From holidays to rainy days, a high-interest savings account is one of the most reliable ways to prepare for whatever your finances demand next. With modest deposit requirements and competitive rates, these accounts steadily grow your money over time. Plenty of Canadian providers offer them, but they are far from equal, and knowing which to choose is what lets you make the most of your savings.
What are high-interest savings accounts?
As the name suggests, high-interest savings accounts pay noticeably better rates than standard savings accounts. They're designed as longer-term homes for your money rather than for everyday spending.
That focus is reflected in their fees, which can be higher than other account types. Some high-interest accounts waive transfer charges, but providers usually make up the difference elsewhere, which is why it pays to compare carefully. You can open one at virtually any bank or credit union, and you don't have to use the institution you already bank with.
How to find the right account
When you're hunting for the best high-interest savings account, your own needs and preferences will steer most of the decision. Even so, a few factors matter for everyone. Look for accounts that are:
- Protected by CDIC (or provincial credit-union insurance)
- Offered by reputable, well-established institutions
- Low on fees, or flexible about them
- Backed by strong everyday interest rates
Online-only providers often lead on rates and fees because they don't carry the cost of physical branches. Keep an eye out for useful extras such as mobile banking and bill payments, and approach flashy promotional or teaser rates with a healthy dose of caution, since they rarely last.
Leading high-interest savings providers
As noted, no single account in Canada towers above all the rest; the best choice depends on your priorities. You can narrow the field, though, by starting with the country's leading providers. Tangerine and EQ Bank are consistently popular picks, the latter often standing out for having no monthly fees and free Interac e-transfers. Rates move constantly, so always confirm the current numbers before you commit.
Other well-regarded options worth comparing include:
- MAXA Financial – High Interest Savings Account
- Oaken Financial – Oaken Savings Account
- Wealthsimple – Wealthsimple Cash
- CIBC – eAdvantage Savings Account
- Scotiabank – MomentumPLUS Savings Account
Alternative savings accounts
Depending on your circumstances, another type of account may serve you better. Some providers offer senior accounts for clients aged 60 and over, often with lower transaction fees and deposit requirements. Youth savings accounts are ideal for children learning the basics of banking and saving.
There are also registered options such as the Tax-Free Savings Account (TFSA), which shelters your earnings from tax. These typically pay lower interest, but the tax advantage can more than offset that over time.
Conclusion
Take the time to weigh your options, compare current rates and fees, and match an account to your goals. Do that, and you'll soon be watching your savings climb to new heights.