New : Use our bank account comparator for a quick overview of the best savings accounts in Canada!
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.
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, Simplii, Tangerine and Wealthsimple also offer HISA.
Milesopedia has taken a look at all the best savings accounts currently available on the market. Compare the offers in the table below and find all the details in the following sections.
Scotiabank is currently offering an attractive deal on its MomentumPLUS savings account.
Whatever your savings goal, Simplii makes it easy with the Simplii Financial High Interest Savings Account. Save easily without tying up your money for an extended period. Enjoy an account with no monthly fees, no minimum balance and set up automatic deposits.
For a limited time, earn 4.60% interest† on eligible deposits for 5 months. Limits apply. Offer ends February 28, 2025.
Terms and conditions apply. To learn more about the Scotiabank Savings Account or to apply, click here.
One of the best interest rate in Canada right now is with Simplii Financial for a limited time.
Terms and conditions apply. To learn more about the Simplii High Interest Savings Account or to apply, click here.
Simplii Financial’s products are not available in Quebec.
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 :
Terms and conditions apply. To find out more about the KOHO savings account or to apply, click here.
Combine the BMO Savings Amplifier Account with the BMO Performance Chequing Account or BMO Premium Chequing Account for a great welcome bonus.
Key features:
With the BMO Performance Chequing Account, you can earn up to $700 in welcome bonus:
Also enjoy a promotional interest rate of 4.75% with a BMO Savings Amplifier Account.
Other benefits :
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.
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.
Opening a Tangerine savings account until March 31, 2025, will earn you an interest rate of 6.00% for five months†!
Here are the main features of the Tangerine savings account:
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.
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 interest rate of up to 3.50%* to all customers on everyday banking services:
This account also offers several free features, such as:
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.
Laurentian Bank is currently offering a great deal on its High Interest Savings Account (HISA).
Terms and conditions apply. To learn more about the Laurentian Bank High Interest Savings Account or to apply, click here.
Wealthsimple’s chequing account also acts as a high-interest savings account.
The interest rate offered on the Wealthsimple Cash account varies between 2.25% and 3.25% annually. All customers receive a minimum of 2.25% 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 3.25%) if you choose Wealthsimple Cash as your direct deposit account.
The main features of the account :
Terms and conditions apply. To find out more about the Wealthsimple Cash account or to apply, click here.
Terms and conditions apply. To find out more about the Neo Savings Account or to apply, click here.
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:
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.
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 :
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.
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.
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.
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.
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.
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.
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.
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).
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.
Savings are here:
