When you save money in a high-interest savings account, you probably expect the interest rate will be high. Unfortunately, if that account is with a financial institution like RBC Royal Bank, the rate won’t be as good as you might expect.
About RBC Royal Bank
RBC Royal Bank is a division of RBC, Canada’s largest bank. You can bank with RBC in a number of ways: Online, over the phone, on the RBC mobile app, at more than 1,300 branches, or at about 4,800 ATMs across the country.
The RBC Royal Bank High Interest eSavings Account isn’t a tiered account so your interest rate will always be 0.55% even if your balance is $50 or $5,000. On a balance of $5,000 or more, the rate is equivalent to what’s being offered by CIBC and TD Canada Trust.
However, the rate is much lower than the EQ Bank Savings Plus Account (which has a rate of 2.00%) and the Alterna Bank High Interest eSavings Account (which has an interest rate of 1.95%). Here’s how RBC’s rate compares to other financial institutions on a balance of $5,000 or more:
|Financial institution||Interest rate|
|Steinbach Credit Union||1.60%|
|Meridian Credit Union||1.50%|
|BMO Bank of Montreal||1.25%|
|Canadian Western Bank||1.00%|
|RBC Royal Bank||0.55%|
|TD Canada Trust||0.55%|
*currently 2.40% for new clients only for the first 182 days and 0.80% thereafter; rate for current clients is 0.80%
There isn’t a monthly fee on the RBC Royal Bank High Interest eSavings Account. Also, there’s one free RBC ATM cash withdrawal per month and free electronic self-serve transactions to any RBC Royal Bank personal deposit account in your name. But there are some fees to be aware of:
- $1 for each Interac e-transfer
- $1 for each cross-border debit transaction
- $1.50 for each ATM withdrawal on the Interact network
- $3 for each ATM withdrawal on the PLUS system network (within Canada and the United States)
The bottom line
The RBC Royal Bank High Interest eSavings Account doesn’t have as many fees as similar accounts at other banks. And the interest rate is the same no matter what your balance is. However, the rate isn’t very high compared to other financial institutions. If you want a better rate, check out the best high-interest savings accounts.
- Review: Alterna Bank High Interest eSavings Account
- Review: Oaken Savings Account
- Review: EQ Bank Savings Plus Account
- High-interest Savings Accounts and the Benefits of Compounding