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The best high-interest savings accounts in Canada for 2021

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When it comes to making daily purchases or common financial transactions, using chequing accounts or credit cards are undoubtedly great banking options. But if you have a plan for your future, financial goals, or a little extra money, high-interest savings accounts (HISAs) are excellent financial tools that can have your money earning money for you at a quicker rate.

A high-interest savings account is also an excellent savings tool for short and medium-term savings goals; many of the best high-interest savings accounts in Canada currently offer attractive interest rates, earning anywhere from five to thirty times higher returns than a regular savings account.

The best high-interest savings accounts in Canada

Rates updated:

Toronto, ON
×

Viewing

High interest

with a balance of

$5,000
1.25%

$63 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$0.00
E-transfer
$0.00

Featured

1.55%

$78 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$0.00
E-transfer
$0.00

Featured

1.15%

$58 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$0.00
E-transfer
$0.00

Featured

1.05%

$53 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$1.00
E-transfer
$1.50

Featured

0.75%

$38 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$0.00
E-transfer
$0.00

Featured

1.25%

0.05% after 120 days

$22 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$5.00
E-transfer
$5.00
Want to see how your savings account compares to the rest? Compare Best Savings Accounts

 

 

Saven Financial

Featured

1.55%

$78 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$0.00
E-transfer
$0.00
  • Interest Rate: 1.55%
  • Minimum deposit: None (though a $25 initial investment is required to become a Saven member)
  • Monthly fees: None
  • Insurance: Financial Services Regulatory Authority of Ontario
  • Available in Quebec: No. Only available in Ontario
  • Transactions: Free withdrawals and Interac e-transfers

Read more (+/-)


EQ Bank Savings Plus Account

1.25%

$63 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$0.00
E-transfer
$0.00

  • Interest Rate: 1.25%
  • Minimum deposit: None
  • Monthly fees: None
  • Insurance: CDIC
  • Available in Quebec: No
  • Transactions: Free withdrawals and Interac e-transfers

Read more (+/-)


MAXA Financial High-Interest Savings Account

Featured

1.00%

$50 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$1.00
E-transfer
$1.50

  • Interest Rate: 1.20%
  • Minimum deposit: None ($5 is required to open an account with MAXA)
  • Monthly fees: None
  • Insurance: Deposit Guarantee Corporation of Manitoba
  • Available in Quebec: Yes
  • Transactions: 1 free transaction per month ($1.50 afterwards). $1.50 per Interac e-transfer

Read more (+/-)


Motive Financial High-Interest Savings Account

  • Interest Rate: 1.55%
  • Minimum deposit: None
  • Monthly fees: None
  • Insurance: CDIC
  • Available in Quebec: No
  • Transactions: 2 free withdrawals per month ($5 after that) and $1 per Interac e-transfer

Read more (+/-)


Alterna Bank High-Interest eSavings Account

  • Interest Rate: 1.20%
  • Minimum deposit: None
  • Monthly fees: None
  • Insurance: CDIC
  • Available in Quebec: Yes
  • Transactions: Free withdrawals and Interac e-transfers

Read more (+/-)


Wealthsimple Cash

Featured

0.75%

$38 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$0.00
E-transfer
$0.00
  • Interest Rate: 0.75%
  • Minimum deposit: None
  • Monthly fees: None
  • Insurance: CIPF
  • Available in Quebec: Yes
  • Transactions: Free withdrawals

More details about the Wealthsimple Cash


Oaken Financial High-Interest Savings Account

  • Interest Rate: 1.25%
  • Minimum deposit: None
  • Monthly fees: None
  • Insurance: CDIC
  • Available in Quebec: No
  • Transactions: Free withdrawals and Interac e-transfers

Read more (+/-)


Tangerine Savings Account

  • Interest Rate: 2.10% for the first 5 months. 0.1% afterwards
  • Minimum deposit: None
  • Monthly fees: None
  • Insurance: CDIC
  • Available in Quebec: Yes
  • Transactions: Free withdrawals and Interac e-transfers

Read more (+/-)


Laurentian Bank of Canada (LBC Direct) Digital High-Interest Savings Account

  • Interest Rate: 1.40% (up to and including $500,000); 0.4% on deposits above $500,000
  • Minimum deposit: None
  • Monthly fees: None
  • Insurance: CDIC
  • Available in Quebec: Yes
  • Transactions: Free withdrawals and Interac e-transfers

Read more (+/-)

 

What is a high-interest savings account?

In the most basic terms, a high-interest savings account is a bank account that pays interest on deposits. Funds in a high-interest savings account are accessible at your own will. Cash in a savings account is not locked in the account.

Depending on the type of savings account you use, the number of free monthly transactions allowed to you may be limited. That said, savings accounts are ideal for both short-term and long-term savings goals, such as a vacation, wedding, down payment, or retirement. 

They also serve as an excellent option for building an emergency fund, known commonly as a rainy-day fund. The purpose of any savings account is to keep savings parked or untouched until needed.

How do high-interest savings accounts work?

A high-interest savings account works like a regular savings account. Generally, a high-interest saving account only differs by its provided interest rate. However, savings accounts (and all financial products) differ in terms and conditions from other institutions. The most significant differences between savings accounts generally lie in the number of withdrawals it allows its customers to make.

Some banks and credit unions permit unlimited transactions each month, while other institutions place a limit on transactions. Others offer variations on their accounts, depending on flexibility and transfers.

Banks and credit unions also differ significantly depending on the interest rates, offering fixed rates (one rate that never changes) or a tiered-interest rate option.

What types of savings accounts can you open in Canada?

There are many different types of savings accounts available to Canadians, all of which come with their own unique advantages.

Savings Accountsare accounts meant for saving money that also provide interest.

High-Interest Savings Accounts operate in the same manner as traditional savings accounts but have an interest rate higher than 1.00%.

Tax-Free Savings Accounts (TFSAs) are saving and investing accounts that earn tax-free interest on cash, dividends, and savings. A TFSA comes with a yearly contribution limit that increases each year for all Canadian citizens. It allows people to earn untaxed interest and gains on their investments.

Registered Retirement Savings Plan (RRSP) is a government-registered account purposed for retirement savings. It is a registered savings account that also earns tax-free interest and comes with a contribution limit.

U.S. Savings Accountsare savings accounts that hold American money. These accounts are available with most major banks and ideal for citizens with dual citizenship or ones who visit the United States often.

Hybrid Savings Account is a savings account that offers the flexibility of a chequing account. Typically, a hybrid account allows customers to make transactions and transfers while providing high-interest and additional features like Interac e-transfers and bill payments, along with high interest.

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