Best High-Interest Savings Accounts in Canada

Maintaining a cash cushion is a key component of good financial management. On the one hand, cash liquidity will protect you against unexpected emergencies. On the other hand, it can help you take advantage of spur-of-the-moment investing opportunities. That said, if you’ve got your cash buffer in an account earning 1.00% interest, you’re doing your money a disservice. With an interest rate that low, your money is losing value due to inflation.

Fortunately, you have options. In this WealthRocket roundup, we’ll provide the best high-interest savings accounts in Canada that can help you save your money much more effectively.

The Tangerine Bank Savings Account takes the lead for its promotional interest rate, delivering a 6.00% rate for new clients. This account stands out in the marketplace for its consumer-centric approach, offering a fee-free structure that’s as transparent as it is rewarding. Without the burden of service charges or minimum balance requirements, it’s a premier choice for savers who expect their money to work hard for them.

Tangerine’s commitment to straightforward banking is evident not just in its lack of fees, but also in the clarity of its offerings. Customers only get a base interest rate of 0.80%, but the promotional rate is incentive enough to open an account, providing an unparalleled opportunity to bolster savings quickly and efficiently.

In the realm of high-interest savings accounts, Tangerine Bank stands out by eliminating common banking nuisances. It’s a clear winner for those who want to grow their savings with an institution that provides a straightforward and cost-effective banking experience. If you’re drawn to high yields without the complication of hidden charges, the Tangerine Bank Savings Account promises a refreshing approach to maximizing your financial growth.

The BMO Savings Amplifier Account offers an interest rate of 1.90% — a figure that outshines its counterparts in Canada’s big bank offerings. This competitive edge, coupled with the absence of monthly fees and minimum balance requirements, positions it as the premier choice for savers who favour the reliability and accessibility of a traditional bank with the benefit of a high-yield return on their savings.

BMO’s expansive network of branches across Canada fortifies its appeal, offering a tangible sense of security and personalized service. The in-person branch experience, valued by many Canadians, is further enhanced by the Savings Amplifier Account’s performance, combining the convenience of widespread physical accessibility with the financial advantage of a leading interest rate. It’s an optimal mix for those who prefer in-person banking without sacrificing the growth potential of their savings.

Ultimately, the BMO Savings Amplifier Account delivers a top-tier interest rate among the large banks and the practicality of brick-and-mortar service. This account is tailor-made for savers seeking to maximize their earnings while enjoying the confidence that comes with easy access to in-person support, ensuring their banking needs are met with a blend of traditional service and exceptional value.

EQ Bank’s Savings Plus Account stands out for delivering consistently superior interest rates without resorting to short-lived promotions. Offering a solid 3.00% yield — a sum of 2.50% base rate bolstered by an additional 0.50% for users who manage direct deposits or set up recurring debits — EQ Bank offers long-term, steady value for its customers.

This commitment to high returns has propelled EQ Bank to the top of Forbes’ list as the best bank in Canada in 2023 for the third year running. This repeated distinction is a testament to EQ Bank’s reliability and excellence, ensuring that clients are partnering with an institution dedicated to their financial success.

As part of Equitable Bank, Canada’s Challenger Bank™, EQ Bank shares in a legacy of innovation and stands as the nation’s 7th largest bank by assets. This account perfectly marries the practicality of a chequing account with the lucrative nature of a savings account, while also discarding typical banking fees. It encapsulates EQ Bank’s philosophy: banking that is inclusive, efficient, and geared towards enhancing customers’ financial prosperity. With the solid foundation of Equitable Bank, customers of EQ Bank enjoy not only market-leading interest rates but also the benefits of stability, convenience, and dependability.

The Motive Savvy Savings® Account distinguishes itself with a standout 4.100% interest rate, making it a prime choice for savers focused on growing their funds steadily over time. However, it’s worth noting that this account is designed more for the saver who intends to deposit funds and let them accumulate interest rather than for active daily use.

With only two free transactions permitted each month, it’s clear that the account is not intended for frequent access or as a transactional hub. Additional transactions incur a $5.00 fee, so active account management could lower the value gained from the high-interest rate.

With no monthly maintenance fees and the inclusion of unlimited transfers between Motive Bank accounts, savers can confidently use this account as a secure vault for their long-term savings goals. While the limited transaction allowance might be seen as restrictive, it reinforces the account’s purpose as a dedicated space for your savings to flourish, largely untouched and unbothered by frequent withdrawals or payments.

Wealthsimple Cash takes the cake for those who want more from their money with no strings attached. It offers a competitive 4% interest rate, climbing to 4.5% and 5% for Premium and Generation clients, respectively. This tiered interest model incentivizes customers to grow with Wealthsimple, rewarding increased investment with the company.

What sets Wealthsimple Cash apart is its hybrid nature — it operates like a chequing account but with the high-interest benefits of a savings account. This modern financial product eliminates common fees such as monthly fees, overdraft penalties, and foreign exchange fees, promoting a cost-effective and flexible banking experience.

The unique selling point of Wealthsimple Cash is the seamless integration of spending and investment. With 1% cash back rewards on spending that can be automatically reinvested in stocks, ETFs, or crypto, it encourages a continuous investment cycle. Additionally, the extension of CDIC coverage up to $300,000 is a standout feature, ensuring a high level of deposit protection.

Whether it’s getting paid early through direct deposit, managing everyday spending, or ensuring funds are always earning interest or being invested, Wealthsimple Cash is a prime choice for the financially savvy individual who values simplicity, innovation, and growth.

Unlike a TFSA, the interest you earn in a high-interest savings account is taxable. Any profits you make within a RRSP, however, are taxable only when money is withdrawn from the account. Before tax season, your financial institution will issue the necessary documents to claim your earned interest on your taxes.

There are also alternatives to a HISA that you can hold within a TFSA or RRSP. For example, holding an ETF that can maximize your savings, like CASH.TO, in your TFSA or RRSP portfolio can help you reduce investment risk while benefiting from non-taxable earnings.