{"id":824239,"date":"2019-12-23T02:00:37","date_gmt":"2019-12-23T07:00:37","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=824239"},"modified":"2026-03-09T18:31:49","modified_gmt":"2026-03-09T22:31:49","slug":"bank-interest-rates","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/banking\/bank-interest-rates","title":{"rendered":"Compare bank interest rates"},"content":{"rendered":"

Whether you\u2019re looking for a personal loan, car loan, mortgage, savings account or investment option, understanding bank interest rates in Canada will impact what the best options are for your money.<\/p>

In this guide, we\u2019ll show you how to compare bank interest rates and high-interest savings accounts from other financial institutions to get the best bang for your buck.<\/p>

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Key takeaways<\/h3>\n <\/div>\n\n
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  • Interest rates in Canada are linked to the Bank of Canada benchmark rate.<\/li>\n
  • When the Bank of Canada benchmark rate goes down, both lending interest rates (APR) and savings rates (APY) also go down.<\/li>\n
  • Whether you\u2019re looking for a good savings rate or lending rate, always shop around and compare options before signing up.<\/li>\n <\/ul>\n\n \n <\/div>\n
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    What is the Bank of Canada interest rate?<\/h3>

    The current Bank of Canada benchmark interest rate is 2.25%<\/strong>. That results in a current bank prime rate offered by banks across Canada of 4.45%<\/span>. The Bank of Canada announces potential rate holds or changes eight times per year.<\/p><\/div><\/div><\/div>

    When will the Bank of Canada lower interest rates?<\/h4>

    The Bank of Canada has begun lowering rates, with rate decreases of 0.25% to 0.5% percentage points throughout 2024 and into 2025. According to econometric models, it\u2019s predicted that Canada\u2019s overnight interest rate will likely drop to 2.50% by March 2026.<\/p>

    Bank of Canada historical interest rates<\/h4>

    The Bank of Canada increased its benchmark interest rate seven times in 2022 and three times in 2023 after holding it steady in 2021 following lower rates during the pandemic. That led us to see the highest Bank of Canada benchmark rate in over two decades. In the first part of 2024, rates were held steady, and then were finally lowered in the second half of the year and into 2025.<\/p>