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Parking your money in a regular savings account isn’t a bad idea, but the interest rate on a traditional savings account could be as low as 0.01% a year, which is practically nothing.
Luckily, there’s a middle ground. The best high-interest savings accounts, or HISAs in Canada, (high-yield in the US), give you a place to store cash that earns interest and allows you to access it on demand. They offer some of the best interest rates in Canada in a low risk package, and without the need to tie up your funds like with a GIC.
Canadians have a lot of high-interest savings account options to choose from. Most financial institutions offer them, but that doesn’t mean all HISAs are equal — these are our top picks.
EQ Bank has remained at the top of our list for a while with its high earn rates.
The only ones to supplant EQ Bank is none other than EQ Bank.
It's simple. You choose a rate, either 2.85%** or 3.00%**, and the rate will determine how much notice you need to give for any withdrawals. Your interest is earned daily, paid monthly and you can keep making deposits and watching your money grow.
When you're ready for say, your dream vacation, new car or that kitchen renovation, schedule your withdrawal request whenever you want (free and unlimited). And yes, you continue to earn interest through the notice period.
4.5
This online-only bank falls under Equitable Bank. With no physical locations, it doesn’t have to worry about the same overhead costs as brick-and-mortar financial institutions so it’s able to pass those savings on to customers.
EQ Bank's Personal Account (or Joint Account) currently has an interest rate of 1.25%*, and a 3.50%* interest rate when you set up direct deposits.
This is one of the best non-promotional interest rates in Canada right now. Not only do you get a good rate, the EQ Personal Account also comes with many more advantages, and very few conditions.
Beyond making you money, you will pay no monthly fees and there’s no minimum balance to maintain. Account holders also have unlimited transactions and free electronic fund transfers, mobile cheque deposits and bill payments. Unlimited free Interac transfers are also included.
There is, however, a maximum balance that your account can hold, which is now $200,000. Interest is calculated daily and paid monthly into your account.
This combination of a high interest rate and limited conditions makes EQ Bank one of the top recommended best high-interest savings accounts in Canada.
KOHO has become incredibly popular since its launch, thanks to higher interest rates and low fees/limited conditions. .
They aren’t just another online bank, but a Canadian technology company that offers a lot of added perks.
KOHO is a free downloadable app that allows Canadians to manage their money easily, and earn interest. It's like a chequing account with the perks of a credit card.
So, how does it work?
The app connects with a pre-paid Mastercard, so you can budget, spend, and save at the same time. Once your account is set up, you can load it with an e-transfer. You can also add your paycheque to your KOHO Card. If you want to load it with cash, you can take it to a Canada Post office.
From there you can use the card to pay for pretty much anything from your lunch, to your bills.
KOHO isn’t a traditional HISA but the interest rate, no fees, and additional benefits make it worthy of a spot on this list.
As a long time investor with Wealthsimple's robo-advisor service, I moved my emergency fund money from the Tangerine HISA and its lower earn rate.
Savings accounts with high interest are great, but I need it to be liquid immediately for emergencies (appliance failure, car dies, basement floods, etc.)
I chose Wealthsimple because I'm an investor and so get 4.5% and I can withdraw anytime or send interac e-transfers to whoever I need to receive that money.
I also love the app and its ease of use. Finally, I do my taxes with Wealthsimple so it makes any interest I earn here super easy to account for.
I remember when Tangerine was the bees knees of high interest rates. EQ Bank came along and swept them aside.
Tangerine is Scotiabank's online only bank and could certainly offer you a better deal, but they know Canadians have a really hard time switching products.
Case in point: A solid welcome bonus for signing up where you earn 4.50% interest but then it plummets to 0.30% after 5 months.
You can earn up to 3.10% with their 270 day GIC if you want to lock it in, but a HISA is meant for emergencies, not an I'll-pay-you-in-9-months thing.
It's only open to new customers, too. So if you're an existing customer looking for a hot promotional high interest savings rate, consider Simplii Financial below.
While the normal interest rate for Simplii Financial’s HISA isn’t the most impressive at 0.30% for balances under $50,000, this financial institution is known for having some great promotional rates. While promotional rates aren’t good for long term savings, if you are only saving up money for a couple of months before you are planning on making a large purchase, then the promotional rate can be worth taking advantage of.
Currently, Simplii Financial is running a promotional rate of 3.70% on eligible deposits up to $500K. Limits Apply. Offer ends June 30th, 2025. That’s more than double EQ Bank’s rate which can add up pretty quickly if you are looking for a place to park your money for a few months.
Like many of the other options on this list, Simplii Financial's HISA has no minimum balance requirement and no monthly or transaction fees. So, keep an eye out for those promotional rates and take advantage if the timing is right.
Earn 3.7% interest rate on eligible deposits up to $500K on your first Simplii Financial High Interest Savings Account for the first 7 months. No matter how much is in your account, you won’t pay monthly fees.
Limits apply. Offer ends June 30th, 2025.
With some high-interest savings accounts, you’ll be offered different interest rates depending on how much money you have deposited, and how long you keep it there.
These are called tiered-interest accounts.
Scotiabank’s MomentumPLUS Savings Account works because the longer you leave your money untouched, the more it will earn.
While it's a high interest rate savings account for a big 6 bank, it is tied in a 3 month period (5.00%). It's the best big bank HISA if you need a brick and mortar branch, chequing accounts, investment options and more all in one place.
Again, since it’s a big bank, the Scotiabank MomentumPLUS doesn’t necessarily offer the best rates when it comes to HISAs. But their tiered interest strategy is certainly appealing to some clients looking to save money and earn some interest.
*Includes Regular Interest Rate of 0.55% plus a Package Interest Rate Boost of 0.10% for Ultimate Package holders, 90-Day Premium Period Interest Rate of 0.25% and a Welcome Bonus Interest Rate of 4.10% for 3 months.
*See Account Provider's website for complete account details, terms and current offers. Reasonable efforts are made to maintain accuracy of information.
Founded in 2019, Neo Financial is catching attention with its cash-back credit card, the Neo Card, and the Neo High-Interest Savings Account.
The Neo High-Interest Savings Account offers a 2.5% interest rate, as well as unlimited free transactions, and no minimum deposit requirements. You can also have up to 10 accounts for all your savings goals in the app.
The offerings of this account are pretty basic compared to some of the competitors, but Neo Financial could be a good choice if you have simpler needs. If you are just looking for a basic account with a good interest rate, it’s worth considering.
Partner this account with their Neo Money-Card and you can earn up to 6% at restaurants and bars, 4% on apps like Netflix, Apply and UberEats, 3% on gas and groceries and 0.5% on everything else.
It's a fantastic credit card for youth and a great place to manage their savings goals.
Despite not making our best-of list, it’s worth taking a look at what the other Big Five banks offer for HISAs.
TD ePremium Savings Account offers 0.85% interest on balances over $10,000. There is no monthly fee and you have unlimited online transfers.
Given the large minimum balance, as well as the associated fees for some transactions, it’s best to keep this account strictly as a savings account to avoid any additional costs.
CIBC offers a 0.25% regular interest rate with their eAdvantage Savings Account. When you contribute at least $200 a month (to a maximum of $200,000) you receive an additional 0.25%.
There’s no fee for the account, but each transaction comes at a cost of $5.
The BMO savings builder account is a free account that provides a base interest rate of 0.15%, with a bonus interest rate up to 0.95%. To qualify for the bonus interest rate, you must increase your monthly balance by at least $200 each month (up to $250,000).
You receive one free transfer out of the account per month, but after that each transaction will cost you $5.
RBC offers a HISA with a current standard interest rate of 0.75%. There is no monthly fee, and you can transfer money from the HISA to another RBC account in your name for free.
Included in the account is one free RBC ATM withdrawal per month. Additional transactions cost $5 per month.
A high-interest savings account (HISA) is a type of savings account that offers a higher interest rate than regular savings accounts. These accounts are designed to help your money grow faster over time. Banks and credit unions typically offer HISAs as a way to attract customers who want to save money while earning a better return on their deposits. The interest you earn is usually calculated daily and paid out monthly.
For example, if you deposit $5,000 into a high-interest savings account with an interest rate of 5%, you would earn $250 in interest over a year.
In contrast, a regular savings account with an interest rate of 0.30% (like the Tangerine HISA) would only earn you $15 over the same period.
This significant difference shows how a higher interest rate can help your savings grow much faster. HISAs often come with fewer restrictions on withdrawals than other high-yield accounts, making them a flexible option for saving. These accounts are a smart choice for anyone looking to build their savings without taking on the risks associated with investments like stocks or bonds.
A high-interest savings account (HISA) works by offering a higher interest rate on your deposited funds compared to regular savings accounts. When you deposit money into a HISA, the bank or credit union uses that money to lend to other customers or invest.
In return, they pay you interest as a way to reward you for keeping your money with them. This interest is usually calculated daily based on your account balance and is paid out monthly.
The math
For example, if you have $5,000 in a HISA with an annual interest rate of 5%, the daily interest rate would be about 0.0137%.
Each day, the bank calculates your interest by multiplying your balance by this daily rate. At the end of each month, the accumulated interest is added to your account balance. Over a year, this process can significantly grow your savings compared to a regular savings account. HISAs often have minimal fees and allow easy access to your funds, making them a convenient and effective way to save money.
What's the catch? Sometimes with a high-interest account, you need to make a minimum deposit, maintain a minimum balance or pay regular fees — though that’s not always the case.
MORE: Best banks in Canada
Yes, the interest earned on a high-interest savings account (HISA) is subject to taxation. In Canada, any interest income you earn from a HISA is considered taxable income. This means you must report the interest you receive on your annual tax return. The bank or credit union where you hold the account will typically issue a T5 slip at the end of the year, summarizing the total interest earned.
For example, if you earn $250 in interest from your HISA, you need to include this amount in your total income for the year. The interest is taxed at your marginal tax rate, which depends on your overall income and tax bracket. It’s important to keep track of your interest earnings and any T5 slips you receive to ensure you accurately report your income and avoid any penalties from the Canada Revenue Agency (CRA). High-interest savings accounts are a great way to grow your savings, but it's essential to be aware of the tax implications.
High-interest savings accounts (HISAs) typically pay interest on a monthly basis. The interest is calculated daily based on your account balance, and then it is added to your account at the end of each month. This regular compounding helps your savings grow more quickly over time.
For example, if you have $5,000 in a HISA with an annual interest rate of 5%, the bank calculates the daily interest rate, which would be about 0.0137%. Each day, they multiply your account balance by this daily rate to determine the interest earned for that day. At the end of the month, all the daily interest amounts are summed up and added to your account balance. This process repeats every month, allowing your interest to compound, meaning you earn interest on your interest, further increasing your savings.
A high-interest Tax-Free Savings Account (TFSA) is a type of savings account in Canada that offers a high interest rate on deposits, allowing your money to grow faster while also providing tax advantages. Unlike regular high-interest savings accounts, the interest earned in a TFSA is not subject to income tax, making it an attractive option for saving money over the long term.
For example, if you deposit $5,000 into a high-interest TFSA with a 5% interest rate, you would earn $250 in interest over a year. In a regular savings account, this interest would be taxable, but in a TFSA, you keep the entire $250 tax-free. This makes TFSAs particularly beneficial for saving towards long-term goals like buying a house, retirement, or building an emergency fund. Additionally, any withdrawals from a TFSA are also tax-free, and the amount you withdraw can be re-contributed in the following year, providing flexibility and tax-free growth.
When you start looking for a high-interest savings account, the first number you’ll see will be APY, or annual percentage yield.
APY is the yearly rate of return on the money in your account, and it includes compound interest, which is the interest earned on your interest.
The more often your investment compounds and builds interest on the interest you’ve already earned, the faster your savings grow.
So how much higher is the interest on a high-interest, or high-yield, savings account? As of January 2025, the best rates exceeded 3% — more than 200 times higher than a traditional savings account.
In contrast, traditional savings accounts from major banks often offer interest rates around 0.01%.
Compare savings interest rates | Traditional savings account | High-interest savings account |
---|---|---|
Balance | $10,000 | $10,000 |
Interest rate | 0.01% | 3% |
Annual interest earned | $1 | $30 |
By choosing a high-interest savings account, you could earn significantly more in interest annually compared to a traditional savings account.
Regular contributions, combined with higher interest rates, can substantially increase your savings over time.
It's important to note that some high-interest savings accounts offer promotional rates for a limited time before reverting to lower regular rates. For instance, the Tangerine Savings Account provides a promotional rate of 4.50% for the first five months, with a regular rate of 0.30% thereafter.
But EQ Bank, Wealthsimple and Neo offer a consistently high rate throughout the year.
So, always compare different accounts and consider both promotional and regular interest rates to maximize your savings.
Like traditional savings accounts, high-interest accounts are federally insured up to $100,000 if you're dealing with a bank insured by the Canada Deposit Insurance Corporation (CDIC), or a credit union insured by provincial deposit insurance providers.
Old-school brick and mortar financial institutions aren’t your only secure option though; a growing number of high-yield savings accounts are being offered by online banks, and the CDIC insures many of them as well.
And since the Bank of Canada has slashed interest rates in the wake of the coronavirus pandemic, many of these small online banks are offering better high-interest savings options than their big-bank competitors at the moment.
The great thing about high-interest savings accounts is they’re versatile. Whether you’re planning for your wedding or preparing for retirement, you can rest easy knowing that the money you’re putting towards your goal is growing.
Some popular reasons for opening a HISA include:
Whatever your goals are for your savings, opening a high-interest account is a smart move.
But before you jump at the first account your bank offers you, it’s worth it to shop around a bit and see what’s out there. After all, you’re not obligated to stick with your current financial institution if you can find a better rate somewhere else.
MORE: Types of bank accounts
Before you open an account, it's a good idea to compare offers from a few financial institutions. Here are a few key things you should look for when comparing your options for a high-interest account.
Obviously you’ll be looking for accounts with high interest rates, but make sure to clarify whether the rate being offered is standard or if it’s an introductory rate that will eventually go down. The highest rate isn’t always your best bet if it’s going to drop after just a few months.
You should also look into whether there are minimum or maximum thresholds you need to meet in order to maintain your rate, and confirm that they’re doable for you.
Some financial institutions may charge introductory fees for opening a high-interest account, and monthly maintenance fees for keeping it open. It’s important that you understand what these fees are and whether there are ways to avoid them.
How easy it will be to access the money in your high-yield account is another thing to consider. Some banks will allow you to make withdrawals instantly using an ATM card, while others may require a waiting period of several days before your transaction is processed.
Lastly, you should find out how frequently the interest you earn from your account will be compounded. An account in which interest is compounded daily will grow your savings faster than an account where interest is compounded yearly. The more often interest is added to your balance, the more growth you’ll see in your savings.
While they offer better interest rates than a regular savings account, HISAs also tend to come with more restrictions or conditions.
Some common conditions to look for when choosing a high-interest savings account include account minimums. For example, interest might only be calculated if your account has a minimum balance, such as $5,000.
There are also withdrawal conditions, where there are a limited number of free withdrawals per month. Any extra ones will lead to a charge. There are also transaction fees, which may be waived depending on your balance. Again, any conditions and fees associated with your HISA will vary from institution to institution.
*Interest is calculated daily on the total closing balance and paid monthly. For the EQ Bank Card, interest is paid into the linked Personal Account. Rates are per annum and subject to change without notice. For the Personal Account, Joint Account and EQ Bank Card, the current base interest rate is 1.25% (the “Base Rate”). Customers who add and maintain qualifying recurring direct deposits of at least $2000/month to a Personal Account or Joint Account are eligible to earn a bonus interest rate of 3.50% (the Base Rate plus an additional 2.25%) for the eligible accounts (the Personal Account, Joint Account, and the EQ Bank Card balance). Conditions apply. Please review the EQ Bank Bonus Interest Offer Terms and Conditions for details.
**Based on research conducted by Equitable Bank comparing base interest rates of savings accounts offered by Canada’s ‘Big 5’ banks, Tangerine Bank, and Simplii Financial and the EQ Bank Notice Savings Account at 3.00% interest per annum. Research is based on savings account interest rates taken from public websites as at March 18, 2025. Promotions and rate premiums are excluded. Interest calculated daily on the total closing balance and paid monthly. Most savings accounts in Canada allow the account holder to access funds in the account at any time, whereas the EQ Bank Notice Savings Account at 3.00% interest per annum requires 30 days advance notice.
Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.
Shane is a reporter for Money.ca. He holds a bachelor’s degree in English Language & Literature from Western University and is a graduate of the Algonquin College Scriptwriting program.
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