Review of High-Interest Savings Accounts In Canada 2024

High-interest savings accounts are a type of bank account that offers a significantly higher interest rate (Up to 10x more) compared to regular savings accounts.

Why should you use a High-Interest Savings Account?

These accounts are designed to help your money work harder for you, allowing you to earn more on your deposit without taking on excessive risks. Using HISAs is great for saving your emergency funds, towards a car purchase, travel funds, or a savings goal.

You’ll be surprised that the Big 5 banks in Canada offer some of the worst interest rates.

Criteria for Rating the Best vs Worse High-Interest Savings Account in Canada:

  • CDIC insurance: Canada Deposit Insurance Corporation (CDIC) is where banks are required to insure customers’ deposits. This is the most important criterion as you want to ensure your deposit is secured. All the banks or financial services providers listed here are directly insured with CDIC, under a member institution or a provincial regulatory authority.
  • Inflation Rate: Inflation is currently sitting at 2.9% as of April 2024. Any bank offering a rate higher than the current inflation rate is generally considered a good High-Interest Savings Account
  • Monthly Fee: How much you pay in monthly fees is relevant as you don’t want the fees to exceed the potential interest earned. Paying monthly fees on a bank account is so dated because you should not be paying the bank more money for holding your money.
  • Minimum Balance: Some bank accounts require a minimum balance in your bank account to open an account and sometimes to qualify for some benefits.
  • Fees for e-transfer: Transfer fees do add up. Knowing how much fees you may be charged for Interac e-transfers is really important in choosing a reliable HISA.
  • Interest Rates: What is the interest rate offered by this institution? Is it a base rate or a promotional rate? How long is it for?
  • Earnings after a year on $10,000: To put things into perspective, I’ll add how much you could expect to earn after one year with a balance of $10,000 in your HISA

Will it surprise you that a lot of the popular big banks are offering the lowest interest right now? Sometimes you might worry that the stress of opening a new bank account may not be worth it but trust me it is. I’m currently using some of these banks and I’ll leave my referral links to sign up. 

Why do digital or smaller banks offer higher interest rates than big ones?

  1. They are mostly digital banks which means they don’t have to spend money on office spaces or hire lots of employees
  2. Competition with bigger banks as they already have the customer base that these digital banks are trying to get into
  3. A lot of These banks as you’ll see soon are subsidiaries of the bigger banks, so they kinda get funding and support from them
  4. Banks make money by actually lending your money to their customers in the form of loans and mortgages and earn interest meanwhile they pay you a small portion of it as interest on your account.

Best interest rates offering above the current inflation rate of 2.9% (As of April 2024)

ListBankAccount NameInterest RateCurrent PromoFeaturesEarnings After a year on $10k
1Neo FinancialNeo High-Interest Savings Account4.00%– Neo Money Card
– $0 monthly fee
– No minimum balance
– CDIC insured (By Peoples Bank of Canada, a CDIC member institution)
– Unlimited free e-Transfer
$400
Get Offer
2.EQ BankEQ Bank personal account2.5% (4% if you set up a direct deposit of $500/month)– Offers EQ bank card a Reloadable prepaid
– $0 monthly fee
– No minimum balance
– CDIC-insured (Equitable Bank, a CDIC member institution)
– Unlimited free e-Transfer
$400
Get Offer
3WealthsimpleWealthsimple Cash4.00% (4.50% if you have $100,000 and/or set up direct deposits / 5.00% if you have $500,000) – Wealthsimple Cash card
– $0 monthly fee
– No minimum balance
– CDIC insured (Money is placed among x5 CDIC insured bank accounts, giving you $500k in coverage)
– Unlimited free e-Transfer
$400
Get Offer
4.Simplii FinancialSimplii High-Interest Savings Account0.40% (Goes up if you have $100k+)5.90% for 5 months (ends on July 31st, 2024) – $0 monthly fee
– No minimum balance
– CDIC insured (A wholly owned subsidiary of CIBC)
– Unlimited free e-Transfer
$40
Get Offer
5.Tangerine Tangerine Savings Account0.70%5.75% for 5 months – $0 monthly fee
– No minimum balance
– CDIC insured (Also a subsidiary of  Scotia Bank)
– Unlimited free e-Transfer
$70
Get Offer
6KOHOKOHO High-Interest Savings Account3.00% (Goes up to 5% for paid accounts)– Offers a reloadable prepaid card
– $0 monthly fee
– No minimum balance
– CDIC insured (Insured via Peoples Trust Bank of Canada)
– Unlimited free e-Transfer
$300
Get Offer
7Oaken Financial Oaken Financial Savings Account3.40% – $0 monthly fee
– No minimum balance
– CDIC insured (Insured via Home Bank or Home Trust Company which are both members of CDIC)
$340
8Laurentian Bank Laurentian Bank High Interest Savings Account3.00% (Goes up to 4% if you have $100,000+)– Debit & Credit cards
– $0 monthly fee
– No minimum balance
– CDIC insured
$300
9Motive Financial Motive Savvy Savings Account4.10% – $0 monthly fee
– No minimum balance
– CDIC insured
$410
10Saven Financial (Credit Union) Saven Financial High-Interest Savings Account4.15%– $0 monthly fee
– No minimum balance
– Insured with Provincial regulations for eligible deposits (In Ontario it is FSRAO).
$415
Best high-interest savings account in Canada 2024
Comparing the Best vs Worst high-interest savings accounts in Canada

Update Jun 4th, 2024 – EQ Bank has just launched a Notice Savings account that allows you to earn 4.5% or 5% interest rate with 10-30 days cash withdrawal notice. This is a better account for parking your cash than the current HISA. Sign up here

Worse interest rates Offering below the current inflation rate at 2.9% (As of April 2024)

These big five banks offer a debit card and a variety of credit card options. Hence, I’ll not be spotlighting each of them.

ListBankAccount NameInterest RateCurrent PromoNotesEarnings After a year on $10k
1TD BankTD ePremium Savings Account0.00% Goes up to 1.85% if you have $10,000+N/A – $0 monthly fee
– No minimum balance
– CDIC insured
– $1.50/e-Transfer
$0
2CIBCCIBC eAdvantage Savings Account 0.65%Goes up to 1.50% if you have $100k+5.75% for 4 months – $0 monthly fee
– No minimum balance
– CDIC insured
– $0.50-$1.00/eTransfer
$65
3ScotiabankScotiabank Momentum PLUS Savings Account 1.30% 6.05% Welcome Bonus Interest Rate for 3 months– $0 monthly fee
– No minimum balance
– CDIC insured
– $2.00/eTransfer
$130
4BMOBMO Savings Amplifier Account 1.90%5.50% (expires on Aug 31st, 2024) – $0 monthly fee
– No minimum balance
– CDIC insured
– $1.00/e-Transfer
$190
5RBCRBC High Interest eSavings1.70%5.50% for 3 months (expires on April 10th, 2024) – $0 monthly fee
– No minimum balance
– CDIC insured
– $1.00/e-Transfer
$170
Worse high-interest savings account in Canada 2024

Read More on Everything You Need to Know About High-Interest Saving Accounts in Canada

Conclusion

I have had the EQ bank for over a year now, I love that you can have multiple accounts as you can separate your sinking funds, I also have Wealthsimple cash, and I use their investing very often. I have Simplii Financial and I’ve also used KOHO, which I recommend for credit building. Also, I have RBC High-interest e-Savings, it was my first HISA and I rarely use it now.

Ultimately, the decision of which account to use is up to you but don’t get swayed by the promotional rates as they are mostly only for a couple of months. Except you’ll be committed to moving your funds around it’s usually not worth it. Also, just something to think about is the monthly fees or e-Transfer charges that may apply if you have to transfer using your interest savings account.

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