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The 30 Best High Interest Savings Accounts in Canada

high interest savings account

    When depositing your money into a saving account, why not make your money work for you at a higher rate? Selecting a high-interest savings account instead. From the Big 5 Banks in Canada to smaller financial companies, you have a variety of highinterest savings accounts available to you. The highest regular interest rate is currently 4.80% with Equitable Bank. The best promotional rate is 6% by Tangerine and Simplii.

    From no minimum or maximum deposit to no additional account fees, we have gathered the best high-interest savings account in Canada. Some of them are offred by big banks, while others belong to smaller banks, credit unions, online banks and innovative financial companies.

    Unless indicated othterwise, these savings accounts are available across the country. You can compare savings accounts for yourself and select your province or territory to help you choose your next high-interest savings account!

    Best All-in-One High Interest Savings Accounts in Canada

    Let’s begin our journey by less well-known but innovative financial companies. They help you maximize your returns through a combination of credit, chequing and saving features. With KOHO, EQ Bank, Wealthsimple and Neo Financial, all your money lives in one account and gets linked to your card. This way, all your deposits automatically start earning interest. So, you can then spend the way you want, without having to transfer it to a chequing account. These companies now offer some of the best high-interest savings account in Canada.

    KOHO Savings Account: up to 5.00%

    KOHO is a fintech that offers a prepaid credit card and savings account all in one. This way, you get discounts on your purchases while your balance grows too. The interest you earn depends on your subscription. Here’s how it works:

    Easy Plan (Free): earn 3.00% on the entire balance
    Essential Plan ($4/month): earn 5.00% on your entire balance
    Extra Plan ($9/month): earn 5.00% on your entire balance
    Everything Plan ($19/month): earn 5.00% on your entire balance

    You can also use your card to book flights and hotels for travel and get up to a 6.00% discount with Booking.com with some paid plans.

    Wealthsimple Cash Account: up to 5.00%

    When you open an account with Wealthsimple Cash, your interest rate sits at 4%. If you become a premium client, you get 4.50%. And if you are a Generation client, your rate goes up to 5%. You also get instant 1% back in stocks, cryptocurrency or cash on every dollar you spend with your Wealthsimple card. Wealthsimple partnered with a number of federally regulated Canadian Financial Institutions to take advantage of a combined CDIC eligible coverage amount. Your deposits are protected up to $300,000. 

    You can send money to friends and family in seconds, at no extra cost, up to $5,000 a day. With Wealthsimple Cash, you have a real card or a digital card for contactless payments. Your money is kept secure through the use of data encryption and a dual authentication system. Wealthsimple has added an extra layer of protection to secure its consumers’ savings.

    NEO High Interest Savings Account: 3.40%

    [Offer productType=”SavingsAccount” api_id=”65496a205095a94f68b0f812″]

    A major player among digital startups is making its mark by offering 3.4% interest on every dollar in your account. The no-fee Neo HISA account is the latest offer from Neo Financial. You will be able to make free instant transfers between your Neo accounts. To better organize your spending, you can open up to 10 customizable accounts to organize your money and track your goals. There is no minimum balance and the app makes it easy to track your savings. The Neo High-Interest Savings account is provided by Peoples Bank of Canada and is eligible for CDIC deposit protection.

    EQ Bank Savings Account: up to 3.00%

    [Offer productType=”SavingsAccount” api_id=”5f3e766e0c35c17fad9db85f”]

    One of the best high interest savings accounts on the market belongs to a digital player. It’s the EQ Bank Personal account. You get a 2.50% interest rate on every dollar and pay no monthly fees, plus 0.50% bonus interest when you direct deposit your pay or set up recurring pre-authorized debits. This EQ account offers a variety of other benefits, such as no fees for daily banking services and Interac transfers, as well as free bill payments, electronic transfers and transfers between EQ accounts. There is no minimum balance requirement and the maximum balance per client is capped at $200,000.

    For any international money transfer, EQ is partnering with Wise to help you pay less on any money transfer sent abroad. There are no additional hidden fees or markups, the real exchange rate is what is displayed online. A calculator is available on the EQ website to check out the real exchange rate for yourself.

    For example, let’s say you want to send $1,000 in Euros to a friend. Wise will take a fee of $5.85 and the remaining $994.15 will convert to 725.96 Euros and go to your recipient. You can check out other currency rates on the EQ website and compare them with other financial institutions.

    Best Major Banks High Interest Savings Accounts in Canada

    With competition from these new players, are te Big 5 still in the game? Yes, they are! The Big 5 and other large banks offer some of the best high interest savings accounts in Canada. Big banks offer a wide variety of services, extensive online and phone support and basically make their customers feel secure. If you feel more comfortable doing business with a large bank, pick one of these high interest savings accounts.

    High Interest Savings Account from Laurentian Bank: up to 4.00%

    [Offer productType=”SavingsAccount” api_id=”62aa0020cfccaa72421ff08f”]

    Smaller than the big banks like BMO, CIBC or RBC, Laurentian Bank knows how to surprise its customers with some interesting products, including one of the best high interest savings accounts in the country. The High Interest Savings Account from Laurentian Bank of Canada will accommodate all your needs. It offers an attractive annual interest rate of 3%, which is calculated on your daily minimum balance and paid monthly. There is no minimum balance nor monthly fees. If you’ve saved a large sum, you’ll receive 4.00% interest on any amount between $100,000 and $5,000,000.

    CIBC eAdvantage Savings Account: 1.90%

    The CIBC eAdvantage Saving Account lets you maximize your savings by earning interest on every dollar you save. This saving account has an interest rate of up to 1.90% with no monthly fee. To get it, you need a balance of $500,000 or more. Under $10,000, the rate is just 0.65%. Under $25,000 (but starting at $10,000), your balance will earn 0.85%, with rates rising to 1.90% on balances of $500,000 or more. Plus, you can get 0.50% every month you save at least $200, up to a balance of $200,000. There’s also a special offer to earn a bonus rate for the first months. In total, you can earn up to 5.60% interest.

    Each transaction has an additional fee of $5 which includes debit purchases, CIBC withdrawals even through CIBC ATMs, Interac eTransfers, CIBC personal cheques, automatic pre-authorized withdrawals, and bill payments. Any transfers of money between your CIBC personal bank accounts using online banking are free. Some of the features included with this saving account are a recurring transfer option to help you achieve your saving faster, some expert guidance to steer your finances in the right direction, and the possibility to deposit cheques with your phone using the CIBC eDeposit. The CIBC Smart Balance Alert gives you a heads-up when your account is short on funds. It is a helpful tool to avoid non-sufficient funds fees and declined payments. A savings calculator is available on the CIBC website to give you the amount of time required for you to achieve your savings goal.

    Savings Amplifier Account at BMO: 1.90%

    With no monthly fee and no minimum deposit, the Savings Amplifier Account BMO rewards you with a 1.90% interest rate, helping you reach your financial goals faster. You can also take advantage of a promotional interest rate of 5.50% for up to 120 days when you open both a Performance chequing account and a savings amplifier account. All self-serve transfers to your other BMO accounts are free. A $5 fee applies to all pre-authorized debits, cash withdrawals and transfers made in-branch or by phone.

    TD ePremium Savings Account: 1.85%

    The TD ePremium Savings Account helps you save more with its high-interest rate and free online transfers. This saving account offers a rate of 1.85% for any account balance over $10,000. You will not earn any interest at all if your balance is under $10,000. No monthly fee is charged with this account and comes with unlimited online transfers between other TD Canada Trust deposit accounts. Debit transactions will cost you $5 each. Interac eTransfers are also free of charge. An automated saving service is available to help you save even more. Finally, the ATM fees are $2 for external ATM withdrawals, $3 for ATMs in the US withdrawals, and $5 for abroad ATM withdrawals outside the US or Mexico.

    High-Interest Savings Account National Bank: 1.70%

    The High-Interest savings account from the National Bank has an interest rate of 1.70% with no minimum balance or monthly fees. You will receive one free debit transaction, for any additional transactions made a fee of $5 will be charged. All Interac eTransfers will have a fee of $1.25 per transaction. You have access to free and unlimited funds transfers between your National Bank accounts. Some additional benefits with this High-Interest Savings Account include easy access to your funds at any time and the systematic saving plan which is deposited automatically into your savings account. This saving account can act as your emergency fund which will provide you with a financial cushion against the unexpected and withdraw it anytime.

    RBC High Interest eSavings: 1.70%

    The RBC High Interest eSavings account also offers a 1.70% interest rate on all amounts deposited. This savings account comes with no fixed monthly fee. Currently, there is a special offer that gives you a total rate of 5.50% for a three-month period.

    You can deposit the amount you want into your account as there is no minimum deposit required. You will receive one free debit transaction, for any additional transactions a fee of $5 will be charged. All Interac eTransfers have a fee of $1 per transaction. Get one free RBC ATM cash withdrawal per month, for any additional debit transactions a fee of $5 will be charged.

    All Interac eTransfers and cross-border debits will have a fee of $1 per transaction. Receive free electronic self-service transfers which include ATM and unassisted telephone fund transfers from this account to any other RBC Royal Bank personal deposit account in your name. You will also receive free access to RBC Online, Mobile, and Telephone Banking. For all ATM withdrawals made abroad, the fee will be of $5, and all ATM withdrawals made in the US will be a fee of $3.

    This saving account comes with expert guidance, cash bonuses for saving and some exclusive perks. Finally, you can set up your Save-Matic from your banking account to help you save more automatically.

    Momentum PLUS Saving Account from Scotiabank: 1.40%

    The Momentum PLUS savings account from Scotiabank lets you save for multiple goals in one account. You can easily choose the timeline for your savings goals and track it as you earn. The regular interest rate on this account is 1.40%, but you can earn up to 5.60% with promotional offers.

    If no debit transactions have been made after 90 days the premium period interest will be 0.85%, after 180 days the rate will be 0.90%, after 270 days the rate will be 1.00%, and finally, after 360 days, the rate will be 1.25%. Ask for the Ultimate package and get an additional 0.10% annually added to any Momentum PLUS saving account which is calculated daily and paid monthly. And finally, the current offer gives you a bonus 3.30% rate on deposits for the first 5 months following the opening of your account.

    Some of the additional features offered with this saving account are no monthly account fees or minimum balance required, unlimited self-service transfers, automatic savings plans, mobile and online banking, and finally mobile cheque deposits. Each debit transaction that is not a self-service transfer will be charged $5.

    Best Credit Unions High Interest Savings Accounts in Canada

    Banks are for-profit organizations. Credit unions are not-for-profit institutions. They aim to serve their members and don’t pay dividends to outside stockholders as is the case with banks. While your deposits to most banks in Canada are protected by the Canada Deposit Insurance Corporation (CIDC) up to $100,000, credit unions protect your money in a different way. The majority of credit unions are governed by their respective provincial governments, which means your deposits are covered through provincial insurance plans.

    Daily Interest Saving Account from Achieva Financial: 3.60%

    The Daily Interest savings sccount from Achieva Financial allows you to earn high interest on your savings while keeping them fully accessible. This saving account has one of the highest rates in Canada. Its consistent interest rate is 3.60%. The interest is calculated on the daily closing balance and paid on the last day of each month. There is no minimum balance and account fee.

    An automatic Saving Program allows you to save more money faster. This saving account has free deposits, one free cheque, direct transfer or pre-authorized payment every month. One dollar per month is paid to you when you choose to receive your documents electronically. A referral bonus of $100 maximum per year is available if you can refer up to 4 friends to Achieva Financial; you and your referral will each make $25 each when they open an account with your referral code.

    Outlook Financial High-Interest Savings Account: 3.60%

    The Outlook Financial High-Interest Savings Account helps you keep more money in your pockets. The interest rate offered is 3.60%, calculated daily and paid monthly. Pay no monthly account fees while earning high-interest rates, and still have more cash on hand when you need it. There is no minimum balance required to open a savings account. For easier access to your funds, Outlook Financial offers checking privileges and a debit card for ATMs and Point-of-Sale Access. Debit transactions come with different fees depending on the type of transaction, which you can find in the Service Fee section of the website. Outlook is a division of Assiniboine Credit Union. All your Outlook Financial deposits and interest are 100% guaranteed by the Deposit Guarantee Corporation of Manitoba.

    High-Interest Savings Account from Meridian Credit Union: 2.50%

    This account from Meridian Credit Union lets you earn 2.50% on every dollar you deposit. This rate is calculated daily and paid monthly. This saving account has no monthly fee and offers unlimited free debit transactions. You can withdraw your funds without surcharge fees at over 43,000 ATMs with THE EXCHANGE Network in Canada and the Allpoint Network in the US.

    For any external ATM withdrawals, a fee of $2 will be charged and for any international ATMs withdrawals, such as the US, a fee of $3 will be charged. A High-Interest Savings Calculator is available on the Meridian website where you can see how you can achieve your savings goals. For example, let’s say you have an initial deposit of $20,000 with a recurring monthly deposit amount of $400, you will have a saving of almost $25,000 after only 1 year. You can access your funds through multiple ways including branches, online, mobile, and telephone banking. With your high-interest savings account, you’ll get your Meridian debit card with Interac Flash to make payments through Interac Debit in Canada and ACCEL in the US. All Interac eTransfers have a fee of $1.50 for each transaction. This account is available in Ontario only.

    High-Interest Savings Account Desjardins: 1.70%

    desjardins logo

    The high-interest savings account from Desjardins offers a rate of 1.70%. There is no service or monthly fees associated with this savings account. Inter-institution transfers between this account and your other Desjardins accounts are allowed and free at all times. This savings account is eligible for member cash back that Desjardins pays annually. This means you could get a few extra dollars. Finally, the number of authorized debit transactions is unlimited. Finally, this account gives you unlimited amounts of debit transactions.

    Coast Capital High Interest Savings Account: 1.60%

    Available in British Columbia, Coast Capital Savings offers a 1.60% high interest savings account. Subject to no monthly fee, this account also lets you make 2 free monthly transactions. You will pay $5 per additional transaction and $1.50 to send an e-Transfer. Coast Capital is a member-owned cooperative. In addition to Coast Capital ATMs, members get ding-free use at any ATM on The EXCHANGE® Network across Canada.

    Best High Interest Savings Accounts from Online Banks

    How do smaller banks compete with the big ones? By adressing their customers’ needs and giving you what you want! Being online helps them reduce costs and allows them to offer higher rates. That is why you will generally find savings accounts with higher rates in this category. Moreover, they often have user-friendly apps and websites.

    Tangerine Savings Account: 1.00% (6.00% promotional offer)

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    The Tangerine Savings account has no minimum balance, no service charges, and no extra fees. It helps you earn high interest on every dollar. This saving account normally has an interest rate of up to 1.00%. A special offer is currently available, where you can get a 6.00% rate on your savings account for the first 5 months.

    Some of the key features this saving account bring are advantageous rates, no service or extra fees, no minimum balances, and a personalized saving goals. With the Automatic Saving Program, you can move money directly to your Tangerine Savings Account. A savings calculator is available on the Tangerine website, which helps you visualize your saving objectives. For example, if your total saving goal is $15,000, your regular savings amount is $200 that you withdraw bi-weekly. It will take three years to achieve your objective with this account.

    Simplii Financial High Interest Savings Account: 0.40% (6.00% promotional offer)

    Simplii Financial is an online digital bank brought to you by CIBC. The Simplii Financial High Interest Savings Account offers no monthly or transaction fees, or minimum balance requirements. The starting interest rate on this account is 0.40%, which is calculated daily on your closing account balance and then paid out to your account monthly. However, it can go up to 1.25% if your balance is above $500,000 and 5.50% if it’s above $1,000,000. Moreover, there is currently a special offer for new clients, where you can earn 6% interest on a new Simplii Financial High Interest Savings Account for 5 months.

    The Simplii Financial High Interest Savings account cannot be accessed through an ATM. You have to transfer funds from your savings account to your chequing account first, then you can use an ATM to withdraw the money from your chequing account. You can access your money for free through any CIBC ATM in Canada; non-CIBC ATMs usually come with transaction fees and a surcharge from the owner of the ATM.

    For quickest and easiest access to the money in your Simplii Financial High Interest Savings Account, you’ll want to open a chequing account with them too. A Simplii Financial Chequing account comes with free unlimited debit card purchases, withdrawals, bill payments, and Interac eTransfers. To grow your savings even faster, refer a friend and get a $ 50 cash bonus. There is no limit to the number of people you can refer, which means there is no limit to the referral cash bonus you can earn. Conditions and restrictions apply. Simplii is not available in Quebec.

    High-Interest Savings Account from Equitable Bank: 4.80%

    The High-Interest Savings Account from Equitable Bank offers two types of products; Series A and Series F for both personal and corporate clients. For the purpose of this article, we are only looking at personal high-interest savings accounts. The interest rate of Series A is 4.65%, and for Series F is 4.80%.

    This is one of the best saving accounts in Canada. It has a minimum balance of $500 and a maximum of $500,000. All interest fees are calculated daily on the closing balance and paid monthly as reinvested distributions. You’ll get an unlimited amount of deposits or withdrawals transactions without any fees for non-registered and registered accounts. Get easy access to your funds at all times. There are not locked-in periods or maturity dates.

    Canadian Tire High Interest Savings Account: 3.70%

    Did you know that Canada’s favorite store also offers financial services? The Canadian Tire High Interest Savings Account currently offers an annual interest rate of 3.70%, which is paid monthly. This account doesn’t require a minimum balance and comes with no monthly fees. Up to $100,000 is covered by the CDIC. You can transfer funds online or by phone. This savings account is not available in Quebec.

    The Advantage Account by Manulife: 2.85%

    The Manulife Bank Advantage Account combines your banking to get the flexibility of a chequing account with the high interest of a savings account. This high interest savings account offers an interest rate of 2.85% without any minimum balance required. With the promotional offer, you can get 5.25% for the first 4 months. Receive unlimited free transactions when you maintain a minimum account balance of $1,000. For any amount below that, the additional debit transactions are $1 per transaction. You always have easy access to your money from thousands of ATMs and in-store cash back, plus online mobile and telephone banking. The fee of an external ATM is $1.50, withdrawing from ATMs outside Canada will be charged $3.00 per withdrawal, and ATMs outside the The Exchange Network usually charge their own convenience fees too.

    High-interest saving account from Motusbank: 2.50%

    The high-interest saving account from Motusbank gives you a high-interest rate on your savings regardless of your balance. This saving account has an interest rate of 2.50% with zero monthly account fees and no minimum balance required. You are eligible to deposit an insured amount of up to $100,000 by CDIC with unlimited debit purchases and withdrawals. You are able to withdrawal from over 43,000 THE EXCHANGE® Network ATMs across North America for free. This savings account comes with zero daily banking fees. This account is not available in Quebec.

    High-Interest eSavings Account Alterna Bank: 2.25%

    The high-interest eSavings account from Alterna Bank helps you grow your money with its high interest of 2.25%. It also offers no monthly fees, free unlimited bill payments, transfers, debits, and Interac e-transfers. No minimum balance is required when using this saving account. Alterna Bank has an online banking interface to give access to your finances anywhere and anytime.

    Summit Saving Account from Canadian Western Bank: 1.40%

    The Summit Savings Account from CWB makes your dollar work harder for you so you can spend it at any time. The interest rate is 1.40% regardless of the amount deposited. This rate is calculated on the daily closing balance and paid on the last day of the month. This savings account has free transfers between CWB accounts to help you move your funds easily. There are no monthly fees or minimum balance required. There are no free debit transactions, every debit out of your account will cost you $5. All ATM withdrawals external, in North America, or internationally have a fee of $5 too. This account is only available in British-Columbia, Alberta, Saskatchewan and Manitoba.

    HiSAVE Savings Account Online ICICI Bank: 1.25%

    The HiSAVE Savings Account from ICICI Bank offers an interest rate of 1.25% on a Canadian Dollar savings account and 1% on a US dollar savings account. There is no banking fee or monthly fee. You can add the amount you want to your account with it’s no minimum balance required. There is no need to change your existing bank account, just link up to three of your existing checking accounts at any Canadian financial institution with your HiSAVE Savings account. You will then be able to transfer your funds between your accounts.

    ICICI Bank offers convenient banking services. You can have access to your funds in different ways, like online banking, by phone, or at an ABM. Debit transactions come with different fees depending on the type of transaction, which you can find in the fee disclosure statement for all accounts. The HiSave account is available in Alberta, Ontario and British-Columbia.

    Can You Open a High Interest Savings Account in a Non Bank?

    Financial services offered by non banks is a growing sector. Yes, you can open some of the best high interest savings account in Canada with a non bank. KOHO, Wealthsimple and Neo are non banks, but they are not the only ones. CI Direct Investing and ATB also offer interesting savings accounts. These two non banks offer high limits of protection for your deposits.

    ATB High-Interest Savings Account: 4.65%

    The ATB High-Interest Savings Account offers you liquidity, security, and high-earning potential for your money. You can access your funds at any time you want with no terms or maturity dates. The current rates for this savings account are:

    • 4.55% for the Personal Series A and SA
    • 4.65% for the Personal Series F and SF

    All those rates are for Canadian Dollar accounts. The minimum investment for a Series A and F is $1,000, and for the Series SA and SF, it’s $25,000. There is, however, no maximum amount you can invest. You can earn annual interest in either a registered or unregistered investment plan.

    You can open an account only if you live in Alberta since ATB Financial operates as a provincial corporation. Therefore, your money gets guaranteed by Alberta government. This level of protection is impossible to beat!

    High-Interest Savings Account from CI Direct Investing: 4.00%

    The high-interest saving account from CI Direct Investing lets you put your savings to work with its 4.00% interest rate. This interest rate is calculated daily and paid monthly. This savings account offers no additional fees. There are no monthly fees, account fees, low balance fees, or withdrawal fees. There is also no minimum balance required for this savings account. CI stocks your deposits with custodians subject to applicable securities laws and members of the Canadian Investor Protection Fund (CIPF) which provides protection for up to $1 million per account type.

    To help you grow your money faster, you can set up automatic contributions and watch your money grow. The balance in your savings account also helps you access lower management fees for your CI Direct investing accounts. The investment fee discount is available in tiers based on the balance of your savings account. As you achieve certain minimum balance milestones, you’ll unlock a better and better investing management discount.

    Best Smaller Banks and Financial Companies High Interest Savings Accounts in Canada

    Why deal with a small company? Well, some of them are not so small. Big financial companies sometimes offer banking services through a subsidiary. They claim you are their priority. We will let you be the judge of that! We found three of them offering rates above 3.00%.

    Smart eSavings from Bridgewater Bank: 3.45%

    The Smart eSavings account from Bridgewater Bank offers you an interest rate of 3.45% with an initial deposit requirement of $25, and no minimum ongoing balance is required. You can easily transfer your funds from other financial institutions. The feature “Set it and forget it” lets you set automatic pre-authorized contributions. This savings account includes several service fees. Receive one free withdrawal per month, after that it is $5 for any additional withdrawals per month. The fee for the dishonoured cheque or pre-authorized debit reversal is $20. There is no additional fee for inactive accounts, account history inquiry, duplicate statements, and transfers to another Bridgewater Bank Smart eSaving Account or a Bridgewater Bank GIC Account. This account is not available in Quebec.

    E-Savings from Peoples Trust Company: 3.40%

    Peoples Group is a financial services company and its division Peoples Trust Company is a member of the Canadian Deposit Insurance Corporation (CDIC). Their E-Savings account offers no monthly fees and because it is a non-register account there are no deposit limitations. With an interest rate of 3.40%, this is one of the highest interest rates on the market. This saving account includes additional features such as interest calculated daily and paid monthly, online banking support, view of monthly transactions online and easy transfer funds between your People Trust accounts and other financial institutions.

    Oaken Savings Account: 3.40%

    The Oaken Savings Account gives you an interest rate of 3.40%. This is one of the highest in Canada! On the Oaken website, you can compare the different rate offers in Canada with Oaken’s rates. Oaken Financial is backed by Home Bank and powered by Home Trust Company, which are members of the CDIC.

    With this savings account, you have no monthly fee or minimum account balance. Receive no limit to the number of transactions you can make free of charge. You can easily transfer money from your account to an Oaken GIC. You can also easily transfer your money out of your Oaken GIC once it reaches the matured balance. With Oaken Online Banking, you’re able to check your balances and manage your account whenever you need to. Set up automatic contributions as a saving strategy. You can also set up pre-authorized transfers from other bank accounts to your Oaken Saving Account. Oaken is available in Bristish-Columbia, Ontario, Nova Scotia and Alberta.

    FAQs on high interest savings accounts

    What is a high interest savings account?

    A high interest savings account is a savings account in which you can put money and earn interest at a higher rate than a regular savings account. It is particularly useful if you want to put money aside for a long period to accumulate as much interest as possible.

    How do high interest savings account work?

    Once you open your high interest savings account, you start depositing money in it. Depending on the bank, you may require a minimum deposit or balance. You then start earning interest at the rate established by the financial institution. This rate can change regularly. The earned interest is deposited in your account on a regular basis, most often monthly. Certain high interest savings accounts have operating fees, but not all of them do. You can compare them with our savings accounts comparison tool to find which one suits you best.

    Are high interest savings account safe?

    Yes, high interest savings accounts are generally recognized as extremely safe. Most banks insure your deposits with the CDIC up to a certain amount.

    How much tax will I need to pay on my high interest savings account?

    All of your earnings are taxable, as they are interest. The amount of tax will be calculated based on your tax rate when you file your annual return. For example, if you save 1,000$ at a 3.2% interest rate and your tax rate is 37%, you will pay more or less $12 in tax on your $32 annuel profit. If you want to save your money tax-free, put it in a TFSA.

    Which bank has the best high interest savings account?

    Offers change regularly and you always need to check for updates. Equitable Bank currently offers rates above 4%, which is very attractive and much higher than most other banks and financial companies.

    Are interests in a high interest savings account paid monthly in Canada?

    Yes, interests are usually paid once a month.

    Are high interest savings accounts worth it?

    If your TFSA is maximized, yes, it is appropriate to open a high interest savings account. In some cases, it is preferable to have maximized all your registered accounts (RRSPs, RESPs) since they are tax efficient.

    How is interest calculated in a high interest savings account?

    Usually, interest is calculated daily, but paid only once a month. The interest rate that is advertised on banks’ website is the annual rate.

    Are high interest savings accounts eligible as a TFSA?

    These are two different types of accounts, but many financial institutions may offer you the same interest rate for both.

    Sophie is the content specialist at Hardbacon. Her passion for fintech and personal finance was revealed during the 2016 Cooperathon where she received special award.