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.
Find the best high interest savings account rates in Canada
Saven Financial High Interest Savings Account
Saven Financial’s high interest savings account climbs to the top of this list for its impressive 3.75% interest rate (which completely eclipses what the big banks offer) and for the fact it doesn’t charge any monthly transaction fees, so you can move money freely either in the form of an e-transfer, electronic funds transfer, or cheque deposit.
- Interest Rate: 3.75%
- 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
Oaken Financial Oaken Savings Account
Oaken Financial is a CDIC-insured bank that operates exclusively online and a subsidiary of its parent company, Home Trust. An Oaken Financial savings account offers an interest rate of 3.40% on deposits and comes with unlimited withdrawals, transfers and no minimum deposit requirement.
Interest is calculated daily and paid out to customers monthly. Oaken Financial also offers joint bank account options.
Oaken Financial products are available to all Canadian citizens.
- Interest Rate: 3.40%
- Minimum deposit: None
- Monthly fees: None
- Insurance: CDIC
- Available in Quebec: No
- Transactions: Free withdrawals and Interac e-transfers
Steinbach Credit Union (SCU) Regular Savings Accounts
Steinbach Credit Union's Regular Savings account offers an interest rate of 3.10% on desposits and comes with no monthly fees. You can also maximize your savings with tiered rates paid on the minimum balance. However, you will have to spend a little more if you are considering using this account for any transactions or e-transfers.
- Interest Rate: 3.10%
- Minimum deposit: None
- Monthly fees: None
- Insurance: Provincially insured
- Transactions: $1.00 fee for transactions and $0.65 for e-transfers
EQ Bank Savings Plus Account
EQ Bank’s Savings Plus Accounts earns a competitive interest rate of 1.25% and requires no minimum balance. Additionally, there are no monthly account fees, no withdrawal fees, and no fees on Interac e-transfers – making it one of Canada’s best high interest savings accounts with absolutely no strings attached.
EQ Bank also offers joint account options (perfect for families or couples looking to simplify and manage their finances as one) along with the ability to send international money transfers for up to eight times cheaper compared to the big banks with TransferWise. There’s also an Electronic Funds Transfers feature, which lets you move large sums of money (we’re talking up to $30,000) between banks in one go.
An EQ Bank Savings Plus Account doesn’t come with a physical debit card or chequing account. The bank only operates online and specializes in savings accounts and GICs. EQ Bank also has an easy-to-use mobile app for your convenience.
- Interest Rate: 2.50%
- Minimum deposit: None
- Monthly fees: None
- Insurance: CDIC
- Available in Quebec: No
- Transactions: Free withdrawals and Interac e-transfers
Alterna Bank High-Interest eSavings Account
Alterna Bank is a division of Ottawa-based Alterna Savings, one of Canada’s oldest Credit Unions. The online bank offers an interest rate of 2.00%. An Alterna Bank HISA is CDIC insured, comes with no monthly or annual fees, and offers unlimited transactions and internal transfers. The digital bank offers joint account options too.
Clients have unlimited bill payments, transfers, etransfers and debits. Alterna Bank customers can access any ATM in the EXCHANGE Network, which includes ATMs from the National Bank of Canada.
Alterna Savings is available to all Canadian citizens.
- Interest Rate: 2.00%
- Minimum deposit: None
- Monthly fees: None
- Insurance: CDIC
- Available in Quebec: Yes
- Transactions: Free withdrawals and Interac e-transfers
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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 Accounts are 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 Accounts are 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.
A 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.