The best high interest savings accounts in Canada for 2021

A high interest or high yield savings account is fundamentally the same as your standard, run-of-the-mill savings account with one notable exception: they earn more interest, typically offering anywhere from five to twenty times higher rates. Unlike chequing accounts which are linked to a debit card and meant for regular daily or monthly transactions, high interest savings account are designed as a safe place to store your extra money and help it grow modestly for short or long-term financial goals. High interest savings accounts are particularly popular for storing an emergency fund or savings for a big-ticket purchase to be made in the near future. Many of the best high interest savings accounts are provided by online-only banks and credit unions, as these financial institutions don’t operate a large number of brick-and-mortar locations, and as a result, pass on the savings in the form of higher interest rates. 

You can open a high interest savings account with any bank or credit union, even if you do your everyday banking with another financial institution.

When comparing high interest savings accounts, there are a number of factors to consider. Look for accounts that offer an everyday high interest rate and low transaction fees. You can also consider extras, like whether the account offers online and mobile banking, free Interac® e-Transfers, and bill payments. Some high interest savings accounts also offer sign up incentives and promotional interest rates. Even though these offers look attractive, you may find that you’ll come out ahead by choosing an account with an everyday high interest rate.

Tax-free savings accounts

Tax-free savings accounts typically earn lower interest rates than high interest savings accounts, but there is no tax on the interest earned.

Youth savings accounts

Many financial institutions offer special savings accounts just for children to teach them how to save money and how to bank.

Senior savings accounts

Some banks offer special savings accounts for Canadians 60 and over that offer lower transaction fees or waive minimum balance requirements.