The interest rate is the most important factor to consider when comparing savings accounts — the higher the rate, the faster your balance will grow. In this guide, we’ll show you the best savings account interest rates from the Big Five, popular digital banks and major credit unions to help you choose an account and reach your savings goals sooner.
Summary: Savings account interest rates in Canada
Check out the table below for savings account interest rates currently available from a wide range of major banks, digital banks and credit unions in Canada.
Bank | Savings account | Standard interest rate | Promo rate | Learn more |
---|---|---|---|---|
EQ Bank | Notice Savings Account | 3.50% - 3.65% | N/A | |
KOHO | Earn Interest | 5% | N/A | |
Simplii Financial | High Interest Savings Account | 0.35% – 3.75% | 6% (for the first 5 months) | |
Achieva Financial | Daily Interest Savings Account | 3% | N/A | |
Alterna Bank | High Interest eSavings Account | 1.85% | N/A | |
ATB Financial | Springboard Savings Account | 0.6% – 1.8% | N/A | Learn More |
BMO | Savings Amplifier Account | 1.35% | 4.75% (for up to 120 days) | |
Bridgewater | Smart eSavings Account Interest Rate | 3.60% | N/A | |
Canadian Tire Bank | Canadian Tire High Interest Savings Account | 3.70% | N/A | |
Canadian Western Bank | CWB Summit Savings Account | 1.10% | N/A | |
CIBC | eAdvantage Savings Account | 0.3% – 1.5% | 5.25% (for the first 4 months) | |
CI Direct Investing | High Interest Savings Account | 2.75% | N/A | Read review |
Coast Capital Savings | High-Interest Savings Account | 1.1% | N/A | Learn More |
DUCA | Earn More Savings Account | 0.05% | 5.25% until Nov. 18, 2024, then 4% until Feb. 28, 2025 | Learn More |
FirstOntario Credit Union | High Interest eSavings Account | 1.50% – 1.60% | N/A | Learn More |
Hubert | Happy High-Interest Savings | 2.35% | N/A | Learn More |
ICICI Bank Canada | HiSAVE Savings Account | 1.25% | N/A | Learn More |
Innovation Credit Union | Savings Account | 1.05% | N/A | Learn More |
Laurentian Bank | High Interest Savings Account | 1% – 3.75% | N/A | |
Manulife Bank | Advantage Account | 2.35% | N/A | Learn More |
Meridian Credit Union | High Interest Savings Account | 1.65% | 5.5% (for the first 4 months) | Learn More |
Motive Financial | Savvy Savings Account | 3.6% | 5.75%(for the first 120 days) | |
Motusbank | High Interest Savings Account | 1.65% | N/A | Learn More |
National Bank | High Interest Savings Account | 1.4% | N/A | |
Neo | High Interest Savings Account | 3% | N/A | |
Oaken Financial | Oaken Savings Account | 3.4% | N/A | Learn More |
PC Financial | PC Money Account | 4.25% | N/A | Learn More |
RBC | High Interest eSavings | 1.15% | (for the first ) | |
Scotiabank | MomentumPLUS Savings Account | 1% – 2% | 5.5% (for the first 3 months) | |
Servus Credit Union | Premium Savings Account | 0.3%– 1.6% | N/A | Learn More |
Steinbach Credit Union | High Interest Savings Account | 2.70% - 2.90% | N/A | Learn More |
Tangerine | Savings Account | 0.3% | 6% (for the first 5 months) | |
TD | ePremium Savings Account | 1.55% (on balances of $10,000 or more) | N/A | |
Vancity | Jumpstart High Interest Savings Account | 1.4% | 5% (until 20 November 2024) | Learn More |
Wealthsimple | High Interest Cash Account | 2.75% – 3.75% | N/A |
Big Five Bank savings account interest rates
Want to know how the big banks stack up against each other in terms of their Canadian currency savings account interest rates. Check out the tables below.
RBC savings account interest rates
RBC offers the following rates across its selection of savings accounts.
RBC savings account | Standard interest rate | Promo rate |
---|---|---|
High Interest eSavings | 1.15% | (for the first ) |
NOMI Find & Save | 0.45% | N/A |
Day to Day Savings | 0% – 0.01% | N/A |
Scotiabank savings account interest rates
Check the table below for a breakdown of Scotiabank’s savings account interest rates.
Scotiabank savings account | Standard interest rate | Promo rate |
---|---|---|
MomentumPLUS Savings Account | 1% – 2% | 5.5% (for the first 3 months) |
Savings Accelerator Account | 0.95% | N/A |
Money Master Savings Account | 0.01% | N/A |
Scotiabank Preferred Package
Earn up to 5.45% 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 an $800 bonus with the Preferred Package.BMO savings account interest rates
The current BMO savings account interest rates for its two main savings accounts are shown below.
BMO savings account | Standard interest rate | Promo rate |
---|---|---|
Savings Amplifier Account | 1.35% | N/A |
Savings Builder Account | 1.55% (when you save at least $200 per month) | |
Premium Rate Savings Account | 0.01% | N/A |
TD savings account interest rates
Check current TD savings account interest rates below.
TD savings account | Standard interest rate | Promo rate |
---|---|---|
ePremium Savings Account | 1.55% on balances of $10,000 or more0% on balances less than $10,000 | N/A |
High Interest Savings Account | 0% – 0.05% | N/A |
Every Day Savings Account | 0.01% | N/A |
CIBC savings account interest rates
Check the table below for the current CIBC savings account interest rates.
CIBC savings account | Standard interest rate | Promo rate |
---|---|---|
eAdvantage Savings Account |
Additional interest rate of 0.50% applies on balances up to $200,000 when you save at least $200 per month | 5.25% (for the first 4 months) |
What is the average yearly savings rate for Canadians right now?
The average savings account interest rate in Canada right now is 1.64% based on savings accounts offered by Big Banks, digital banks and credit unions in Canada.
This figure was calculated using the interest rate data in the summary tables above (as of October 25, 2024). It only takes into account the accounts listed in the table, not the full range of savings accounts available in the Canadian market.
Please note that the average interest rate quoted does not take into account any promotional interest rates. And in cases where an account pays tiered interest — the higher your balance is, the higher the rate you get — we used the account’s lowest interest rate tier for our calculations.
Types of savings account interest rates
There are two types of savings account interest rates: simple and compound.
Simple interest is only paid on the amount you deposit (the principal). Compound interest applies to the principal as well as the interest you’ve already earned in your account.
The power of compound interest lets you grow your savings balance faster. For example, let’s say you invest $1,000 in a savings account that pays 5% interest for 10 years:
- With simple interest you would earn $500 interest
- With compound interest you would earn $647 interest — an extra $147
The key figure you need to look at when comparing savings account rates is the APY, or annual percentage yield. This figure takes into account the effect of compounding and shows you how much interest you can earn from an account per year.
How are savings account interest rates calculated?
There are two main factors that affect the savings account interest rates offered by banks:
- The Bank of Canada’s policy rate. Just like mortgage rates, savings account rates tend to move up or down in line with interest rate hikes and reductions.
- Competition. Banks will also look at what their competitors are doing when setting their rates. If they want to attract new customers to deposit savings they will up their rates to stand out from the competition.
Interest on most savings accounts is calculated daily and paid out monthly. Interest is calculated on your account’s closing balance at the end of each day, and it typically compounds daily, monthly or annually.
- Earn up to 3.65% interest
- $0 account fee
- No minimum balance required
- No monthly deposit requirements
- CDIC protection up to $100,000
- Earn up to 6.00% interest
- No monthly fees
- Unlimited transactions and Interac e-Transfers
- No min. balance required
- CDIC protection up to $100,000
- Earn 5.50% for 3 months, 1.00% thereafter
- Can earn interest rate boosts
- No account fee
- No minimum balance required
- CDIC protection up to $100,000
Where to find the best high interest savings account rates
If you’re searching for high interest savings account rates that will help you grow your balance sooner, you won’t find them at the big banks. The best savings account rates are usually offered by digital banks.
For example, EQ Bank offers 3.5% or 3.65% with a Notice Savings Account, KOHO pays 5% interest across all of its plans, and Neo pays 3% interest on its High Interest Savings Account. To find the best rates in Canada, compare high interest savings accounts.
TFSA savings account rates
Tax free savings accounts (TFSAs) are a popular alternative to standard savings accounts in Canada. They offer the benefit of allowing your savings grow without having to pay taxes on your investment earnings.
Check the table below for the latest TFSA interest rates from the Big Five and other popular digital banks.
Bank | TFSA bank account | Interest rate |
---|---|---|
RBC | Tax Free Savings Account | 0.75% |
BMO | Tax Free Savings Account | 0.5% |
TD | TD Canada Trust TFSA | 0.5% |
Scotiabank | Savings Accelerator Account – Tax Free Savings Account | 0.45% |
CIBC | TFSA Tax Advantage Savings Account | 0.65% |
EQ Bank | TFSA | 2.5% |
Simplii Financial | Tax-Free Savings Account | 0.4% |
Tangerine | Tax-Free Savings Account | 0.3% |
Wealthsimple | Tax-Free Savings Account | 0% |
How to compare savings accounts and interest rates in Canada
These are the key factors you need to consider when comparing savings accounts.
Interest rate
Shop around to find the account with the highest rate — the higher the interest rate, the faster your savings account balance will grow.
But check the fine print to find out if there are any terms and conditions you need to meet to get the maximum advertised rate. For example, you may need to deposit a specified amount each month to qualify for the highest rate.
Other accounts have tiered interest rates — the larger your account balance, the higher the interest rate. Check the tiers to find out what rate your balance will allow you to qualify for.
Promo rate
Some savings accounts offer a high promotional interest rate for a limited introductory period, such as 4 or 5 months. These accounts can be very useful if you’re saving for a short-term goal, such as a vacation in a few months’ time.
But once the promo period ends, the account will revert back to its standard rate — which is usually much lower than the promo rate. So if you want to keep saving, you may want to move your money to a new high interest savings account at this point.
When comparing promo rate savings accounts, remember to check how long the promo period lasts, and whether you need to meet any special conditions (such as a minimum monthly deposit) to qualify for the rate.
Fees
Most savings accounts don’t have monthly fees, but some charge transaction fees when you make a withdrawal or transfer funds to another account. If you need easy access to your money, look for an account with no transaction fees or that supports a certain number of free transactions per month.
Linked account requirement
Some banks will require you to open a chequing account with them before you can open a savings account. If this is the case, check whether the chequing account comes with a monthly fee attached.
How to manage your money
Easy access to your money is always important, so choose a bank with user-friendly mobile and online banking portals. If you like to have the option to access face-to-face customer service, you’ll want to choose a bank with bricks-and-mortar branches rather than a digital bank.
Finally, check how you will be able to withdraw money from your savings account when needed. Will you be able to withdraw cash at an ATM, or will you first need to transfer funds to a different account?
Insurance
Choose a savings account with a financial institution that is a member of the Canada Deposit Insurance Corporation (CDIC). The CDIC insures deposits of up to $100,000 in the unlikely event that your bank fails. Each Canadian province also has its own deposit insurer that covers deposits at provincial credit unions.
How savings account interest rates make a BIG difference for your money
While a small difference in savings account interest rates might not seem like much, it can make a big difference to how quickly your balance grows. Let’s take a look at a representative example.
Mike wants to open a high interest savings account to help pay for his daughter’s education. He has $1,000 to deposit straight away, and plans to automatically transfer $150 from his paycheque each week to boost his savings.
Mike’s regular Big Five bank pays 1.40% interest, but Mike shops around and finds a digital bank with high interest savings account rates of 4%. Interest is compounded monthly on both accounts. Mike crunches the numbers to work out how much the higher interest rate will help him save by the time his daughter graduates 5 years in the future.
As you can see in the table below, choosing the account with the higher rate will help him save an extra $1,963.
Account A | Account B | |
---|---|---|
Interest rate | 1.40% | 4% |
Initial deposit | $1,000 | $1,000 |
Weekly deposit | $100 | $100 |
Interest earned after 5 years | $988 | $2,951 |
Total account balance after 5 years | $27,988 | $29,951 |
Savings account interest rates calculator
Want to find out just how much you could save with a high interest savings account? Use the calculator below to see how a high rate and compound interest can help you reach your savings goals sooner.
Total savings | |
Total monthly contributions | |
Interest earned |
Bottom line
Shopping around for the best savings account interest rates in Canada can make a big difference to how soon you reach your savings goals. The best rates are generally offered by digital banks, but make sure you compare a range of options before deciding on the best place to deposit your money.
Frequently asked questions
More banking guides from our experts
Best free (no-fee) chequing accounts in Canada
Compare the features of 8 of the best no-fee chequing accounts in Canada, and find out how to avoid transaction fees.
Read more…14 best new bank account offers for November 2024
Earn cash, rewards points, bonus interest rates and more with these new bank account offers and promotions.
Read more…Best youth bank accounts in Canada
Learn about the different types of bank accounts for your teenager and how to choose the right one.
Read more…Best chequing account in Canada by feature for 2024
Compare chequing accounts and learn about our top picks. Compare different features and see which one is right for you.
Read more…Open a bank account online in Canada in 5 easy steps
Compare and open a bank account online in Canada in as little as 5 minutes. Learn what you need to apply and how to get started today.
Read more…Best high-interest savings accounts in Canada
Compare the best high-interest savings accounts in Canada to build a bigger bank balance.
Read more…More guides on Finder
-
National Bank savings accounts
We compare fees, rates and features of National Bank savings accounts.
-
How to save for a big purchase
A step-by-step guide to saving up for big-ticket items like a home, car, wedding, school and more.
-
How to budget for a house
Find out about how to budget for a house – one of the largest and most exciting purchases of your life. Discover what expenses to look out for and learn our saving tips.
-
Compare bank interest rates
From mortgages to high-interest savings accounts, here’s how to find the best interest rates in Canada.
-
Can I open multiple savings accounts with the same bank?
It’s possible to open more than one savings account with the same bank, but doing so could reduce the amount of interest that you earn.
-
Registered Retirement Savings Plans (RRSP) in Canada
Find out how RRSPs work and how they can help you save for your retirement.
-
Best high-interest savings accounts in Canada
Compare the best high-interest savings accounts in Canada to build a bigger bank balance.
-
How to save tax in Canada on interest income in a savings account
Savings account interest is taxable in Canada. Find out how taxation works and how to minimize what you owe.
-
Compare high interest savings accounts
Your guide to choosing a high-interest savings account and boosting your bank balance.