The Best High-Interest Savings Accounts in Canada

Updated Dec 3, 2024
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Marie-Ève Leclerc
Marie-Ève Leclerc

Marie-Ève Leclerc

Marie-Ève Leclerc
Marie-Ève, Web Director at Milesopedia, is an expert in budget travel and a slow travel enthusiast. Specializing in Aeroplan, Scene+, and Marriott Bonvoy programs, she spends nearly six months a year abroad, making travel her way of life. Constantly seeking the best waves to surf, excellent coffee, and strategies to extend her travels, she is often found in coworking spaces with fellow digital nomads or by the sea, watching the sunset.
All posts by Marie-Ève Leclerc
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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.

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, Simplii, 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
Simplii Financial High Interest Savings Account Up to 6.00%
Tangerine Savings Up to 6.00%
Scotiabank Momentum Savings PLUS Up to 5.40%
CIBC eAdvantage Savings Up to 5.25%
Wealthsimple Cash Up to 3.75%
BMO Savings Amplifier Up to 4.75%
RBC High Interest eSavings Up to 5.10%
KOHO Everything Plan Up to 5.00%
EQ Bank Personal (formerly Savings Plus) Up to 3.75%
Neo High-Interest Savings Up to 3.00%
Laurentian Bank High-Interest Savings Up to 3.75%

High Interest Savings Account - Simplii Financial

The best interest rate in Canada right now is with Simplii Financial for a limited time.

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 6.0% interest on eligible deposits for 5 months. Limits apply. Offer ends January 31st, 2025.

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.

High Interest Savings Account - Scotiabank

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 6.0% interest on eligible deposits for 5 months. Limits apply. Offer ends January 31st, 2025.

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.

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:

  • 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 1.35%

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

  • $400 for opening a Performance or Premium account with a deposit before March 3, 2025.
  • $150 for opening a Savings Amplifier Account with a deposit of $10,000 or more before March 3, 2025, and maintaining this balance for 90 days.
  • $50 to invite a family member to open an account before March 3, 2025.

Also enjoy a promotional interest rate of 4.75% 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 2.75% and 3.75% annually. All customers receive a minimum of 2.75% 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 3.75%) 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 ;
  • 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 3% 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 are as follows:
  • No monthly or transaction fees;
  • No minimum balance required ;
  • Interac transfers and bill payments available ;
  • 3% 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 3.85% interest on your savings:

  • Earn 2.85% interest on any amount under $100,000
  • Earn 3.85% interest on any amount between $100,000 and $5,000,000
  • Earn 1.00% interest on any amount over $5,000,000

Plus, there’s no minimum balance – you earn interest on every dollar. The High Interest Savings Account (HISA) is covered by 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 offering a generous interest rate of 3.75%* to all customers on everyday banking services:

  • 2.00% interest on chequing account;
  • Plus 1.75% bonus interest for 12 months when you set up direct deposit from your paycheck.

This account also offers several free features, such as:

  • Interac transfers;
  • Daily 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.

Come to discuss that topic in our Facebook Group!
Alexandrine Bertrand

Alexandrine Bertrand

Alexandrine Bertrand
A passionate solo traveler, Alexandrine is an expert on loyalty programs such as Aeroplan, Avios, AIR MILES, Flying Blue and Marriott Bonvoy. With a budget-conscious approach, she helps travelers maximize their points and miles for low-cost, off-the-beaten-path getaways. A food lover, she enjoys discovering the local flavors and culinary traditions that enrich her adventures.
All posts by Alexandrine Bertrand

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