If you’ve been saving money in a regular savings account, you’ve probably noticed the low-interest rates and high fees associated with it. However, if you’re seeking an account that can accelerate your savings, it’s time to delve into the world of high-interest savings accounts, commonly known as HISAs.
A high-interest savings account, or HISA, offers the advantage of high-interest rates coupled with low fees, facilitating a quicker and more cost-effective approach to achieving your financial goals.
But are all HISAs created equal? Not at all. Some HISAs offer benefits on par with regular savings accounts. While the best high-interest savings accounts do indeed provide attractive interest rates, there are other criteria for comparison. Certain HISAs also feature minimal transaction fees, low service charges, and opportunities to earn cash back.
Today, I’ll introduce you to the 10 best high-interest savings accounts in Canada based on my personal experience and the successful strategies others employ. Are you ready to explore the best HISAs in Canada with me? Fantastic! Let’s get started!
The 10 Best High-Interest Savings Accounts in Canada
We have carefully selected these best HISAs based on their impressive interest rates, low fees, and various other factors that make them stand out in the Canadian financial landscape. Whether you’re a seasoned saver or just starting on your financial journey, you’ll find valuable insights here to guide you towards the most rewarding HISA for your needs.
Let’s look closely at the top-performing HISAs that can help you maximize your savings and achieve your financial aspirations.
1. Scotiabank Momentum PLUS Savings Account
The Scotiabank Momentum PLUS Savings Account is one of the high-interest savings accounts available in Canada. What sets this account apart is its flexibility, offering three different interest rates: a standard interest rate of 0.05%, a premium period interest rate ranging from 0.15% to 0.45%, and an ultimate package interest rate of 0.10%.
However, it’s important to note that the Scotiabank Momentum PLUS Savings Account does come with a $5 transaction fee for non-self-service transfers. Despite this fee, the account’s unique interest rate structure makes it worth considering for those looking to optimise their savings strategy.
Key Features
- Regular Interest Rate: up to 5.60%
- Monthly Fees: $0
- Transaction Fees: $5 (for the non-self-service transfers).
- Minimum Balance: None
- CDIC Protection: Yes
2. Oaken Financial Savings Account
The Oaken Financial Savings Account is a standout choice among the best HISAs in Canada. It boasts attractive high-interest rates while requiring no minimum balance or monthly fees.
One of the most reassuring features of this account is that your deposited funds are fully insured by the Canadian Deposit Insurance Corporation (CDIC). Knowing your money is protected means you can have peace of mind.
Additionally, the Oaken Savings Account calculates your interest rate daily and monthly. This level of flexibility allows you to access your funds whenever you need them without incurring any penalties.
Key Features
- Interest Rate:3.40%
- Monthly Fees: $0
- Transaction Fees: $0
- Minimum Balance: None
- CDIC Protection: Yes
3. EQ Bank Savings Plus Account
The EQ Bank Savings Plus Account secures a prominent position among Canadian HISAs, boasting an impressive 1.25% interest rate.
What sets the EQ Bank Savings Plus Account apart is its competitive interest rate and the array of complimentary perks it offers for transfers and bill payments.
Furthermore, this high-interest savings account combines the features of a chequing account, enhancing its flexibility and setting it apart from other HISAs in the market.
Key Features
- Interest Rate:4.00%
- Monthly Fees: $0
- Transaction Fees: $0
- Minimum Balance: None
- CDIC Protection: Yes
4. MAXA Financial High-Interest Savings Account
The MAXA Financial High-Interest Savings Account, boasting an impressive 1% interest rate, undeniably earns its place among Canada’s top HISAs.
What sets this account apart is its user-friendly terms – there are no minimum balance requirements or monthly fees, ensuring a cost-effective approach to saving.
However, it’s worth noting that, unlike some Canadian counterparts, this account comes with transaction fees.
Key Features
- Interest Rate: 3.55%
- Monthly Fees: $0
- Transaction Fees: Yes
- Minimum Balance: None
- Deposit Protection: Guarantee Corporation of Manitoba
5. National Bank High-Interest Savings Account
The National Bank of Canada High-Interest Savings Account ranks prominently among the top HISAs in the country. Despite its modest interest rate of 0.05%, it secures its position among the best due to its remarkable features. This account boasts zero monthly and transaction fees and imposes no minimum balance requirement.
Furthermore, one of the standout features of this account is its flexibility in allowing unlimited, fee-free transfers to your National Bank personal bank account. This feature ensures convenient access to your funds while minimising any associated costs, making it an attractive choice for those seeking a hassle-free savings solution.
Key Features
- Interest Rate: 1.70%
- Monthly Fees: $0
- Transaction Fees: $0
- Minimum Balance: None
- CDIC Protection: Yes
6. Bank of Montreal BMO TFSA Saving Account
The Bank of Montreal (BMO) TFSA Savings Account is an excellent choice for individuals seeking a high-yield account that provides valuable tax benefits.
Within this account, you have the flexibility to choose between registered and unregistered TFSA accounts, ensuring that they cater to your specific financial requirements.
This means you can opt to watch your money flourish tax-free within a TFSA cash account or explore the opportunities to invest in TFSA investment accounts, including options like ETFs, GICs, stocks, and mutual funds. This diverse range of choices empowers you to tailor your savings strategy to suit your unique financial goals and preferences.
Key Features
- Interest Rate: 1.05%
- Monthly Fees: $0
- Transaction Fees: $9.95 (for each trade)
- Minimum Balance: None
- CDIC Protection: Yes
7. TD Bank High-Interest Savings Account
The TD Bank High-Interest Savings Account offers a fee-free experience with no monthly fees or minimum balance requirements. However, it’s important to note that this account only begins to accrue interest on deposits of $5,000 or more, with a modest 0.050% interest rate.
Moreover, if you maintain a minimum monthly balance of $25,000, you won’t encounter any transaction fees. However, for those with balances below this threshold, a nominal transaction fee of $5.00 will apply. This means the account’s benefits are most pronounced for those who can maintain a higher balance.
Key Features
- Interest Rate: 0.050% (for $5000.00 deposit and above)
- Monthly Fees: $0
- Transaction Fees: $0 (for a minimum monthly balance of $25,000)
- Minimum Balance: None
- CDIC Protection: Yes
8. CIBC eAdvantage Savings Account
The CIBC eAdvantage Savings Account is open to all Canadians who have reached the legal age of majority in their respective province or territory.
While the base interest rate is relatively modest at 0.05%, it’s noteworthy that new users of the CIBC eAdvantage Savings Account are entitled to a generous 1.25% bonus.
Furthermore, this account allows you to conduct complimentary transactions to your linked personal CIBC bank account, making it convenient for managing your finances. However, please be aware that a 5% charge applies to other types of transactions.
Key Features
- Interest Rate: up to 5.60%
- Monthly Fees: $0
- Transaction Fees: 5%
- Minimum Balance: None
- Overdraft Protection: Yes
9. Saven Financial High-Interest Savings Account
Don’t let its recent entry into the market fool you—Saven Financial High-Interest Savings Account earns a well-deserved spot among Canada’s top HISAs.
This up-and-coming online bank boasts an impressive interest rate of 1.35%, making it a formidable contender in the HISA landscape. What sets it apart is its commitment to simplicity and cost-effectiveness. There are no monthly fees, no transaction fees, and no minimum balance requirements to worry about.
With this appealing combination of features, Saven Financial is poised to disrupt Canada’s existing online banking options, offering a high-value HISA that’s hard to ignore.
Key Features
- Interest Rate:4.15%
- Monthly Fees: $0
- Transaction Fees: $0
- Minimum Balance: None
- FSRA Protection: Yes
10. Neo Financial High-Interest Savings Account
The Neo Financial High-Interest Savings Account, boasting an impressive 3.75% interest rate, earns a well-deserved spot on our list of top HISAs in Canada.
What sets this account apart? Not only does it offer a high interest rate, but it also comes with no minimum balance requirements, no monthly fees, and zero transaction fees.
This HISA is an excellent tool for both short-term financial goals and long-term wealth-building strategies.
Key Features
- Interest Rate:4.00%
- Monthly Fees: $0
- Transaction Fees: $0
- Minimum Balance: None
- CDIC Protection: Yes
For more information about this account, check out this Neo Financial review.
What is a High-Interest Savings Account?
Simply put, a HISA is a type of savings account designed with one key feature in mind: high interest rates.
In essence, HISAs allow you to earn substantial interest on your savings while keeping pesky fees to a minimum. This attractive combination makes HISAs particularly appealing to savvy investors who aim to maximise their returns without breaking the bank.
These accounts are a reliable avenue for stashing away funds for emergencies or working towards short- and long-term financial objectives.
In Canada, most HISAs are provided by financial institutions, such as banks and credit unions, that operate exclusively in the digital realm. This digital-only approach allows these institutions to offer HISAs with greater efficiency since they don’t need physical branches, and as a result, they can pass on the benefits to customers in the form of higher interest rates.
Features of a High-Interest Savings Account
When considering where to entrust your hard-earned money, it’s essential to recognize that not all High-Interest Savings Accounts (HISAs) offer the same advantages. Here, we will highlight five common features that distinguish the best high-interest savings accounts in Canada:
- High-Interest Rate: The hallmark of the best HISAs is their remarkable interest rates compared to regular savings accounts. This means your money can grow significantly faster when placed in a HISA than a standard savings account.
- No Monthly Fees: You won’t encounter any monthly fees with a HISA. In contrast, regular savings accounts often burden you with various monthly charges, such as maintenance and withdrawal fees.
- Low Transaction Fees: Most HISAs impose minimal or zero fees for transactions and monthly maintenance. This feature allows you to maximise your earnings while minimising expenses.
- No Minimum Balance Requirement: Opening a HISA typically requires as little as $1, eliminating the need for a substantial initial deposit. This flexibility empowers you to save more and still benefit from a high-interest rate.
- Deposit Protection: HISAs offer the advantage of high-interest earnings with added protection. In the event of unforeseen circumstances affecting your account, you can have peace of mind knowing that your funds are secure.
High-Interest Savings Account Vs Regular Savings Account
When comparing High-Interest Savings Accounts (HISAs) to regular savings accounts, it becomes clear that several notable distinctions are worth considering.
Firstly, HISAs offer significantly higher interest rates than the generally low rates associated with regular savings accounts. This means you can accumulate more savings over time by choosing a HISA.
Secondly, most HISAs do not impose monthly fees, such as maintenance charges. Conversely, regular savings accounts often come with these recurring fees, which can substantially increase the overall cost of preserving your funds.
Thirdly, HISAs provide greater flexibility regarding access to your money, allowing you to withdraw whenever needed. In contrast, regular savings accounts often have stricter withdrawal regulations and limitations.
However, it’s important to note that HISAs have their own limitations compared to regular savings accounts. These restrictions typically include withdrawal frequency, transfer options, and minimum balance requirements.
Final Thoughts on the Best High-Interest Savings Account
Finding the best high-interest savings account has never been more crucial for securing your financial future. As I’ve explored the top options and shared valuable insights, it’s clear that these accounts offer a powerful way to make your money work harder for you.
Now, it’s your turn to take action. Take the first step towards greater financial stability by selecting the best high-interest savings account that aligns with your goals and needs. Your savings journey begins today!
FAQs on the Best High-Interest Savings Accounts
Is a High-Interest Savings Account Good?
This type of savings account is good because it offers you a high interest rate with low or zero monthly fees and transaction fees. This is a cost-effective means to achieve your short or long-term goals.
Can You Lose Money in a High-Yield Savings Account?
Once there’s deposit protection, you can’t lose money in a high-yield savings account. That’s why you must invest only in a high-yield savings account with deposit protection.
Are You Taxed on High-Interest Savings?
Depending on the type of HISA you open, you may or not be taxed. For example, TFSA HISAs are tax-free for life. But earning on cash HISAs are seen as income, hence the need to pay tax.
What Other Types of Savings Accounts are Available?
Other types of savings accounts that are available are tax-free savings accounts and retirement savings accounts. These accounts have tax benefits that help you to maximise your savings without worrying about taxes. However, unlike TFSA, RRSP accounts have withdrawal charges. Thus, it’s essential to understand how the two accounts operate before opening them.
