When you need a place to hold your money for a short period of time, the best place to stash your cash is in a savings account. But sometimes that account doesn’t pay a very high rate of interest so you need to search for a better account.
If you’re looking for a high-interest savings account, here are the five of the best on RateHub:
The EQ Bank Savings Plus Account has no monthly fees and pays an interest rate of 2.3% on every dollar in your account. The online-only account also comes with an unlimited number of free withdrawals. What’s different about this account is you can make an unlimited number of bill payments and you get five free Interac e-Transfers every month. With these features, you may not need a chequing account ever again. Unfortunately, the EQ Bank Savings Plus Account isn’t available to residents of Quebec.
The Motive TFSA Savings Account allows you to save money tax-free. The online-only account has a rate of 1.8% and you can make unlimited withdrawals. You must have a minimum investment of at least $50 in your account. The one disadvantage with this account is it’s not available to residents of Quebec.
The Oaken Financial Savings Account has no monthly fees, no minimum balance, and an interest rate of 1.75%. Oaken offers online banking but it also has branches in Toronto, Vancouver, Calgary, and Halifax. Best of all, the account is available across the country.
The Luminus Financial Investment Savings Account also has an interest rate of 1.75%. But if you want to make in-branch withdrawals or transfers, it’ll cost you $0.70 each. To get this account, you need to live in Ontario and you have to purchase a $25 membership share to become a member of the credit union.
Last but not least is the Scotiabank Momentum Savings Account. There’s no monthly fee and you get unlimited transfers to other Scotiabank accounts. All other debit transactions are $5 each. The Momentum Savings Account has a tiered rate. If you have less than $5,000 in your account, the interest rate is just 0.05%. But if it’s $5,000 or more, the rate is 0.7%. And if you maintain a minimum balance of $5,000 or more and don’t make any withdrawals for 90 days, you get an additional 0.75% for a total of 1.45%. Until Aug. 31, you can get an additional 0.7% in bonus interest (for a total of 2.15%) on money you deposit from another financial institution into your account.
The bottom line
Before choosing a savings account, you should decide what features and services you need. It also doesn’t hurt to enter the amount you plan to save into a savings account calculator to estimate out how much interest you can earn.
Looking for a high-interest savings account?
Compare high-interest savings accounts