The best high-interest savings accounts in Canada

To the point If you're looking to maximize the return on your savings, a high-interest savings account is the ideal choice for you. Interest rates are currently around 5%, with attractive welcome offers for new customers.

What is a high-interest savings account?

The best high-interest savings accounts in Canada Interest rates in 2024 Scotiabank Tangerine Bank of Montreal (BMO) Wealthsimple KOHO Neo Laurentian Bank EQ Bank

The benefits of owning a high interest savings account How to open a savings account How to calculate interest on a savings account Bottom Line Frequently asked questions

New : Use our bank account comparator for a quick overview of the best savings accounts in Canada!

What is a high-interest savings account?

A high-interest savings account (HISA) is a bank account that offers a higher interest rate than the norm. This product is often chosen by those who are looking at medium-term savings and require a higher interest rate to achieve their financial goals.

Of course, the ideal is to let your savings grow for as long as possible in a savings account offering the best interest rate.

Canadian chartered banks, cooperatives and insurance companies offer high-interest savings accounts. You can open a HISA with a financial institution even if you don’t do your day-to-day banking there.

The vast majority of HISA are free, with no monthly fees. However, accounts from the Big Five banks often charge a fee per transaction, which is not the case with digital banks.

Interest earned in a high-interest savings account is taxable. You’ll receive tax slips at the end of the year, and you’ll need to report your earnings on your income tax return.

The best high-interest savings accounts in Canada

There are a multitude of high-interest savings accounts offered by almost every Canadian bank, including BMO, National Bank, CIBC, Desjardins, RBC, Scotia, TD and Laurentian Bank.

Meanwhile, digital banks such as Achieva Financial, Alterna, EQ Bank, KOHO, Motusbank, Neo Financial, Oaken Financial, Tangerine and Wealthsimple also offer HISA.

Milesopedia has taken a look at all the offers currently available on the market. Compare the offers in the table below and find all the details in the following sections.

Interest rates in 2024

Financial institution	Account name	Annual Interest Rate
Scotiabank	Momentum Savings PLUS	Up to 6.05%
Tangerine	Savings	Up to 6%
CIBC	eAdvantage Savings	Up to 5.75%
Wealthsimple	Cash	Up to 5.50%
BMO	Savings Amplifier	Up to 5.50%
RBC	High Interest eSavings	Up to 5.50%
KOHO	Savings	Up to 5%
EQ Bank	Personal (formerly Savings Plus)	Up to 4%
Neo	High-Interest Savings	Up to 4%
Laurentian Bank	High-Interest Savings	Up to 4%

High Interest Savings Account - Scotiabank

Scotiabank is currently offering an attractive deal on its MomentumPLUS savings account.

The special offer of the MomentumPLUS Savings Account will make your money grow with an interest rate of up to 6.05%. In addition to the base rate of 1.20%, you can get :

Premium period interest rate :
- 90 days: 0.75%
- 180 days: 0.85%
- 270 days: 1.10%
- 360 days: 1.45%
Interest rate boost according to banking package :
- Preferred Package: additional 0.05%
- Ultimate package: additional 0.10%
Promotional interest rate: 3.30% bonus for the first three months

The main features of this account :

No monthly fees
No minimum balance required
Regular interest rate of 1.20%.
Automatic Savings Plan
Unlimited transfers between accounts
Virtual check deposit

Terms and conditions apply. To learn more about the Scotiabank Savings Account or to apply, click here.

High-Interest Savings Account - Tangerine

The Tangerine Savings account is one of the best savings accounts in Canada. First of all, there are no monthly fees and no minimum balance requirements. What’s more, you can open accounts in both Canadian and U.S. dollars.

Until October 31, 2024, you can earn an interest rate of 6.00% for 5 months^† by opening a Tangerine savings account!

Here are the main features of the Tangerine savings account:

No service charges or other fees
No minimum balance required
Competitive interest rates
Interest calculated daily and paid monthly
Manage your savings via the Tangerine mobile app

The promotional rate applies to new deposits, up to a maximum of $1,000,000.

Terms and conditions apply. To find out more about the Tangerine savings account or to apply for one, click here.

High Interest Savings Account - Bank of Montreal (BMO)

Combine the BMO Savings Amplifier Account with the BMO Performance Chequing Account or BMO Premium Chequing Account for a great welcome bonus.

Key features:

Savings account with no monthly fees
No minimum balance required
Free transfers to your other BMO accounts
Base interest rate of 1.80%.

With the BMO Performance Chequing Account, you can earn up to a $600 cash bonus:

$350 for opening a Performance or Premium account with a deposit before October 31, 2024.
$200 for opening a Savings Builder Account with a deposit of $10,000 or more before October 31, 2024, and maintaining this balance until January 31, 2025.
$50 to invite a family member to open an account before October 31, 2024.

Also enjoy a promotional interest rate of 5.50% with a BMO Savings Amplifier Account.

Other benefits :

Unlimited banking transactions
Up to $40 off annual fees on eligible BMO credit cards
Free money transfers to 50 countries

All for $17.95 a month, or free if you maintain a minimum balance of $4,000.

Terms and conditions apply. To learn more about the BMO Savings Amplifier account or to apply, click here.

High-Interest Savings Account - Wealthsimple

Wealthsimple’s chequing account also acts as a high-interest savings account.

The interest rate offered on the Wealthsimple Cash account varies between 4% and 5% annually. All customers receive a minimum of 4% interest, then qualify for higher rates depending on their assets under management in all their Wealthsimple accounts combined:

In addition, the interest rate is increased by 0.5% (up to a total rate of 5%) if you choose Wealthsimple Cash as your direct deposit account.

The main features of the account :

No monthly fees or transaction charges;
No minimum balance required ;
Send Interac transfers and pay bills ;
Base interest rate of 4% ;
1% cash back on all purchases.

Terms and conditions apply. To find out more about the Wealthsimple Cash account or to apply, click here.

High-Interest Savings Account - KOHO

KOHO is another digital bank offering a high-interest savings account. Rates vary between 3% and 5%, depending on the package chosen. With the free package, you earn 3% interest on your savings. With paid packages (from $4 to $19 per month), rates are 5%.

The main features of the KOHO savings account are :

No monthly fee;
No fees for Interac transactions and transfers;
Free unlimited ATM withdrawals ;
Interest rates from 3% to 5%;
1% cash back on groceries and transportation.

Terms and conditions apply. To find out more about the KOHO savings account or to apply, click here.

High-Interest Savings Account - Neo

Neo is a digital alternative to the big Canadian banks. It offers no-fee credit cards and a high-interest savings account.

The savings account offers an interest rate of 4% on the entire balance, with no minimum deposit and no monthly fees.

To open an account, you must be at least 13 years old (14 in Quebec).

The main features of the account :

No monthly fees or transaction charges
No minimum balance required
Interac transfers and bill payments available
4% interest rate
1% cash back on all purchases

Terms and conditions apply. To find out more about the Neo Savings Account or to apply, click here.

High-Interest Savings Account - Laurentian Bank

Laurentian Bank is currently offering a great deal on its High Interest Savings Account (HISA).

With the Laurentian Bank High-Interest Savings Account (HISA), you earn higher interest on your balance while having your money at your disposal.

Right now, through this welcome offer, you can earn up to 4% interest on your savings:

Earn 3% on all savings under $100,000
Earn 4% on all savings between $100,000 and $5,000,000
Earn 1% on all savings over $5,000,000.01

Plus, there’s no minimum balance – you earn interest on every dollar. And the High Interest Savings Account (HISA) benefits from CDIC deposit insurance.

Terms and conditions apply. To learn more about the Laurentian Bank High Interest Savings Account or to apply, click here.

High-Interest Savings Account - EQ Bank

The EQ Bank High-Interest Savings account works differently from traditional savings accounts. The Personal Account (formerly the Savings Plus account) operates like a chequing account, but earns interest like a savings account.

The EQ Bank Personal Account (formerly known as the Savings Plus Account) is a no-fee account that offers a generous 4.00%* interest rate to all customers on everyday banking services:

2.50% interest on everyday banking services
Plus 1.50% bonus interest* when you direct deposit your pay

This account also offers several free features, such as:

Interac e-Transfers®
Everyday banking operations
Bill payments
Deposits and withdrawals

Finally, there is no minimum balance required for this type of account.

Terms and conditions apply. To find out more about the EQ Bank Current Account or to subscribe, click here.

The benefits of owning a high interest savings account

The high-interest savings account offers a higher return on your balance, as the name suggests. However, additional benefits often come from the bank’s promotional offers, such as high interest rates for a limited period or under certain conditions, such as a minimum balance requirement.

That’s why it’s essential to select an account based on your usual savings and banking habits, rather than simply opting for the account offering the highest interest rate.

For people with flawless financial management and an excellent credit score, it’s possible to take advantage of high interest rates and credit card cash advances to generate passive income. Learn more in this guide:

How to open a savings account

Once you’ve chosen the high-interest savings account that’s right for you, be sure to check the minimum income and deposit requirements carefully.

The account can usually be opened in a few minutes via online banking or a mobile application, depending on the bank chosen.

To open a HISA, you’ll need a Social Insurance Number (SIN), as tax slips are issued every year.

Then you can transfer funds easily from your online account or the mobile application.

If necessary, you can also make an appointment with a bank advisor to open the account in person.

How to calculate interest on a savings account

Financial institutions calculate interest rates differently according to their own criteria. It is therefore important to look at this detail. Some will pay interest into the savings account, considering :

Daily balance
New deposits to the account from a specific date
Part of the balance, above a certain amount or below a maximum amount

Finally, interest can be compounded. You’ll earn more interest with an interest rate compounded daily than monthly.

For example, by combining the BMO Performance Chequing Account with the Savings Booster Account, you can earn up to $600 in welcome bonuses. What’s more, you’ll enjoy a promotional interest rate of 5. 50% on balances deposited in a Savings Builder Account for up to 120 days after the account opening date. Interest is calculated on the daily closing balance, up to a maximum balance of $1,000,000, and paid on the last business day of the month.

Bottom Line

In short, a high-interest savings account lets you save for short- and medium-term projects. What’s more, a high-interest savings account is an ideal type of account for holding your emergency fund, also known as a contingency fund. With the high rate since 2023, you can get interest rates of around 5% with most financial institutions in Canada.

To help you in your search for a bank account and savings account that meet your needs and savings goals, you can use our bank account comparator.

Finally, discover our strategies for managing personal finances in Canada.

High Interest Savings Account - Frequently asked questions

How can I compare savings accounts with Milesopedia?

To compare savings accounts on Milesopedia, you can use the bank account comparator, read the summary of the best offers or visit thePersonal Finance section of the site.

What's the difference between a savings account and a high-interest savings account?

As the name suggests, a high-interest savings account is a type of savings account that offers a higher interest rate than a standard savings account. Not all financial institutions offer their customers a high-interest savings account. You can open a high-interest savings account with a chartered bank or credit union even if you have a chequing account with another financial institution. Finally, note that there are many high-interest savings accounts with no monthly fees or transaction charges, such as the Tangerine savings account.

Which banks offer high-interest savings accounts in Canada?

Most Canadian chartered banks offer high-interest savings accounts. Other types of financial institutions also do this, such as credit unions, insurance companies and trusts.

Which bank offers the best interest rate?

Some Canadian banks focus on high non-promotional interest rates, while others regularly offer promotional interest rates. For example, EQ Bank currently offers an interest rate of 4% on everyday banking services. Tangerine Bank is currently offering a promotional interest rate of 6.00% on its savings account for the first 5 months.

Is there a risk of losing my money deposited in a savings account?

No. Eligible deposits, such as chequing and savings accounts, are covered by CDIC up to a maximum of $100,000 per category of deposit insurance: individual, joint, TFSA, FHSA, RRSP, RESP, etc. To find out more, visit the SADC website.

High-interest savings account or TFSA: which one to choose?

Although a Tax-Free Savings Account (TFSA) includes the word “savings account”, it is generally more advantageous for long-term investing. In particular, in company shares or exchange-traded funds. That said, if you have unused contribution room in your TFSA, you can use this type of account for savings, such as an emergency fund. In this way, interest income received in the savings account is not taxed. To learn more, read the following guide: The Tax-Free Savings Account (TFSA).

Which savings account pays the highest interest?

As a rule, high-interest savings accounts earn more than standard savings accounts. Also, some banks offer promotional interest rate offers, such as Tangerine Bank with an interest rate offer of 6.00% for 5 months on its savings account and Scotiabank with an interest rate offer of 6.05% on its Momentum Plus savings account for 3 months.