The Best High-Interest Savings Accounts in Canada - Money We Have (2024)

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With Canada having some of its lowest interest rates in the last decade the thought of a high-interest savings accounts in Canada may seem absurd. To complicate things, there are so many different banks in Canada and they all have various accounts that come with different features. If you’re not aware of what to look for or why a high-interest savings account matters to you, you may end up just signing up for the first account offered to you.

The key thing to understand is that the best high-interest savings accounts in Canada won’t make you rich. Heck, the rate you get may not even beat inflation, but the idea is that the money deposited will be safe and earn you some interest. Basically, this type of account is perfect for short-term savings like a home downpayment or as a place to park your emergency fund.

With so many different accounts available, you may not be sure where to look, but don’t worry, I’ve rounded up the ones with the best rates for you to compare.

What is a High-Interest Savings Account?

Are you still confused about what a high-interest savings account is? First off, most people refer to them strictly as a HISA so if you see that term online, people are talking about high-interest savings accounts. As the name implies, it’s a high-interest account. The reason most high-interest savings accounts in Canada only seem to pay between 2% – 5% is that the Bank of Canada’s (BoC) benchmark has slowly been increasing rates. If the BoC raises their rate, then so would most HISAs. Inversely, if the BoC lowered rates, there’s a good chance many banks would also lower rates.

Compared to traditional banks, HISAs pay a much higher rate, but you may not have access to cheques (who uses cheques anyways?). With HISAs, you typically don’t pay any fees, you get free etransfers and you’ll get unlimited transactions. Normal banks may charge you a monthly fee to use etransfers while the number of transactions you can make a month depends on the type of account.

Moving money between accounts can take up to two business days with a HISA or you can do an etransfer where your money is sent within 60-90 minutes. Generally speaking, a regular chequing account is great for everyday banking and day-to-day transactions, but HISAs are better if you don’t need a ton of services.

If you’re ready to open a HISA, check out my list of the best high-interest savings accounts in Canada.

EQ Bank

You can’t have a discussion about the best high-interest savings accounts in Canada without mentioning the EQ Bank Savings Plus Account. What makes EQ Bank so attractive is the fact that you get a high annual interest rate (paid monthly). That’s not a promotional rate, you’ll earn the same interest on any money in your account. In addition, you get free Interac e-transfers® every month. If you’re unfamiliar with EQ Bank, they’re a trademark of Equitable Bank who has been operating in Canada for four decades and are a CDIC member, so your money will be protected. One thing to note, EQ Bank is not available to residents of Quebec.

Most people know KOHO as a prepaid credit card, but the Earn Interest account pays you some interest. This applies to both your spending and savings account. Plus, you can earn instant cash back on your purchases. The only “catch” is that you must set up a direct deposit to your account to get access to the interest.

KOHO is one of the better FinTech companies in Canada. As a prepaid credit card, you can use your card/account to make purchases online where VISA is accepted. You can also send money via e-transfers and get insights into your spending. Best of all, you get $20 for free when sign up.

Simplii Financial

TheSimplii Financial High Interest Savings Accounthas been getting a lot of attention as of late as they’ve been offering some of the highest interest rates. Note that the free Interac e-transfers and use of CIBC ABMs only apply to the Simplii No Fee Chequing Account, which has a much lower interest rate.

Tangerine Bank

Tangerine used to be ING Bank, but when Scotiabank acquired the online bank, they changed their name to Tangerine. The good thing is the Tangerine Savings Account is still one of the best high-interest savings accounts in Canada. Tangerine often has special promos where new clients earn an increased interest rate for 5 months. The regular interest rate is considerably lower than other banks, but you do get access to Scotiabank’s network of automated bank machines if you need to withdraw cash.

Oaken Financial Oaken Savings Account

• 3.40% Interest rate
• No monthly fees
• CDIC insured

TheOaken Financial Oaken Savings Account is pretty basic, but it’s still one of the best high-interest savings accounts in Canada. More importantly, it’s higher than a basic savings account at any of the major banks in Canada. There are no monthly fees and no minimum balance required to have this account. You’ll also get unlimited transactions, but these are features that all of the mentioned HISAs have. One other thing worth noting is that Oaken also offers GICs which typically have very competitive rates.

LBC Digital High Interest Savings Account

• 3% interest
• No minimum balance required
• No monthly account fee

LBC Digital is one of the newest banks to join my list of the best high interest savings accounts in Canada. Although they’re new, they’re owned by Laurentian Bank, who’s been around for more than 170 years. What makes LBC Digital appealing is its interest which is one of the highest rates on this list. If you bank with Laurentian Bank, you really should open an LBC Digital account but note that they do not give you free Interac e-transfers.

Alterna Bank High Interest eSavings Account

• 2.50% Interest rate
• No monthly fees
• Free e-transfers

Alterna Bank is a credit union and has consistently been leading or near the top with their eSavings account. You get free unlimited monthly Interac e-transfers which is great but note that there is a $3,000 daily limit (this applies to all Interax e-transfers). Alterna Bank does have a few bricks and mortar locations in Ontario and one in Quebec, but the Alterna Bank High Interest eSavings Account is strictly for online users.

Motive Financial Savvy Savings Account

• 3% Interest rate
• No monthly fees
• Unlimited e-transfers

Motive Financial is the online banking division of Canadian Western Bank (CWB) and has a decent interest rate on deposits in their Motive Financial Savvy Savings Account. Their RRSP account is also still paying high interest. With Motive, there are no fees and unlimited e-transfers, so this is a great account to put your money for any short-term savings. If you want to learn more about Motive Financial and what other accounts they have, you can read my Motive Financial review.

Meridian High-Interest Savings Account

• 2.50% Regular interest rate
• No monthly fees

Meridian is a credit union based in Ontario and has a High Interest Savings Account. The high interest savings account will likely appeal to current Meridian customers, but as you’ve noticed, there are better high-interest savings accounts in Canada. Meridian is not a CDIC member, but your deposits are insured up to $250,000 by the Deposit Insurance Corporation of Ontario (DICO).