Best High-Interest Savings Account in Canada
Everybody likes to get extra money without having to work for it. That’s what makes high-interest savings accounts so appealing. As the name suggests, high-interest savings accounts pay more interest than regular savings accounts. Of course, some accounts offer higher interest rates than others, and different accounts have different fees and features. We’ve reviewed the accounts offered by Canada’s major banks so that we can share the best high-interest savings accounts in Canada with you.
Summary of Best High-Interest Savings Accounts in Canada in 2018
|High Interest Savings Accounts||Interest Rates||Minimum Balance||Extra Fees||Apply for Card|
|2.5% for new clients, regular rate 1.1%||$0||$0||Read review|
|0.05% to 1.15%||$0||$5 for external transfers and in-person transactions||Read review|
|0.9%||$10,000||$5 for every in-person or non-TD transaction||Read review|
|0.9%||$0||$1 to $5 for other transactions||Read review|
|0.9%||$5,000||$1.50 to $5 on other transactions||Read review|
|0.2% to 1.4%||$0||$5 for every additional transaction||Read review|
|2.4%||$0||$1.50 for additional Interac transfers||Read review|
How to Choose a High-Interest Savings Account
With interest rates ranging from 0.05% to 2.5% in high-interest accounts, it’s vital to shop around and get the best rate you can. But what other factors should you consider when trying to identify the high-interest savings account in Canada that best suits you? Consider the following questions:
- How many free transactions do you get per month?
- Do you need to have an existing chequing or savings account with the bank in order to qualify for the high-interest account?
- How much are extra fees for transfers, statements, etc.?
- What is the regular interest rate after any promotional offer ends?
- How long are you required to leave your money in the account without moving it?
We chose the best high-interest savings accounts in Canada from each of the seven leading banks in the country. Interested in one of the accounts listed in the above table? Check out its section below for more details.
Best Canadian High-Interest Savings Accounts 2018
Tangerine High-Interest Savings Account: Tangerine Savings Account
Tangerine’s ‘regular’ savings account also qualifies as a high-interest account, and stands out for its flexibility and lack of fees. Currently, Tangerine is offering new clients a special interest rate of 2.5% for the first 6 months after opening an account, after which interest rates return to 1.1%, which is still high for such a flexible account. You can withdraw or move your money whenever you’d like, there’s no minimum balance or monthly fee, and transactions and internal transfers are free. You will be charged at least $1 for other transfers.
Tangerine also offers a free Automatic Savings Program (ASP), which transfers money into your savings account from your Tangerine checking account at regular intervals. You set the amounts and the intervals, and then you can leave it to save effortlessly.
Scotiabank High-Interest Savings Account: Savings Accelerator
The Scotiabank Savings Accelerator pays an interest rate of 1.15% on your entire balance if it’s over $250,000, which is impressive for an instant access savings account. Even if your balance is less than this, the rate of 1.05% paid on balances from $5,000 to $249,999 is still good. It’s not, however, the best option for smaller balances, since you’ll only earn 0.05% on amounts under $5,000.
You won’t be charged any monthly fee, there are unlimited free transfers to other Scotiabank accounts, and you can open this account through a tax-free savings plan. On the down side, every transaction to a non-Scotiabank account or through a teller costs $5.
TD High-Interest Savings Account: ePremium Savings Account
At 0.9%, TD’s best savings account doesn’t offer very high interest rates compared to other banks, but it does make it easy to save and to access your savings. There are no monthly fees, you’ll get free online transfers to other TD accounts, and you can set up Automated Savings to have a fixed amount transferred to your ePremium savings account at whatever intervals you choose. However, the minimum balance is $10,000, and you’ll pay a $5 transaction fee for external or in-person transactions.
RBC High-Interest Savings Account: RBC High Interest eSavings
Earn a simple 0.9% interest on every dollar you deposit, which is reasonable for low balances and an instant-access account. There’s no monthly fee, minimum balance, or minimum withdrawals period. You also get free unlimited online or telephone transfers to any other RBC account, and one free ATM withdrawal per month. Other transactions cost between $1 and $5 each time. Although there are higher interest rates out there, the low fees make this worthwhile for low balances.
CIBC High-Interest Savings Account: eAdvantage® Savings Account
The highest interest rate you’ll get is the flat 0.9% rate on balances over $5,000, which is at least a lower minimum balance than TD’s best savings account. On the plus side, you won’t pay any monthly fees, most transfers to other CIBC accounts are free, and it’s one of the few savings accounts to offer free receipt of Interac transfers. You’ll pay between $1.50 and $5 for other transactions, though.
BMO High-Interest Savings Account: Savings Builder Account
BMO’s Savings Builder Account has a unique type of bonus rate. Although the base interest rate is a very low 0.2%, you’ll get a bonus 1.2% interest for every month that you save at least $200, making a total 1.4% rate with no minimum balance. There is a maximum balance of $250,000.
You’ll only get one free transfer from your account per month, and you’ll have to pay $5 for every additional transfer or withdrawal. However, for regular savers who are starting with a low balance, it’s a very attractive rate.
EQ Bank High-Interest Savings Account: EQ Bank Savings Plus Account
With a standard interest rate of 2.3%, EQ’s Savings Plus account is head and shoulders above most other high-interest savings accounts in Canada. There’s no minimum balance, although there is a maximum balance of $100,000.
EQ is unusual in offering five free Interac transfers each month, as well as unlimited free transfers to other EQ accounts, free EFT transfers, and bill payments. You’ll pay $1.50 for every additional Interac transfer. There’s no monthly fee, making EQ’s Savings Plus account one of the highest-earning savings accounts around.
Comparison of High Interest Savings Accounts by Features
|Interest rates||2.5% for new clients, regular rate 1.1%||0.05% to 1.15%||0.9%||0.9%||0.9%||0.2% to 1.4%||2.4%|
|Free monthly transactions||Unlimited free internal transfers and transactions. Unlimited Interac transfers for a fee||Unlimited free self-service internal transfers||Unlimited online transfers to TD accounts||Unlimited internal online or telephone transfers. 1 free ATM withdrawal per month||Unlimited online transfers to other CIBC accounts||1 free transfer||Unlimited EFT transfers, bill payments and transfers to other EQ accounts. 5 free Interac transfers|
|Minimum withdrawal periods||No minimum||None||None||None||None||None||None|
|Extra fees||None||$5 for external transfers and in-person transactions||$5 for every in-person or non-TD transaction||$1 to $5 for other transactions||$1.50 to $5 on other transactions||$5 for every additional transaction||$1.50 for additional Interac transfers|