When it comes to making daily purchases, using chequing accounts or credit cards are undoubtedly great banking options. However, if you have some extra money left over (and don’t mind earning some interest), high-interest savings accounts (HISAs) can be an excellent option for you.
HISAs are great savings tools for long-term and short-term savings goals, with many of the best high-interest savings accounts in Canada offering interest rates over 2% on deposits.
Below, you’ll find the best high-interest savings accounts in Canada, where you can also learn more about each savings account, their interest rates, and how using them can benefit you.
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What is a Savings Account?
A savings account is a bank account that pays you interest on account deposits. Unlike guaranteed investment certificates (GICs), savings accounts permit access to your funds at any time, making them an excellent option for an emergency fund or regular saving.
However, unlike chequing accounts, savings accounts are not meant to be used for day-to-day transactions. Depending on the type of savings account you choose, the number of daily transactions allowed to you may be limited. Ultimately, the purpose of a savings account is to keep money in there for an extended amount of time.
What’s the Difference Between a High-Interest Savings Account and a Savings Account?
A Savings Account differs from a high-interest saving account by its interest rate. Savings accounts have an interest rate of 1.05% and under, whereas interest rates on a high-interest account must be over this amount.
Interest earned in a HISA is subject to taxation, whereas interest earned in regular savings accounts is not subject to the same tax.
Depending on the issuer, each savings account comes with its own restrictions and rules.
However, it’s probably a better idea to own a HISA over a regular savings account. Using a HISA with a return rate of 2% or more can keep up with inflation, and keep your money in pace with rising inflation.
So, What Types of Savings Accounts Can You Open in Canada?
There are many different types of savings accounts in Canada, all that come with their own benefits, disadvantages, and purposes.
The most popular is the high-interest savings account (HISA). As its name suggests, a high-interest rate offers high interest.
Another popular savings account option is the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Account (RRSP).
Other savings accounts for youth, students, and seniors are also available.
Best High-Interest Savings Accounts in Canada 2019 (View All)
- EQ Bank Savings Plus Account
- Motive Financial Savvy Savings Account
- Implicity Financial High-Interest Savings Account
- Alterna Bank Savings Plus Account
- Oaken Financial High-Interest Savings Account
- Simplii Financial High-Interest Savings Account
- Wealthsimple High-Interest Savings Account
- Manulife Bank of Canada Advantage Account
- MAXA Financial High-Interest Savings Account
- Motusbank High-Interest Savings Account
- Scotiabank Momentum High-Interest Savings Accounts
- CIBC eAdvantage Savings Account
- Tangerine High-interest Savings Account
- TD Bank High-interest Savings Account
- RBC High-interest Savings Account
- DUCA Earn More Savings Account
- BMO Savings Account
- Luminus Financial Investment Savings Account
1. EQ Bank Savings Plus Account
EQ Bank offers one of the best high-interest savings accounts rates in Canada. The EQ Savings Plus Account currently offers a competitive 2.3% interest rate. Funds and interest are insured by the Canada Deposit Insurance Corporation (CDIC).
No minimum deposit is required, and the account is free to open and use. EQ provides unlimited Interac e-transfers and internal transfers. An EQ Bank Savings Plus Account doesn’t come with a physical debit card, as the bank operates online only and specializes in various savings accounts.
Still, you can send unlimited e-transfers to your daily chequing account for free. EQ Bank also has an easy-to-use mobile app for your convenience.
It’s also worth noting that EQ Bank’s Savings Account is a winner of Ratehub.ca’s Personal Finance Awards for the category of the Top High-Interest Savings Account.
EQ Bank is not currently available in Quebec.
2. Motive Financial Savvy Savings Account
A division of Canadian Western Bank, Motive Financial operates solely online and via mobile application. Its high-interest savings account offers tiered interest rates. For clients with investing of $1 million or less, a HISA rate of 2.80%. Investments over one million receive an interest rate of 0.25%. Motive Financial also offers joint account options.
Motive Financial is not available to citizens of Quebec.
3. Implicity Financial High-Interest Savings Account
An Implicity Financial High-Interest Savings Account comes with an excellent interest rate of 2.40%. The account comes with no monthly fee and includes unlimited free transactions, unlimited deposits and withdrawals. E-transfers and withdrawals from external ATMs come with a flat rate of $1.50. The Implicity Financial HISA also honours joint account options.
Implicity Financial is an online-only credit union. Even though the credit union is provincially insured by the Deposit Guarantee Corporation of Manitoba (DGCM), all Canadians can open an Implicity HISA.
Implicity Financial is available to all Canadian citizens.
4. Alterna Bank Savings Plus 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 2.30%. 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 as well.
Each month, clients can use two free Interac e-Transfers to move their money from the account.
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.
5. Oaken Financial High-Interest Savings Account
Oaken Financial is a CDIC-insured online bank, owned by parent company, Home Trust. The high-interest savings account offers an interest rate of 2.3%, on deposits and comes with unlimited withdrawals and transfers.
The savings account also comes with no minimum deposit requirement. Interest is calculated daily and paid out to customers monthly. An Oaken Financial HISA also comes unlimited interact e-transfers, internal transfers, and no additional fees for external ATM use. Oaken Financial also offers joint bank account options.
Oaken Financial products are available to all Canadian citizens.
6. Simplii Financial High-Interest Savings Account
CIBC’s direct-to-consumer brand, Simplii Financial, offers an affordable, no-frills banking option to Canadian citizens. It has become one of Canada’s favourite online banks, for their high-interest savings accounts and other financial products.
Right now, Simplii high-interest savings account offers a 1.2% interest rate on deposits. Accounts with Simplii are CDIC insured. Simplii Financial offers its customers unlimited withdrawals, account transfers, and Interac e-transfers. The best part? There are no monthly fees on any of their accounts.
Simplii Financial products are not available in Quebec.
7. Manulife Bank of Canada Advantage Account
Manulife Bank of Canada Advantage Account offers a high-interest savings account with a promotional rate of 3.25% for the first 182 days. Once the promotional term is complete, customers can enjoy a rate of 1.5%.
An account with Manulife Bank allows customers to bank for free with a minimum savings account balance of $1,000. If you are using the account with a balance lower than this amount, transactions and e-transfers cost $1.00. Using an ATM outside of the EXCHANGE Network costs $1.50.
Manulife Bank of Canada proudly serves citizens of Quebec.
8. Wealthsimple High-Interest Savings Account
You probably know Wealthsimple primarily as one of the best robo-advisors in Canada, but they do much more than managing investments. One of their financial products is the Wealthsimple High-Interest Savings Account that offers a handsome rate at 2%.
9. MAXA Financial High-Interest Savings Account
MAXA Financial currently offers one of the best high-interest savings account in Canada, at 2.45%. MAXA accounts come with no monthly fees and one free debit transaction per month. Interest in a MAXA HISA is calculated daily and paid to customers monthly.
E-transfers cost $1.50 and transactions are $1.00 each. Investments are provincially insured. This account is perfect for cost-conscious Canadians seeking to leave their savings untouched.
10. Motusbank High-Interest Savings Account
Motusbank is an online bank owned and operated by Meridian Credit Union. Currently, motusbank offers a competitive interest rate of 2.25% on HISA deposits.
As a bank that operates exclusively online, Motusbank offers customers the luxury of an easy-to-use online interface and customer service via telephone. The high-interest savings account is CDIC-insured with no monthly fees, unlimited transactions, and internal transfers.
Customers banking with motusbank can use ATMs that belong to the Exchange Network.
11. Scotiabank Momentum High-Interest Savings Accounts
Scotiabank’s currently offers several high-interest savings accounts. The Scotiabank Momentum Plus, Scotiabank Savings Accelerator Account, and the Money Master Savings Account. None require a monthly fee from account holders. The major Canadian bank offers a mobile banking app and 24/7 customer service.
Scotiabank’s Momentum Plus account offers tiered interest rates. Higher rates apply to savings that remain untouched for extended periods. It is the most basic HISA Scotiabank currently offers. Scotiabank’s Savings Accelerator Account offers the highest interest rate on a Scotiabank HISA. Finally, Scotiabank’s Money Master Savings Account requires no minimum balance and allows unlimited transfers. All accounts are eligible for CDIC insurance.
12. CIBC eAdvantage Savings Account
CIBC eAdvantage Savings Account offers interest on every dollar deposited at 1.05% on deposits over $5,000. Transactions, such as debit purchases, ATM withdrawals, bill payments, e-transfers, and branch transfers come with a fee of $5.00 each. Like many Canadian financial institutions, CDIC insurance is included.
13. Tangerine High-Interest Savings Account
Tangerine, Scotiabank’s direct-to-customer bank, offers a high-interest savings account with an interest rate of 1.25%. New clients earn 2.75% for the first six months. The account requires no minimum balances or monthly fees.
14. TD Bank High-Interest Savings Account
TD Bank offers a high-interest savings account with no monthly fee or minimum deposit requirement. Interest on a TD HISA is 0.50%. Transactions and internal transfers cost $5. E-transfers and external ATMs cost $1.50. All TD Bank accounts and deposits are covered CDIC insurance.
15. RBC High-Interest Savings Account
Royal Bank of Canada’s High-interest Savings Account offers CDIC insurance and an interest rate of 1.00% on deposits. Transactions cost $5.00, e-transfers cost $1.00, and external ATMs use costs $1.50. Internal transfers are free.
16. DUCA Earn More Savings Account
DUCA is an Ontario-based Credit Union that currently offers some of the highest interest savings accounts in Canada at 3.00%. This is a promotional offer.
However, DUCA’s promotional offer expires on January 31, 2020! On top of this fantastic rate, DUCA’s savings account comes with no locked-in terms, daily calculated interest, and pays interest monthly.
There’s also no minimum balance requirement. Although this is a promotional offer, exclusive to new deposits, there is no minimum deposit or monthly fee.
If you’re considering a DUCA Earn More Savings account, remember that after January 31st, 2020, this savings account will go back to its base rate of 1.65%. As an Ontario-based Credit Union, DUCA is insured by the Deposit Insurance Corporation of Ontario (DICO).
17. BMO Savings Account
BMO Savings Builder savings account offers an interest rate of 1.60%. The account requires a $200 minimum deposit each month to enjoy the minimum interest rate. It includes one free transfer per month and costs $5.00 per transaction.
18. Luminus Financial Investment Savings Account
Luminus Financial is a Toronto-based credit union currently offering one of the best high-interest savings accounts in Canada. The savings rate on the Investment Savings Account currently sits at 2.85% for the first 120 days, then dropping to 1.75%.
However, the Torontonian credit union may require an in-person visit to open an account.
Luminus FInancial Investment Savings Account is available to all Canadian citizens.
Compare Some of Canada’s Best High-Interest Savings Accounts for 2019
Follow the link below to find some of the best high-interest savings accounts in Canada, with interest rates and availability for different accounts, with sorted options for every Canadian province. You can find more information about the highest-interest savings account as well.
|Want to see how your savings account compares to the rest?||Compare Best Savings Accounts|