Most Canadians keep their savings in the wrong account — here’s what $10,000 can earn in a year in a standard account versus a high-interest one

That means if you have $10,000 sitting in a typical big-bank savings account, you could be earning as little as $1 to $20 in interest over an entire year.

The gap between that and what a high-interest savings account (HISA) can offer isn’t only a technicality — it’s real money your savings could be earning in the background, with no extra effort from you.

The real cost of keeping your cash in the wrong account

Canada’s Consumer Price Index (CPI) rose 1.8% year-over-year in February 2026, according to Statistics Canada (2). That means money sitting in a standard savings account earning less than 1% isn’t just standing still — it’s actively losing purchasing power. Your $10,000 buys a little less each year.

By comparison, some of the best HISAs in Canada currently offer everyday interest rates of 2.00% or higher, while promotional rates can reach as high as 4.75% for a limited time (3). On a $10,000 balance, the difference is striking:

• At 0.36% (an average Big Bank rate): up to approximately $38 a year
• At 0.93% (the Canadian average savings rate): approximately $95 a year
• At 2.75% (EQ Bank Personal Account): approximately $278 a year

That’s a gap of more than $240 annually. Over time, that difference compounds into thousands of dollars — simply based on where your money sits.

The structural reasons for this gap are similar to those at play in any competitive market. Canada’s Big Six Banks carry significant overhead costs: branch networks, ATM infrastructure, staffing. These costs mean the banks don’t need to compete aggressively for deposits, and that translates into lower rates for customers.

Online-only banks and fintech companies, on the other hand, operate without branches. Their lower overhead gives them the flexibility to offer meaningfully higher interest rates to attract customers.

A strong savings option worth mentioning

If you’ve been looking for a better place to keep your savings, EQ Bank’s Personal Account is one of the more popular options right now.

EQ Bank, the digital banking arm of Equitable Bank — Canada’s seventh-largest bank — offers an everyday interest rate of 2.75% with no monthly fees and no minimum balance requirements (4). Deposits are eligible for coverage under the Canada Deposit Insurance Corporation (CDIC), providing protection of up to $100,000 for each insured category, per depositor — the same federal protection offered at any Big Six bank.

The account can be opened entirely online in about 10 minutes and funded immediately via Interac e-Transfer.

It’s worth noting that interest earned in a standard HISA counts as taxable income in Canada and must be reported on a T5 slip. However, if your HISA is held inside a Tax-Free Savings Account (TFSA), that interest is completely tax-free (5). Most financial planners suggest maximizing your TFSA contribution room first, then holding any remaining savings in a non-registered HISA.

The Bank of Canada held its overnight rate at 2.25% at its March 18, 2026 meeting (6). That means HISA and Guaranteed Investment Certificate (GIC) rates are likely to remain relatively stable in the near term — making this a good time to compare accounts and lock in a competitive rate.

How to make the switch

If you have emergency savings or excess cash sitting in a standard savings account, moving it to a higher-interest option can take as little as a few minutes.

Start by comparing HISAs from online banks and credit unions against your existing institution. When assessing accounts, look beyond the advertised rate. Consider:

• Whether the rate is promotional or ongoing — promotional rates revert to a lower base rate after a set period
• Monthly fees or minimum balance requirements
• Whether the account is CDIC-insured or covered by a provincial credit union regulator
• Transaction limits or notice periods — some accounts, such as EQ Bank’s Notice Savings Account, offer higher rates in exchange for advance notice before withdrawals

Whether you choose to hold your HISA inside a TFSA or a non-registered account, the key step is simply moving the money. On a $10,000 balance, the difference between a standard bank account and a competitive HISA can easily exceed $240 a year — without any additional risk or complications.

What Canadians can do right now

If your savings are sitting in a standard bank account, here are a few steps to get more from your money: