Finding the right place for your savings is crucial, and not all saving strategies are equally effective.
While investing your savings can potentially yield significant returns, it may not always be easy to access your funds quickly when needed. On the other hand, traditional savings accounts offer liquidity but often come with minimal interest rates, sometimes as low as 0.01% annually.
Fortunately, there exists a middle ground: High-Interest Savings Accounts (HISAs). These accounts offer substantially higher interest rates compared to traditional savings accounts, providing your deposited funds with the opportunity to grow.
Here’s everything you need to know about finding the best HISA to start earning money while you save.
EQ Personal Account
Regular Interest Rate: 2.50%
Interest Rate with Direct Deposit: 4%
Minimum Account Balance: None
This online-only bank, a subsidiary of Equitable Bank, operates without physical locations, allowing it to minimize overhead costs compared to traditional brick-and-mortar financial institutions. These savings are passed on to customers.
EQ Bank’s Personal Account currently offers an interest rate of 2.50%, which increases to 4% when you set up direct deposits.
This competitive interest rate is among the best non-promotional rates available in Canada. Besides offering attractive interest rates, the EQ Personal Account boasts numerous other benefits with minimal conditions.
Account holders enjoy no monthly fees and no minimum balance requirements. Additionally, they benefit from unlimited transactions, free electronic fund transfers, mobile cheque deposits, and bill payments. Unlimited free Interac transfers are also included.
However, there is a maximum balance limit of $200,000 for the account. Interest is calculated daily and deposited monthly into the account.
With its combination of a high-interest rate and few conditions, EQ Bank stands out as one of the top recommended high-interest savings accounts in Canada.
KOHO Easy
Regular interest rate: 3% interest, plus 1% cash back on select purchases. Earn up to 5% with KOHO’s paid plans.Promotional interest rate: Currently none
Minimum account balance: None
KOHO has surged in popularity since its launch, attributed to its higher interest rates, low fees, and minimal conditions. More than just an online bank, KOHO is a Canadian tech company offering a range of added perks.
Accessible through a free downloadable app, KOHO simplifies money management for Canadians while providing an avenue for earning interest. Acting like a chequing account with credit card perks, the app pairs with a pre-paid Visa card, enabling users to budget, spend, and save seamlessly. After setting up the account, users can load funds via e-transfer or direct deposit their paycheque onto the KOHO Card.
With the card, users can make purchases for various expenses, from daily lunches to utility bills. Notably, the KOHO Easy plan stands out for its additional benefits alongside interest earning. Upon setting up direct deposit, users start earning 0.5% interest on their balance. Moreover, using the KOHO account for grocery purchases or bill payments earns users a 1% cashback bonus.
While KOHO isn’t a traditional High-Interest Savings Account (HISA), its competitive interest rate, absence of fees, and supplementary advantages make it a noteworthy addition to this list.
Simplii Financial
Regular Interest Rates:
Promotional Interest Rate:
Minimum Account Balance: None
While Simplii Financial’s regular high-interest savings account (HISA) rate is modest at 0.40% for balances under $100,000, the institution often offers compelling promotional rates. Although promotional rates are not ideal for long-term savings, they can be advantageous if you’re saving for a short period before a significant purchase.
As of the time of writing, Simplii Financial is offering a promotional rate of 6%. This rate surpasses EQ Bank’s rate and can yield substantial returns over a few months if you’re seeking a temporary parking spot for your funds.
Similar to other options mentioned, Simplii Financial’s HISA imposes no minimum balance requirements or monthly fees, making it a convenient choice for savers. Keep an eye out for these promotional rates and seize the opportunity when the timing aligns with your financial goals.
Scotiabank MomentumPLUS Savings Account
The regular interest rates for Motive Financial’s high-interest savings account (HISA) range from 0.90% to 1.40%, with varying rates based on different time periods. Additionally, Motive Financial offers promotional rates, such as a 240% welcome bonus interest rate on eligible deposits for the initial five months.
With no minimum account balance requirement, Motive Financial’s HISA provides flexibility for savers. The promotional rates, coupled with the absence of monthly fees, make it an attractive option for those seeking competitive returns on their savings.
Scotiabank’s MomentumPLUS Savings Account stands out due to its tiered-interest structure, offering increasing interest rates based on the duration of untouched deposits. Starting with a regular interest rate of 1.40%, clients can earn a premium period interest rate ranging from 0.85% for the first 90 days, gradually increasing to 1.25% for deposits left untouched for 360 days. This makes it particularly suitable for medium-term financial goals such as saving for a down payment, vacation, or home renovation.
Although Scotiabank may not offer the highest interest rates compared to other high-interest savings accounts (HISAs), its tiered-interest approach appeals to clients seeking to maximize savings and earn competitive interest rates over time.
Neo Money
Neo Financial, established in 2019, has garnered attention with its Neo Card cash-back credit card and Neo High-Interest Savings Account.
The Neo High-Interest Savings Account offers a competitive 4% interest rate, along with unlimited free transactions and no minimum deposit requirements.
While the features of this account may seem basic compared to some competitors, Neo Financial could be an ideal choice for individuals with simpler banking needs. If you’re seeking a straightforward account with a competitive interest rate, Neo Financial is certainly worth considering.
Motive Savvy Savings
Motive Financial, a prominent online-only bank in Canada, boasts a competitive regular interest rate of 4.10% for its high-interest savings account, the Savvy Savings Account. Notably, this rate is not promotional but rather standard, making Motive Financial a top contender for the best HISA rates in Canada. Moreover, there is no minimum account balance requirement.
The Savvy Savings Account at Motive Financial does not incur monthly fees, and account holders enjoy unlimited deposits. Despite the appealing 4.10% interest rate, there are some restrictions to consider. Specifically, the account permits only two free monthly withdrawals, with any additional withdrawal incurring a $5 fee. However, given that this is a savings account and not a chequing account, the robust interest rate compensates for these limitations.
It’s important to note that the 4.10% interest rate applies to balances up to $5,000,000. Beyond this threshold, the rate decreases to 0.5%.
Motusbank Savings
Motusbank, an online bank affiliated with Meridian Credit Union, one of Canada’s largest credit unions, offers a range of financial products, including its high-interest savings account option, Motusbank Savings.
Featuring a regular interest rate of 2.5%, Motusbank Savings stands out as one of the higher-interest options available. Additionally, the account imposes zero fees, requires no minimum account balance, and permits unlimited debit purchases and withdrawals. However, it’s worth noting that sending Interac e-Transfers incurs a fee of $1.25 per transfer.
While Motusbank may not be as widely recognized in the Canadian banking landscape, its competitive interest rates, absence of daily banking fees, and additional benefits make it a noteworthy contender among the best HISAs in Canada.
Despite not making our best-of list, it’s worth taking a look at what the other Big Five banks offer for HISAs.
TD ePremium Savings Account
The TD ePremium Savings Account offers a competitive interest rate of 1.70% on balances exceeding $10,000, coupled with the advantage of no monthly fees and unlimited online transfers.
However, it’s essential to note the relatively high minimum balance requirement and potential fees associated with certain transactions. To maximize the benefits of this account, it’s advisable to use it solely as a savings account to steer clear of any additional costs.
CIBC eAdvantage Savings Account
CIBC’s eAdvantage Savings Account presents a tiered regular interest rate structure:
Moreover, by consistently contributing at least $200 per month (up to a maximum of $200,000), customers can secure an additional 0.50% interest rate.
While the account does not incur any fees, each transaction carries a $5 charge.
BMO Savings Builder Account
The BMO Savings Builder Account offers a base interest rate of 0.50%. However, account holders have the opportunity to earn a bonus interest rate of up to 2.50% by meeting monthly deposit requirements. To qualify for the bonus rate, customers must increase their monthly balance by at least $200, up to a maximum balance of $250,000.
The account is free to open and maintain, with no minimum balance requirements. However, after the first free transfer each month, subsequent transactions incur a $5 fee.
Royal Bank High Interest eSavings Account
RBC offers a High-Interest Savings Account (HISA) with a standard interest rate of 1.60%. The account has no monthly fee and allows free transfers from the HISA to another RBC account in the account holder’s name.
Additionally, the account includes one complimentary RBC ATM withdrawal per month. Any additional transactions beyond this allowance incur a fee of $5 per transaction.
While high-interest savings accounts are prevalent, high-interest chequing accounts are relatively rare in Canada. Nonetheless, we find it worth mentioning a chequing account option.
Regular interest rates for the Simplii Financial High Interest Savings Account vary based on the account balance. For balances up to $49,999.99, the rate is 0.01%. Balances from $50,000 to $99,999.99 earn 0.05%, and balances of $100,000 or more earn 0.10%.
New clients can take advantage of a promotional offer by using the promo code EARNMORE. This offer includes up to $400 cash back and a promotional savings rate of 5.25% for five months when opening a chequing account and savings account.
Additionally, clients can earn 6% on their savings accounts for up to five months.
There is no minimum account balance requirement for this account.
Tangerine is renowned for its fee-free accounts and low fees. Among its offerings is the Tangerine No-Fee Daily Chequing Account, which boasts zero fees for daily transactions and offers interest on every dollar in the account. The interest rate ranges from 0.01% to 0.10%, depending on your account balance.
This no-fee account includes unlimited debit purchases, bill payments, and pre-authorized payments. Additionally, it provides free and unlimited Interac e-Transfer transactions.
While the interest rate may not be exceptionally high, it’s worth checking the Tangerine website for any promotional rates they may be offering.
Switching to a high-interest savings account can significantly boost your savings by earning higher interest rates compared to traditional savings or checking accounts. This translates to faster growth of your savings over a shorter period.
However, there might be some conditions attached. Some high-interest accounts require a minimum deposit, maintenance of a minimum balance, or regular fees. Yet, it’s essential to note that this isn’t always the case.
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