Aug 9, 2026
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Suze Orman has a simple challenge for anyone who feels good about their saving habits: stop congratulating yourself and check what your money is actually earning.
In a recent AOL blog post, Orman argued that one of the easiest ways to strengthen your finances is to make sure the money you've saved is earning a competitive interest rate. She pointed to a recent Vanguard survey showing that while more than 70% of women feel confident about their ability to save, nearly half are keeping their money in accounts earning less than 3%.
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The survey focused on American women, but the same message can apply just as easily north of the border. Many Canadians faithfully add money to savings every month without ever checking whether their account is paying a competitive rate. Over time, the difference between a basic savings account and a higher-interest option can add up to thousands of dollars a year.
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The current interest rate environment
The aforementioned Vanguard survey highlights an important disconnect. You may have a strong savings habit, but that doesn’t mean that your money is working as hard as it could be. In the current rate environment, Orman argues, 3% should be viewed as a minimum target rather than an exceptional return.
The interest-rate environment in Canada differs slightly from the U.S., of course. The Bank of Canada held its overnight rate at 2.25% on July 15, with the deposit rate sitting at 2.20%. While those rates influence everything from mortgages to savings accounts, they don't guarantee that all banks will offer the same returns. If you’re building an emergency fund, saving for a down payment or relying on interest income in retirement, every percentage point makes a difference over time.
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Why your savings account may be paying less than you think
According to the Financial Consumer Agency of Canada (FCAC), many financial institutions advertise attractive promotional rates that last only for a limited time before dropping to a much lower ongoing rate. In addition, some savings accounts require you to maintain a minimum balance to qualify for their highest advertised rate. Don’t assume that your savings account is paying a competitive return.
The differences can be significant. For example, RBC’s High Interest eSavings account is currently offering a three-month promotional rate of 4.60%. Meanwhile, EQ Bank's Personal Account pays a 1% base rate, increasing to 2.75% only for customers who receive a qualifying recurring direct deposit of at least $2,000 per month, according to its website.
What the interest gap could cost you
A Canadian with $10,000 in savings earning 1% would collect about $100 in interest over a year. Put that same $10,000 into an account paying 3%, and the annual interest jumps to $300, an extra $200 without saving another dollar. If you increase that balance to $25,000 or $50,000, the difference becomes even greater.
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This doesn't mean you should always chase the highest advertised rate. Some accounts come with additional requirements, such as maintaining a minimum balance, setting up recurring direct deposits or providing advance notice for withdrawals. Depending on your savings goal, immediate access may be more important than squeezing out every last penny in interest.
What to do now
If you haven't checked your savings account in a while, now is a good time. Interest rates, promotions and account features change regularly, and many Canadians continue earning a much lower rate than they realize.
Consider taking the following steps:
- Log into your account and confirm your current interest rate, not just the promotional rate you may have signed up for.
- Check whether your rate depends on maintaining a minimum balance, setting up recurring direct deposits or limiting withdrawals.
- Compare your interest rate with rates on other CDIC-insured savings accounts.
- If you're saving inside a TFSA or another registered account, verify that account's interest rate separately, as it may differ from the non-registered version.
Orman's challenge was about making sure the money you've already put aside is doing its job. It’s an important reminder to pay the same attention to your savings interest rate as you would your mortgage renewal, insurance premiums or cellphone bill. It could leave you with a little more money at the end of the day.
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Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.
