Best High-Interest Savings Accounts in Canada in 2022
High-interest savings accounts, or HISAs, pay interest rates typically ranging from around 1-3%. We’ve reviewed the high-interest savings accounts offered by Canada’s major banks as well as smaller, virtual banks and have pared the options down to the accounts offering the very best rates and terms.
In This Article:
Best Canadian High-Interest Savings Accounts
|Bank Account||Base Interest Rate|
|EQ Bank's Savings Plus Account||2.50%*|
|KOHO||Up to 1.50%|
|Scotia Momentum PLUS Savings Account||1.35%|
If you are looking for a HISA with the best rates, then Neo Financial‘s Saving Account is the clear winner. Its current interest rate of 2.25% is the highest in Canada right now. Plus, with no annual or monthly fees or minimum balance requirements, it’s very beginner-friendly. You also get unlimited free transactions so you’re not getting dinged with fees just for moving money around. Neo-to-Neo deposits are still in the works, and for now you can’t deposit mobile cheques. But earning 2.25% with this flexible account is the main perk.
- Welcome Offer: Sign up today using our link and get a $5 bonus!
- Fees: none
- Minimum Deposits: none
- Interest Rate: 2.25%
- Additional Perks: Free Interact e-Transfers® and bill payments
Neo Money is provided by Concentra Bank.
Neo Money Interest Rate is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
EQ Bank Savings Plus Account
Not far behind is EQ Bank’s Savings Plus Account, with a very close-to-the-top-spot 2.50%* interest rate. And as a free bank account with no monthly fees and no charge for Interac e-Transfers®, electronic funds transfers, bill payments, and EQ-EQ transfers, you’ve got a solid HISA that really allows you to focus on saving your money. There are no monthly minimums with the Savings Plus account, however, keep in mind that there is a maximum balance of $200,000.
- Fees: none
- Minimum Deposits: none
- Interest Rate: 2.50%*
- Additional Perks: Free Interact e-Transfers®, bill payments, EQ-EQ transfers, and electronic funds transfers
* Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
With a standard KOHO account, you can earn up to 5% cash back at partnered merchants. You can earn saving interests on your entire KOHO account balance, up to 1.50% without a minimum deposit requirement. That interest rate depends on if you stick with the no-fee KOHO Easy version or choose one of the paid (Essential or Premium) versions. KOHO works as more of a hybrid account, giving you access to your funds whenever you need them.
Qualifying is pretty straightforward. You’ll need to go through the steps to first open a standard KOHO account, and provide your social insurance number, you can add the earning on savings as well.
- Current promotion: Sign up and get a $20 instant cash bonus (once you load your account and make your no minimum first purchase within 30 days) right to your KOHO account with GREEDYRATES referral code.
- Minimum balance: none
Who Should Sign Up?
If you’re already using KOHO, adding this option is a no-brainer. For those who aren’t KOHO clients yet, this presents a good option for an additional bank account, where you can simultaneously earn cash back and interest on your balance, all without any fees.
Scotiabank MomentumPLUS Savings Account
Those who want the face-to-face accessibility of a traditional bank, and are willing to lock their money away for long periods of time in exchange for high interest rates, should consider applying for Scotia’s Momentum PLUS Savings Account. The account has a basic interest rate of 1.50%, which in and of itself isn’t particularly impressive. But what makes it appealing to savers is the bonus interest that you can earn. Bonus interest (which Scotia refers to as ‘Premium Period Interest’) is payable when you leave your savings in the account without making any withdrawals for a designated period of time. You can earn the maximum Premium Period Interest—up to 1.10% extra—by refraining from withdrawals for 360 days. Deposits made by those who sign up for the Scotiabank Ultimate Package are eligible for an added 0.10% interest rate boost on top of that. Plus, for a limited time, Bonus Interest is calculated daily at the Bonus Interest Rate of 1.80% for 150 days (5 months) on your first MomentumPLUS Savings Account opened between October 6th 2022 and March 31st, 2023.
You also won’t be charged any monthly fees, and self-service transfers to other Scotiabank Savings and Chequing accounts are free and unlimited.
- Regular interest rate: 1.50%
- Maximum interest rate: Earn up to 4.50% on your MomentumPLUS Savings Account for 5 months1 with the Scotiabank Ultimate Package (Regular Interest Rate + Premium Period Interest Rate + Ultimate Interest Rate Boost + Welcome Bonus Interest Rate Offer)
- Minimum balance: none
1 Conditions apply. Actual interest rate will vary based on the savings period (the Premium Period) that applies. Visit scotiabank.com/mpsa to learn more.
Additional terms apply. See https://www.scotiabank.com/ca/en/personal/bank-accounts/savings-accounts/momentum-plus-savings-account.html/ for full details, including a description of how Bonus Interest is calculated.
How Much Can You Save?
Want to know how much you can save with one of the above accounts? Use the savings calculator below to find out how these interest rates will compound over time with whatever amount you can afford to save each month. Or start with the end goal you have in mind and find out how much you need to save on a monthly basis to get there. Learn more about the ins and outs of the calculator by reading this brief article.
High-Interest Savings Accounts vs. Regular Savings Accounts
The primary distinguishing feature between high-interest and regular savings accounts is the interest rate. As you can guess from the name, HISAs offer a much higher interest rate than traditional savings accounts. A competitive HISA in Canada should provide an interest rate around 1.5%+; regular savings accounts will offer interest rates below that.
Other distinguishing features of HISAs vs. regular savings accounts:
- While some brick and mortar banks offer HISAs, the best rates are usually found at virtual (online-only) banks.
- There are usually limits to how many monthly withdrawals you can make from a HISA.
- Many HISAs only permit electronic funds transfers, Interac transfers, and other digital transfers. You’ll usually pay a fee to make a withdrawal at an ABM or ATM.
How to Choose a High-Interest Savings Account
With interest rates ranging from 0.05% to 3.00% 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 in order to avail of the account’s maximum interest rate?
Pros and Cons of High-Interest Savings Accounts
|Consistently high interest rates||The best HISAs are online-only, which restricts the ways that you can make deposits and withdrawals|
|Relatively few/low fees compared to standard savings accounts||Some types of transfers and transactions do come with high fees|
|Reliable returns from interest||Generally lower returns than investment vehicles|
|Easier to access/more liquid than invested funds||Funds are not as liquid as a chequing account|
If you have no particular goal in mind but would like to know about how much you can expect to save if you make consistent deposits over time, the above linked calculator can estimate that as well.
You can learn more about Tax-Free Savings Accounts by reading our complete TFSA guide: https://www.greedyrates.ca/blog/a-guide-to-the-tfsa/