What is a high interest savings account?
A high interest savings account is a type of savings account that pays higher interest than standard savings accounts. Unlike a chequing account which are meant for everyday transactions, high interest savings accounts are designed to save money in for a longer period of time. They often have higher transaction fees than chequing accounts, but there are plenty of high interest savings accounts available that don’t charge monthly fees or transaction fees. 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.
Other types of savings accounts
Tax-free savings accounts usually offer lower interest rates than high interest savings accounts, but there is no tax on the interest earned.
Many financial institutions offer special savings accounts just for children to teach them how to save money and how to bank.
Some banks offer special savings accounts for Canadians 60 and over that offer lower transaction fees or waive minimum balance requirements.
How to choose the right high interest savings account
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.
Best Savings Account Providers