
Fees for exceeding a monthly transaction limit
Non-network ATM fees
Bonus offers
Some online savings accounts come with added perks and rewards to help sweeten the deal. These can include:
Cash bonus welcome offers
Cash back on purchases
Bonus introductory interest rates for new customers
These offers can offer excellent value and help boost your savings, but remember that they often last for a limited time. Make sure you’ll still be getting a competitive deal once any introductory offer comes to an end.
Account access/availability
Check how you will be able to access the funds in your online savings account. Some accounts are designed to discourage you from spending your money, so the only way to withdraw funds is to transfer them to your linked chequing account.
But other online savings accounts come with linked debit cards and ATM access, which is convenient if you ever need emergency cash.
Account type
There are many different types of online savings accounts to choose from, including:
Standard online savings accounts. These high interest savings accounts pay a flat rate of interest on every dollar you deposit into your account. Some allow unlimited access to your funds, but others only allow a limited number of withdrawals per month.
Bonus online savings accounts. These accounts pay bonus interest when you perform specific transactions, such as depositing a minimum amount per month or getting your paycheque deposited into your account.
Introductory online savings accounts. Some online savings accounts offer a much higher interest rate for a limited introductory period, usually a maximum of six months. After that time they revert back to a lower base rate.
GICs and term deposits. These low-risk investment options provide a guaranteed return on your investment. They usually require you to lock your money away for a fixed period to earn a fixed rate of interest, and fees typically apply if you want to withdraw your money ahead of schedule. Check out our guide to GICs for more information.
TFSAs. Tax-free savings accounts let you contribute up to $6,500 per year, earn a high rate of interest and avoid paying tax on your earnings. Find out more in our TFSAs guide.
RRSPs. A registered retirement savings plan lets you reduce your taxable income and defer tax on your interest earnings, helping you invest for a secure retirement.
Minimum balance requirement
While many online savings accounts have no minimum balance requirements, some do. If you don’t keep your balance above this threshold, a monthly account fee may apply or you may not qualify for the maximum interest rate.
Included transactions
Check if there are any limits on how and when you can access your account. Some online savings accounts allow unlimited access and support Interac e-Transfers, ATM withdrawals and more. Other accounts are set up to discourage you from dipping into your savings, so they may place limits on the amount of transactions you can perform per month.
If your online savings account has transaction limits, check what fees will apply if you exceed those limits.
Linked account
Some banks will require you to open a chequing account with them at the same time that you open an online savings account. If that’s the case, make sure the chequing account is right for your needs, and check whether it has any monthly fees.
Other online banks allow you to link your savings account to a chequing account with any financial institution. Remember to check whether you can easily set up a direct deposit to your online savings account to automatically transfer funds and grow your balance.
Drawbacks of an online savings account
Before you open an online savings account, there are a few disadvantages you should be aware of:
No branch access. Most online savings accounts are offered by online banks and fintechs that don’t have any physical branches. If you like to have the option of accessing face-to-face customer service, you’ll want to consider other options.
Limited access to your funds. Some online savings accounts place restrictions on how you can access your funds, and how often. Keep this in mind if you want to be able to withdraw cash at any time.
You may not qualify for the highest rate. You may need to meet specific terms and conditions to qualify for the highest advertised rate. For example, there may be a minimum balance requirement or you may need to deposit a minimum amount each month.
Why these 8 online savings accounts are worth it
To pick the best online savings account, it’s important to examine each account to determine what features are offered and what perks you can expect. To help decide, here’s what makes these eight online savings accounts best-in-class in 2023.
Best high-interest online savings account: Simplii High Interest Savings Account
Simplii High Interest Savings Account is the best high-interest online savings account for several reasons. First, there are no fees that will chip away at your savings goal. Then, there's the introductory interest rate of 6% for 5 months — a big boost to help you kickstart your savings. Then there is the tiered interest rate that kicks in once the promo period ends. For account balances up to $100,000 expect to earn 0.4% and balances above this, but below $500,000, earn at a 0.65% interest rate. Plus, there's no minimum balance requirement, and you can set up automatic deposits to help your balance grow quickly.
No account fee
$0 transactions
Earn interest rates
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 online savings account for TFSAs: EQ Bank TFSA Savings Account
If you want to open a TFSA online, we recommend checking out what EQ Bank has to offer. With the ability to earn 3% tax-free interest on every dollar you invest, the EQ Bank TFSA Savings Account is a savings superstar. There's no minimum balance requirement and no fees to worry about either, and you can access the money in your account whenever you want without incurring any fees. This is particularly important since many TFSA savings accounts charge a transfer of withdrawal fee — of approximately $50 per transaction — that can quickly erode savings and deplete any interest earnings. Plus, if you link your TFSA to your EQ Bank Savings Plus Account, it's easy to set up regular deposits and watch your balance grow.
$0 monthly fee
The minimum balance requirement is $0
Some standard banking features not available
No physical branches for in-person service
Withdrawal fees
Min. Age
18
Account Fee
$0
Transaction Fee
unlimited
Interac e-Transfer Fee
N/A
Best online savings account for RRSPs: EQ Bank RSP Savings Account
If you're searching for the best online savings account to help you save for a financially secure retirement, there's a lot to like about the RSP Savings Account from EQ Bank. This account lets you earn 3% interest on your balance and defer the tax you owe on interest earned, or buy an RSP GIC with a rate of up to 5.25%. There are no fees to worry about — including no withdrawal or transfer fees, should you decide to take your savings and transfer them to an investment brokerage account — and you can set up regular contributions to help your balance grow. Best of all, managing your account is a breeze with EQ Bank online and mobile banking.
Earn 3% interest on every tax-deferred dollar
Pay no fees and automate your savings.
Deposit insurance only up to $100,000,No physical branches for in-person service
Min. Age
18
Account Fee
$0
Transaction Fee
N/A
Interac e-Transfer Fee
N/A
Best online savings account with cash back on spending: Neo Financial Money Account
Want to save money but get rewarded for your spending at the same time? We recommend checking out the Neo Money Account. This account offers a very competitive interest rate of 5%, with no monthly fees and no minimum balance requirement. But at the same time, you earn cash back on purchases you make with your Neo Money card, with an average of 5% cash back available at over 10,000 stores. There's no limit to the amount of cashback you can earn, so this is an account that rewards you for spending as well as saving.
Earn 5% interest
Earn an average of 5% cashback on spending
$0 account fee
Free, unlimited transactions
CDIC protection for balances up to $100,000
Online only with no physical branches
Doesn't come with a debit card, though does come with the Neo Money Card
Not available to residents of Quebec
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
NSF Fee
$0
International ATM Fee
$0
Best online savings account with credit card and budgeting tools: KOHO
KOHO offers an online savings account with a host of added perks. There are free and paid plans available, allowing you to earn between 0.5% and 4% interest on your balance. You also get a linked reloadable prepaid Mastercard that you can use to make purchases, with cash back of up to 5% available depending on the plan you choose. KOHO also offers a suite of budgeting tools to help you track your spending and save more money, plus it provides access to a line of credit that you can use to build your credit history.
No account fee
$0 transactions and eTransfers
Earn cash back
Opt-in to earn more 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 savings account with free ATM access: Tangerine Savings Account
Looking for an account that offers impressive interest-earning power along with the convenience of easy access to your money? The Tangerine High-Interest Savings Account could be the perfect fit. Offering a competitive interest rate of 0.7% and no monthly fees, it's got all the key features you need to reach your savings goals. There's no minimum balance requirement either, and it's easy to set up automatic deposits to your account. The other benefit of the Tangerine Savings Account is that you get free access to the Scotiabank ATM network, ensuring that you can make quick and easy withdrawals whenever you need.
$0 monthly fee
All everyday transactions are $0
Supports an Automatic Savings Program for making recurring deposits into your account
24/7 customer service phone line.
Regular interest rate may not be as competitive as other savings account rates on this list
No physical branches for in-person service
Min. Age
16
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
N/A
Best online account with retail rewards: Canadian Tire Bank
The financial services arm of Canadian Tire offers a wide range of products and services, and its High Interest Savings Account is well worth a look. With an interest rate of 3.5%, it offers one of the highest savings account interest rates going around. There are no monthly fees and no minimum balance requirement, and you can access your funds at any time via online banking. Simply set up regular deposits from a linked external account and then sit back and watch your money grow.
The PC Money Account is an everyday bank account that rewards you for your spending. It has no monthly fees but supports unlimited everyday transactions, while free Interac e-Transfers are also included. Best of all, you earn PC Optimum points for day-to-day transactions like getting your paycheque direct deposited into your account, paying bills and making purchases. There are lucrative welcome bonuses to take advantage of too, and you can redeem your points on groceries and beauty products at more than 4,500 PC locations across Canada (including Superstore and Shopper's Drug Mart) or on gas at Esso stations.
Free unlimited transactions
No minimum balance required
Free Interac e-Transfers
No interest rates
Monthly Fee
$0
Transaction Cost
$0
Foreign Transaction Fee
e-Transfer Fee
$0
NSF Fee
$40
Steps for opening an online savings account
Here’s what you need to do to open a savings account online:
Compare your options. The first thing you need to do is compare the best online savings accounts. Consider interest rates, fees, access to your funds and any other perks to find the account that’s right for you.
Apply online. When you find the right account, you can apply by filling out an online application form with your name, contact details and Social Insurance Number (SIN).
Upload proof of ID. You may also be asked to provide proof of ID, such as a driver’s licence or passport.
Link your accounts. Once you’ve opened your new savings account, link it with your day-to-day chequing account for quick and easy transfers.
Make your first deposit. Send money to your online savings account to start earning interest. You can also set up a regular automatic deposit so your balance will keep growing without you having to do a thing.
Online banks in Canada
There’s a growing number of online-only banks in Canada. These digital banks have no brick-and-mortar branches, so managing your online savings account and accessing customer service are handled online.
Here is a list of the online banks in Canada that offer savings account options:
Traditional banks with online bank accounts in Canada
Traditional banks and credit unions have started getting in on the act, offering their own digital banking brands or online savings accounts. For example:
Scotiabank owns Tangerine
CIBC owns Simplii Financial
Canadian Western Bank owns Motive Financial
Access Credit Union owns Hubert Financial
Alterna Savings and Credit Union Limited owns Alterna Bank
Cambrian Credit Union owns Achieva Financial
Equitable Bank Inc owns EQ Bank
Meridian Credit Union owns Motusbank
Assiniboine Credit Union owns Outlook Financial
Home Trust Company owns Oaken Financial
Laurentian Bank of Canada owns LBC Digital
The “big six banks” also offer their own online savings accounts to compete for customers. Some accounts you might like to consider include:
The difference between an online savings account and a regular savings account is that this type of account is designed to be managed via online and mobile banking. Typically offered by online banks and fintechs, online savings accounts often have higher interest rates than traditional savings accounts.
However, some major banks have also started offering their own online savings accounts.
Yes, you can open a savings account online. Many Canadian banks allow customers to complete the entire signup process online. You can compare savings account options, choose the one you like, fill in an online application and immediately start using your new savings account. An example of a bank that allows you to open a savings account entirely online is Tangerine.
Yes, it is safe to keep money in an online savings account, provided you open an account with a financial institution that is a member of the Canada Deposit Insurance Corporation (CDIC). Accounts protected by CDIC protect your money, up to $100,000 per account, should the bank fail, go into default or experience another type of financial loss.
Yes, online savings accounts are worth it. They commonly offer higher interest rates than traditional savings accounts and no monthly fees, allowing you to reach your savings goals sooner. They can have drawbacks, such as restrictions on how you can access your money and no in-branch banking, but they also offer a wide range of benefits for anyone looking to build a bigger bank balance.
It's easy to open an online savings account by providing a few simple details. You'll need to provide your name, contact details and SIN, plus provide proof of ID.
You'll also need to make sure you meet the eligibility requirements. These include being a Canadian resident and the age of majority in your province or territory.
The best online savings account depends on your financial goals and banking needs. If you're simply searching for the highest interest rate you can get, the right account for you may be different from the number one choice for someone who wants to have ATM access to their savings or other rewards like cash back on purchases.
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.
Whether you’re looking for a digital-only bank, a virtual bank account or a bank account you can access online, we help you find and compare the best online banks in Canada.
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