Best High Interest Savings Accounts in Canada (2021)

If you’ve been saving money in a regular savings account, then you know how low the interest is with high fees.

In contrast, a high interest savings account (HISA) gives you high interest with low fees, helping you achieve your financial goals fast and cost-effectively.

But are all HISAs the same? Of course not. Some HISAs are as good as regular savings account in every sense of the term.

Unfortunately, those so-called HISAs are so many today, making it challenging to identify the best high interest savings account.

But you don’t have to worry!

Here I present you the best HISAs in Canada based on my personal experience and what I have seen work for others.

So are you ready to join me in reviewing the best HISAs in Canada? Great!

Let’s go there!

Table of Contents

What is a High Interest Savings Account?

As the name implies, a high interest savings account (HISA) is a type of savings account that has high interest rates.

Additionally, a HISA gives you high interest in your savings with fewer fees. As a result, it is popular among investors who want to achieve much by spending less.

HISAs provide a secure means for building emergency funds and achieving short or long-term financial goals.

However, most HISAs in Canada are offered by banks and credit unions that operate entirely online.

Thus, it is easy for these financial organizations to provide HISAs because they don’t have a brick-and-mortar presence.

Hence, they transfer the savings to their customers in the form of higher interest rates.

What are the Features of a High-Interest Savings Account?

As mentioned previously, not all HISAs have the same offers, making it crucial to know where you’re depositing your money into.

Here are the five common features of the best high interest savings account: in Canada:

1. High-Interest Rate

The best HISAs have high interest rates compares to a regular savings account. This implies that you can earn more money on a HISA than in a regular savings account.

2. No Monthly Fees

With a HISA, you will not have to pay any monthly fees. The story is different with regular savings accounts that have several monthly such as maintenance and withdrawal fees.

3. Low Transaction Fees

Most HISAs charge low or zero fees for transactions and monthly fees. With this, you have the opportunity to earn more by spending less.

4. No Minimum Balance Requirement

With as little as $1, you can open a HISA. The no minimum balance requirement of HISA also allows you to save more and still earn a high interest rate.

5. Deposit Protection

With HISAs, you have the chance to earn high interest with additional protection. So should something unforeseen happen to your account, you will have peace of mind knowing your money is safe.

What is the Difference Between a High-Interest Savings Account and a Regular Savings Account?

From the above discussion of HISAs features, you can see that HISAs have several differences from a regular savings account.

Firstly, HISAs have high interest rates compared to the low-interest rate of regular savings account. This means that you can save more with them than with regular savings accounts.

Secondly, most HISAs don’t charge monthly fees such as maintenance fees. On the other hand, regular savings accounts charge monthly fees, which add up to the cost of saving your money.

Thirdly, HISAs are more flexible than regular savings accounts as you can withdraw them anytime you want. On the other hand, regular savings accounts have strict withdrawal rules.

However, HISAs often have limitations compared to regular savings accounts. This includes withdrawal, transfer, and minimum balance limitation.

Thus, you can open both a HISA and regular savings account to maximize your savings.

Who Should Have a High Interest Savings Account?

High-yield savings accounts are available to everyone looking for great rates on their savings.

This type of savings account is also ideal for individuals looking for an alternative to the high banking fees of a regular savings account.

From students, youths, business owners, seniors, public and private workers – anyone can benefit from HISA.

Why Do You Need a High-Interest Savings Account?

Here are the major benefits on why you need to open a high-yield savings account:

1. Build Wealth

Growing your money is essential. You want it to work for you while you sleep and achieve your dreams. A HISA can help you to achieve just that with high interest rates on your savings.

2. Save Costs

With zero monthly and transaction fees, you can convert the costs of your HISA to savings. This helps you to save more and achieve your financial goals fast.

3. Diversify Your Investment Portfolio

HISAs provide the opportunity to invest in different securities such as ETFs, stocks, mutual funds and GICs. This helps you accumulate more returns on your savings in the long run.

4. Easy Money Access

One of the crucial things that make HISAs popular is their flexibility. Unlike regular savings accounts, HISAs allow you to withdraw your money anytime you want without penalties. This is great for funding any emergency.

Best 25 High Interest Savings Account Canada

Finally, we’ve arrived at the panel of reviewing the best high interest savings account Canada.

Let’s dive in!

1. EQ Bank Savings Plus Account

This is a leading HISA in Canada as a result of its 1.25% interest rate.

What I also like about EQ Bank Savings Plus Account is its range of free perks on transfers and bill payments.

Furthermore, this high savings account has the features of a chequing account, making it more flexible than other HISAs.

Key Features

  • Interest Rate: 1.25%
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

2. EQ Bank Retirement Savings Plan

This account provides a low-cost and low-risk retirement savings account with a high interest rate of 1.25%

EQ Bank Retirement Savings Plan is ideal for those looking to save for their retirement without sacrificing their current standard of living.

Like other retirement accounts in Canada, EQ Bank Retirement Savings Plan is non-taxable until withdrawal.

Key Features

  • Interest Rate: 1.25%
  • Monthly Fees: $0
  • Automatic Contributions: Yes
  • Tax Benefits: Yes
  • Minimum Balance: None
  • CDIC Protection: Yes

3. EQ Bank Tax Free Savings Account

With a 1.25% interest rate, this is one of the best HISA in Canada.

What I like about this account is the combination of tax benefits and withdrawal flexibility with a high interest rate.

Depending on your contribution room, you can deposit as much to your EQ Bank TFSA account tax-free.

If you’ve never contributed to TFSA, you can deposit up to  $75,500 to your EQ Bank TFSA in 2021.

Read this comprehensive article to learn about how TFSA works.

Key Features

  • Interest Rate: 1.25%
  • Monthly Fees: $0
  • Withdrawal Fees: $0
  • Tax Benefit: Yes
  • Minimum Balance: None
  • CDIC Protection: Yes

4. Oaken Financial Oaken Savings Account

This is one of the best HISA in Canada that offers high-interest rates with zero minimum balance and monthly fees.

With this account, you don’t have to worry about losing your money because your deposit is insured by the Canadian Deposit Insurance Corporation (CDIC)

Furthermore, your interest rate on Oaken Savings Account is calculated every day and every month, giving you the flexibility of withdrawing your money at all times with no penalties.

Key Features

  • Interest Rate: 1.15%
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

5. CIBC Tax Advantage Savings Account

The Canadian Imperial Bank of Commerce (CIBC) Tax Advantage Savings Account is ideal for those looking for a tax-free savings account.

What I like about this account is its high interest (1%) with bonus interest for new balances or new deposits.

Furthermore, this account has no monthly fees but has a minimum investment amount of $25.

Key Features

  • Interest Rate: 0.1%
  • Monthly Fees: $0
  • Automatic Recurring Deposit: Yes
  • Tax Benefit: Yes
  • Minimum Investment: $25
  • CDIC Protection: No

6. CIBC eAdvantage Savings Account

This account is available to any Canadian who has reached the majority’s age in their province or territory.

Although the interest rate is low (0.05%), I like that CIBC eAdvantage Savings Account new users enjoy a 1.25% bonus.

However, you can make free transactions to your personal CIBC bank account with this account, but 5% charges apply for other transactions.

Key Features

  • Interest Rate:05%
  • Monthly Fees: $0
  • Transaction Fees: 5%
  • Minimum Balance: None
  • Overdraft Protection: Yes

7. CIBC RRSP Daily Interest Savings Account

This Canadian Imperial Bank of Commerce (CIBC) account gives you a daily high-interest rate and tax benefit on your retirement accounts.

With a 0.050% interest rate, tax-benefit and zero monthly fees, CIBC RRSP Daily Interest Savings Account makes a cost-effective HISA.

As a result, this account will help you maximize your retirement savings without spending much.

Key Features

  • Interest Rate:050%
  • Monthly Fees: $0
  • Transaction Fees: $0 (but $100 fees applies for transferring to another financial institution)
  • Tax Benefit: Yes
  • Minimum Balance: $25
  • CDIC Protection: Yes

8. Saven Financial High Interest Savings Account

Despite its new status, Save Financial High Interest Savings Account is not lagging in the list of the best HISAs in Canada.

This newly established online bank has a high-interest rate of 1.55% with no monthly fees, no transaction fees and no minimum balance.

With this composition, Saven Financial is heading towards dominating the existing online banks that offer HISAs in Canada.

Key Features

  • Interest Rate: 1.55%
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • FSRA Protection: Yes

9. Neo Financial High Interest Savings Account

With a 1.30% interest rate, Neo Financial High Interest Savings Account makes it to my list of the best HISA in Canada.

In addition to its high interest rate, this account has no minimum balance, no monthly fees and no transaction fees.

Thus, this HISA can be your vehicle for building short-term or long-term wealth.

Key Features

  • Interest Rate: 1.30%
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

For more information about this account, check out this Neo Financial review.

10. Scotiabank Momentum PLUS Savings Account

Scotiabank Momentum PLUS Savings Account is among Canadian high interest savings accounts.

This account has three different Interest rates. That’s a regular interest rate of 0.05%, the premium period interest rate of 0.15% to 0.45% and an ultimate package interest rate of 0.10%.

Additionally, Scotiabank Momentum PLUS Savings Account has $5 transaction fees for non self-service transfers.

Key Features

  • Regular Interest Rate: 05%
  • Monthly Fees: $0
  • Transaction Fees: $5 (for the non self-service transfers).
  • Minimum Balance: None
  • CDIC Protection: Yes

11. Scotiabank Savings Accelerator Account

This HISA helps you save automatically while earning high interest rates on your savings.

What I like about the Scotiabank Savings Accelerators is its flexibility in fitting in registered or non-registered plans.

Furthermore, this account has no fixed interest rate. How much you get depends on your deposit. But the more your deposit, the more your interest rate.

Key Features

  • Interest Rate: 100% (for $250,000 or more and 0.050% for $0 – $249,999).
  • Monthly Fees: $0
  • Transaction Fees: $5
  • Minimum Balance: None
  • CDIC Protection: Yes

12. Scotiabank Savings Accelerator Account (TFSA)

This account is designed to help you benefit from high interest rates and tax-free savings.

Like the Scotiabank Savings Accelerators, this account has no fixed interest rate.

Thus, you will earn 0.050% for $0 to $249,999 deposit, and 0.100% interest rate for $250,000 or more deposit.

Key Features

  • Interest Rate: 050% (for for $0 to $249,999) and 0.100% (for $250,000 or more).
  • Monthly Fees: $0
  • Transaction Fees: $05
  • Minimum Balance: None
  • CDIC Protection: Yes

13. Scotiabank Money Master Savings Account

With a low interest rate of 0.010%, I still find Scotiabank Money Master Savings Account worthy of mention in my list of best Canadian HISAs.

The reason is that this account has no monthly fees, no transaction fees and no minimum balance.

Furthermore, your deposit on this account is insured by the CDIC up to the applicable amount.

Key Features

  • Interest Rate: 010%
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

14. MAXA Financial RRSP Savings

If you’re looking for tax-benefit on your retirement savings, the MAXA Financial RRSP Savings could be what you need.

What I also like about this account is that it has no monthly fees, helping you save more.

Furthermore, this account has a pre-authorized contribution support for making recurring deposits online or by phone.

Key Features

  • Interest Rate: 1%
  • Monthly Fees: $0
  • Transaction Fees: Yes
  • Minimum Deposit: $500.00
  • Tax Benefit: Yes
  • Deposit Protection: Guarantee Corporation of Manitoba

15. MAXA Financial High Interest Savings Account

With 1%, MAXA Financial High Interest Savings Account deserves mention in every list of the best HISAs in Canada.

Furthermore, this account has no minimum balance and monthly fees, allowing you to save cost-effectively.

However, unlike other Canadian high-yield savings accounts, this account has transaction fees.

Key Features

  • Interest Rate: 1%
  • Monthly Fees: $0
  • Transaction Fees: Yes
  • Minimum Balance: None
  • Deposit Protection: Guarantee Corporation of Manitoba

16. MAXA Financial MAXA TFSA Savings

Maximize your savings with 1% high interest and tax benefit through the MAXA TFSA Savings account.

Like MAXA Financial High Interest Savings, this tax-advantaged account has no monthly fees.

So whether you are saving for short or long-term goals, the MAXA TFSA Savings account is worth checking out.

Key Features

  • Interest Rate: 1%
  • Monthly Fees: $0
  • Transaction Fees: Yes
  • Minimum Deposit: $500.00
  • Deposit Protection: Guarantee Corporation of Manitoba

17. National Bank High Interest Savings Account

The National Bank of Canada High Interest Savings Account is among the best HISAs in the country.

Although this account has a low-interest rate of 0.05% interest, it is still among the best because of its zero monthly fees, zero transaction fees, and zero minimum balance.

Additionally, this account allows you to make free limitless transfers to your National Bank personal bank account.

Key Features

  • Interest Rate: 05%
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

18. Bank of Montreal BMO TFSA Saving Account

Bank of Montreal BMO TFSA Saving Account is ideal for those looking for a high-yield account with tax benefits.

This account has both registered and unregistered TFSA accounts to meet your needs.

Thus, you can choose to have your money grow tax-free in a TFSA cash account or invest in TFSA investment accounts such as ETFs, GICs, stocks and mutual funds.

Key Features

  • Interest Rate: 1.05%
  • Monthly Fees: $0
  • Transaction Fees: $9.95 (for each trade)
  • Minimum Balance: None
  • CDIC Protection: Yes

19. TD Bank High Interest TFSA Savings Account

Get on top of your savings with TD Bank High Interest Savings TFSA Account.

This account gives you the flexibility of saving your money in a TFSA cash savings account or investment securities such as GICs.

With zero monthly fees and zero monthly balance, this high-yield TFSA savings account is a convenient vehicle for building wealth.

Key Features

  • Interest Rate: 0.050%
  • Monthly Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

20. TD Bank High Interest Savings Account

Like the TD Bank High Interest Savings Account, this account has no monthly fees and minimum balance.

However, a $0 to $4,999.99 deposit has no interest rate. You must deposit $5000.00 and above to earn its 0.050% interest.

Furthermore, this HISA has no transaction fee for a $25,000 monthly minimum balance, but a transaction fee of $5.00 applies if you don’t.

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

21. TD Bank Every Day Savings Account

Whether you are trying to achieve short or long-term goals, TD Bank Every Day Savings Account got you covered.

Despite its relatively low interest rate (0.010%), I find TD Bank Every Day Savings Account worthy of mention in the list of my best HISAs.

Why? Because of its zero monthly fees, zero transaction fees and zero minimum balance.

Furthermore, this account is ideal for those just starting to save or those looking for automated solutions to their savings.

Key Features

  • Interest Rate: 0.010%
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

22. TD Bank Youth Savings Account

Also known as Student Bank Account, TD Bank Youth Savings Account is designed for youth and students under the age of 19.

Although this hybrid chequing/savings account has a low-interest rate of 0.01%, it has no transaction fees, minimum balance, and monthly fees until the person turns 23.

Furthermore, this account gives users the flexibility of different ranges of accounts that suits their needs.

Key Features

  • Interest Rate: 0.01%
  • Monthly Fees: $0 (until age 23)
  • Transaction Fees: $0
  • Minimum Balance: None
  • Overdraft Protection: Yes

23. RBC Royal Bank High Interest eSavings

The RBC Royal Bank High Interest eSavings also deserves mention among the best HISAs in Canada.

What I like about this account are its zero monthly fees, zero transaction fees and zero minimum balance.

Furthermore, this account tailors customized service to users through its MyAdvisor.

The RBC Royal Bank High Interest eSavings current rate is 0.050%.

But if you open your first account by August 31, 2021, you will get 1% interest (for a $1,000,000 deposit) for the initial three months.

Also, you will get 1.5% interest when you deposit $1,000,000) within three months or registered for MyAdvisor.

Key Features

  • Interest Rate: 0.050%
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

24. RBC Royal Bank Leos Young Savers Account

This account is aimed at helping children and youth (0-12 years) in Canada save.

Thus, parents and guardians are free to initiate automatic money transfers to their children’s/wards account.

Furthermore, this account currently offers $25 for new users. This bonus ends November 1, 2021.

So to get started, all you need is to visit an RBC Royal Bank branch nearest to you.

Key Features

  • Interest Rate: 0.010%
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

25. RBC Royal Bank Day to Day Savings

You can also enjoy a high interest rate on every dollar you invested on RBC Royal Bank Day to Day Savings without worrying about monthly fees.

There are two things I like about this account. First, interest is calculated daily. Secondly, your interest rate is determined by your deposit.

Thus, you can earn a 0.05% interest rate when you deposit anything from $0.00 to $999.99 and a 0.010% rate for deposit $1,000.00 and above.

Key Features

  • Interest Rate: 0.05% (for $0.00 to $999.99 and 0.010% for $1,000.00).
  • Monthly Fees: $0
  • Transaction Fees: $0
  • Minimum Balance: None
  • CDIC Protection: Yes

How to Choose the Best High Interest Savings Account?

It can be confusing to decide which best high interest savings account to choose from the above review. This is likely because they are all best in different ways.

However, when choosing a HISA, your emphasis should be on your need needs.

Are you looking to save cash, build your investment portfolio or invest in a retirement account?

Thus, depending on your needs, you may find one of the above HISAs more suitable than others.

But for the sake of this review, here are the overall best high interest accounts in Canada for:

Verdict on the Best High Interest Savings Account

A high-yield savings account is your speedy vehicle to financial freedom, and it’s obvious to see why.

Besides the high interest rate, you can maximize your savings with the absence of monthly fees and transactions.

However, it can be tricky to choose the best HISA that suits your needs. But it doesn’t have to be challenging anymore.

By identifying the purpose of your savings, you will know whether to choose the best high interest for cash savings, TFSA savings or RRSP savings.

All the best!

FAQs on 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?

You can’t lose money in high yield savings account once there’s deposit protection. That’s why you need to invest only in a high-yield savings account that has 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 account that are available are tax-free savings account and retirement savings accounts.

These accounts have tax benefits that help you to maximize 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.

If you have more questions about the high interest savings accounts, let me know in the comment section.

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