5% to 12% interest on savings accounts: Fact or fiction?
Can I get a 5% interest savings account in Canada, or is it just wishful thinking? We breakdown where to find 4%, 5%, 7%, 10% and even 12% return rates in Canada.
When the Bank of Canada’s policy rate peaked at 5% throughout 2023 and 2024, times were good for savers. Since then, the policy rate has been cut roughly in half to what it is in 2026 at 2.25%. Savings account yields have followed, prompting the question: Can I still get a 5% interest savings account in Canada?
In this guide, we’ll look at current savings account interest rates in Canada to help you find the best rate and grow your bank balance sooner.
Can I get 5% interest on savings accounts?
It is possible to earn around 5% interest on savings accounts, but usually only as a promotional rate offered for a few months. After the promotional period, the 5% rate will drop to a much lower ongoing rate. Online banks typically offer the highest ongoing savings account interest rates because they don’t have the same overhead as major brick-and-mortar financial institutions.
Current savings account interest rates in Canada
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Why don't all banks offer a 5% interest rate on savings accounts?
Savings account interest rates are influenced by the Bank of Canada’s policy rate, which is set based on factors like inflation and the overall health of the economy. When the policy rate is at 5%, as it was during 2023 and 2024, you can expect to find 5% interest savings accounts. In fact, competition between financial institutions means that even higher savings rates may be available. But when the policy rate is well below 5%, there’s little chance of finding a 5% or 5.5% interest savings account.
Can I get 4% interest on a savings account in Canada?
Yes, you can get a 4% interest savings account in Canada. But in most cases, rates of 4% and over are only available for a limited promotional period, after which time the accounts revert to a lower standard rate.
If you want an ongoing 3.50% interest rate on a savings account in Canada, check out the KOHO Everything Plan. As well as a high rate, this hybrid account also pays up to 2% cash back on groceries, transportation, food and drinks. The downside is that it comes with a $22 monthly fee.
So, if you’re chasing the best rate with no monthly fees, you’ll want to compare savings accounts that offer high promotional interest rates.
Options for some of the highest interest rates currently available on the market include:
| Account | Promo rate | Standard rate |
|---|---|---|
| EQ Bank Personal Account | Earn 2.75% when you set up $2000/month or more in either direct deposit for your pay or recurring pre-authorized debits. | 1% |
| Scotia High Interest Savings Account | Earn up to 5% for the first 3 months when you open your first Scotia High Interest Savings Account. T&Cs apply. | 0.75% |
| BMO Savings Amplifier Account | Earn 5% interest when you open both a BMO Savings Amplifier Account and a BMO Performance, Premium, Plus or Practical Chequing Account. Plus, earn up to a $900 opening bonus with the chequing account. Valid until August 31, 2026 | 0.45% |
| RBC High Interest eSavings Account | Earn 4.60% interest for 3 Months when you open your 1st RBC High Interest eSavings account. | 0.55% |
| Tangerine Savings Account | Earn 4.50% interest for 5 months (on up to $1,000,000 in deposits) when you sign up by November 30, 2026 | 0.3% |
| CIBC eAdvantage Savings Account | Get a special 4.60% offer for 3 months when you open your first account. | 0.3% |
Just be aware that these 4% savings account interest rates typically only apply for a short introductory period. After that time, you’ll get a lower interest rate.
Alternatives to high-interest savings accounts in Canada
Searching for a 5% interest savings account but disappointed by the rates currently available? You might want to consider one of these high-interest savings account alternatives instead.
ETFs
Exchange-traded funds are investment funds that are traded on stock exchanges like individual stocks. They’re made up of a collection of assets, such as stocks, bonds or commodities, making it easy to create a diversified portfolio of assets. Many ETFs are passively managed and designed to track the performance of an index, such as the S&P 500, while others are actively managed with the goal of outperforming a benchmark.
Guaranteed Investment Certificates (GICs)
Guaranteed investment certificates are low-risk investments where you deposit money for a fixed term in exchange for a guaranteed rate of return. Terms can range from as short as 1 month to as long as 10 years, and the interest rate is typically higher than what you’d earn in a high-interest savings account, with some financial institutions offering up to 5.5%, espec. This makes GICs attractive for predictable, stable growth without market risk.
However, the trade-off is limited access to your funds during the term. In most cases, withdrawing early results in penalties or reduced interest, so GICs are best suited for money you won’t need in the short term.
Dive deeper: Our full guide to GICs in Canada
High-interest chequing accounts
High-interest chequing accounts combine the interest-earning benefits of a savings account with the day-to-day flexibility of a chequing account. They allow you to earn interest on every dollar you deposit, but commonly come with a prepaid card you can use for in-store and online purchases. It’s also often possible to earn cash back on your spending.
Examples of high-interest chequing accounts include the EQ Bank Personal Account, KOHO plans, the PC Money Account and the Wealthsimple Chequing Account.
EQ Bank Personal Account
- Earn 2.75% interest on your money with qualifying direct deposits of $2,000/month, and 1.00% otherwise. Plus, enjoy no fees on everyday banking plus unlimited transactions and no minimum balances. Sign up online in minutes.
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T&Cs apply.
Tax-free savings accounts (TFSAs)
A tax-free savings account is a flexible savings and investment account that allows your money to grow tax-free. Any interest, dividends or capital gains earned inside aren’t taxed, and withdrawals can be made at any time without penalties or tax implications. Compared to a high-interest savings account, it offers similar flexibility but with better long-term growth because returns aren’t taxed.
Registered retirement savings plans (RRSPs)
A registered retirement savings plan is a retirement-focused account where contributions are tax-deductible and investments grow tax-deferred. You pay tax when you withdraw your funds, usually in retirement at a lower rate. Compared to a high-interest savings account, an RRSP prioritizes long-term tax savings over easy access.
First Home Savings Accounts (FHSAs)
A first home savings account helps first-time buyers save for a home. It combines key tax benefits from both TFSAs and RRSPs as contributions are tax-deductible, investment growth is tax-free and withdrawals are tax-free when used for a qualifying home purchase. It offers stronger tax advantages than a high-interest savings account, but for a specific goal rather than general saving.
Which bank gives 7% or 6% interest on savings accounts?
At the moment, none. The Bank of Canada’s policy rate is currently 2.25%, so savings account interest rates fall well short of the 6% or 7% mark. You can get promo rates of around 5%, but these only last for a limited period, typically less than six months.
So, if you want to get a return of 6%–7% or more on your investment, you’ll need to consider other options. One option you might want to consider is investing in stocks.
As an example, the S&P/TSX 60 Index tracks the performance of large-cap companies on the Toronto Stock Exchange. As of June 2026, it had delivered a 5-year annualized return of 11.09%.
So, if you can find an index ETF or mutual fund that reliably tracks the performance of an underlying stock market index, you could potentially get better returns than you would from a savings account. Learn more in our guides on how ETFs work and ETFs vs mutual funds.
Check out our detailed guide to the best stock and ETF brokerage platforms in Canada
Closest alternatives to a 10% interest savings account in Canada
You won’t find a 10% interest rate savings account in Canada right now, so you’ll need to look elsewhere if you want the potential to generate such a high yield.
Stocks and ETFs can offer higher rewards, but they also come with a higher level of risk. And while past performance is no guarantee of future performance, our guide to the best Canadian ETFs shows that sizable returns are indeed possible. For example, the iShares S&P/TSX 60 Index ETF (XIU), one of the largest and oldest Canadian ETFs, delivered a 1-year return of 31.72% and a 3-year return of 23.98% as of June 2026.
Can I get a 12% interest savings account?
No, there are no savings accounts in Canada offering a 12% interest rate. Investors looking for that big of a return are more likely to come across cryptocurrency investment options. Crypto savings accounts and staking platforms sometimes promise yields as high as 12% or more, but they come with plenty of risk attached.
Keep in mind that the return on these investments may not be as straightforward as cash deposited in your account. For example, with crypto staking, you earn yield on your holdings, usually in the form of the network’s native currency.
Also note that cryptocurrency regulations in Canada are still being developed, and you won’t have the security of CDIC protection that you’d have with a savings account.
This table highlights some of your options:
| Provider | Financial product | Return rate* | Details/limitations |
|---|---|---|---|
| Kraken | Crypto staking | Up to 21% |
|
| Coinbase | Crypto staking and earn products | Up to 13% |
|
| Bitbuy | Crypto staking | Up to 13.43% |
|
*Rates in this table were last verified on June 26, 2026.
How to choose between a 5% savings account and other investment options
Is a 5% savings account right for you, or are you better off considering other investments? Ultimately, it all comes down to your savings goals, your financial situation and your appetite for risk.
Pros of high-interest savings accounts
- Low risk: High-interest savings accounts offer a low-risk way to build your bank balance and, unlike other investments like stocks or property, there’s very little risk of losing your money.
- Earn compound interest: Your savings can grow over time through the power of compound interest, helping you build your bank balance without actively managing your money.
- Easy access to funds: Most high-interest savings accounts allow you to withdraw your money whenever you need it, making themi deal for emergency funds and short-term savings goals.
- CDIC protection: If you open a 5% savings account with a financial institution that’s a member of the Canada Deposit Insurance Corporation (CDIC), eligible deposits are insured up to $100,000 per insured category, per member institution, in the event that the bank fails.
- No market volatility: Unlike stocks and other investments, the value of your savings won’t fluctuate due to market conditions.
Cons of high-interest savings accounts
- Variable interest rates: Most high-interest savings accounts have variable rates, so if rates fall, your account’s interest-earning power will fall too.
- Transaction limits and fees: Some accounts limit the number of fee-free transactions you can make each month, and exceeding those limits may result in fees.
- Eligibility requirements: You may also need to meet certain requirements to earn the maximum advertised interest rate, like depositing a certain amount each month or maintaining a minimum balance.
- Taxes: If you keep your savings in a non-registered account, any interest you earn will be fully taxable at your marginal tax rate.
- Lower growth potential: While savings accounts are safer than other types of investments, they don’t offer the same potential for high returns.
How to qualify for a 5% interest rate or higher on savings accounts
If you’re aiming for a 5% interest rate on your savings account, you may need to meet some specific criteria. Common requirements are listed below.
- Promo period: Savings accounts with promotional bonus interest rates only offer a high rate for a limited introductory period. After the first 3 to 5 months, your account interest rate will usually switch back to a much lower standard rate.
- New customer requirement: Promo interest rates are usually only available if you’ve never held the same type of account with the same bank before. In some cases, you’ll even need to be a first-time customer to qualify.
- Minimum balance requirement: Some savings accounts have tiered interest rates—the larger your balance, the higher the rate you get. So, in order to get the highest advertised rate, you may need to meet a minimum balance requirement.
- Direct deposit requirement: Some bonus rate offers will require you to set up a recurring direct deposit to your savings account. You’ll need to deposit a minimum amount per month and maintain the deposit for a specified period.
- Chequing account requirement: You may also be required to open a chequing account with the same bank to qualify for bonus interest. Before deciding if it’s right for you, check whether the chequing account comes with a monthly fee and how many transactions you can make each month.
- Linked account requirement: Some institutions require you to open or maintain a chequing account alongside the savings account, which may come with its own fees.
Tips to get the most out of your 5% interest savings account
Now that you’ve found the right 5% interest savings account for your needs, use the following tips to help grow your balance faster.
Don’t dip into your savings
When you’ve got a big pile of money sitting in your savings account, it can be tempting to dip into it every now and then when you feel like splashing out. But withdrawing from your savings account is only going to set you back in the long run, so be disciplined. Keep your savings goal in mind and only dip into your savings when absolutely necessary.
Set up a recurring deposit
Automate your savings by setting up a recurring deposit each week from your chequing account to your savings account every time you get your weekly paycheque. This will ensure that a portion of your pay goes directly to savings before you have a chance to spend it.
Make a budget
Analyze your weekly spending to work out where every last cent of your income goes. Identify any areas where you can cut back—you could cancel your gym membership and unused streaming services, or look at dining out less. You can also consider the 50/30/20 rule, with 50% of your income going to essential expenses, 30% to entertainment and other fun stuff and 20% to your savings.
Shop around
While your account may offer a great interest rate now, there may be a better rate available in the future. Every few months, take 10 minutes to do a quick review of current savings account interest rates. If there’s a higher rate available at another bank, don’t be afraid to switch.
Bottom line
Though 5% interest savings accounts were recently available in Canada, there currently aren’t any financial institutions offering such a high rate. But even though interest rates have fallen in recent times, it’s still possible to get an attractive rate of 4% or more on your savings balance. Just make sure you’re aware of any terms and conditions you need to meet to get the maximum rate, and compare a range of accounts before choosing the best high-interest savings account for you.
BMO Performance Chequing Account
- Earn up to $900 bonus
- Exclusive: Get an extra $175 reward from Finder
- Enjoy up to 5.00% promo interest
FAQs about 5% to 7% savings interest rates in Canada
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