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Editor’s Note: On July 24, the Bank of Canada reduced the overnight rate to 4.50%. This is the second time the Bank has cut rates in 2024. An overnight rate cut may dampen GIC and savings account interest rates. The next rate announcement will take place on September 4, 2024.
Savings accounts help your money grow, sometimes with tax advantages. The best savings accounts have annual percentage yields (APYs). The higher the APY, the more money you’ll earn over time.
To select the best savings accounts in Canada, NerdWallet examines over 180 currently-available high interest savings accounts (HISAs), tax-free savings accounts (TFSAs) and registered retirement savings plans (RRSPs) from over 40 financial institutions.
Motive Savvy Savings Account
Earn more for your money everyday! With an unbeatable standard interest rate of 4.10%* interest and no unnecessary fees, you can achieve your financial goals faster. Terms and conditions apply.
Best Savings Accounts in Canada from Our Partners
Bank Account |
Interest Rate |
Monthly Fee |
|
|---|---|---|---|
Simplii Financial™ High Interest Savings Account |
5.90%
Promotional rate
|
$0
|
|
Scotiabank MomentumPLUS Savings Account |
Up to 6.05%*
Promotional Rate
|
$0
|
|
Motive Savvy Savings Account |
4.10%
No minimum balance required
|
$0
|
The best HISAs in Canada
Scotiabank MomentumPLUS Savings Account
- The MomentumPLUS Savings Account offers a higher interest rate on long-term savings for multiple goals in one account.
- Founded in Halifax in 1832, Scotiabank is one of Canada’s oldest and largest banks, a more or less permanent member of the country’s Big Six financial institutions. Read our review of Scotiabank for more information.
- Earn a savings rate of up to 6.05%* for 3 months.
- Save for multiple goals in one account.
- No monthly account fees or minimum balance required.
- Earn even more interest when you open and fund a Premium Period(s).
- The longer you save, the higher your interest rate.
- Rates, fees and other information are effective as of March 12, 2024. Subject to change.
- Terms and Conditions Apply. Click ‘Apply Now’ for complete details.
Tangerine Savings Account
- Tangerine’s promotional interest rate will earn you a high rate of return for five months. Pair it with the virtual bank’s no-fee chequing account, credit card, registered accounts or a GIC to maximize your financial goals.
- Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.
- 0.60% regular interest rate.
- No monthly fee.
- Automated savings program available.
- Unlimited free self-serve transactions per month.
- Service fees are limited to a $45 charge for non-sufficient funds.
- No minimum balance.
- Immediate access to your money through withdrawals, transfers to linked accounts, and more.
- Eligible for CDIC deposit insurance.
Simplii Financial™ High Interest Savings Account
- Simplii’s no-fee HISA gives account holders access to CIBC ATMs in Canada.
- Simplii Financial is an online bank owned by CIBC that offers savings and chequing accounts, credit cards, mortgages, loans, lines of credit, registered plans, GICs, and mutual fund accounts. Read our review of Simplii Financial for more information.
- 0.40% to 5.50% interest rate depending on account balance.
- No monthly fee.
- Manage your money through online banking and a mobile app.
- Easily set up automatic deposits.
- HISA account holders can open a no-fee chequing account to access money from any CIBC ATM in Canada without a fee.
- No transaction or service fees.
- No minimum balance.
- Immediate access to your money through withdrawals, Interac e-Transfer, transfers to linked accounts, and more.
- Eligible for CDIC deposit insurance.
CIBC eAdvantage® Savings Account
- CIBC’s eAdvantage® Savings Account can earn a healthy regular interest rate of up to 1.80%, which can be boosted to 5.50% through bonus interest and Smart Interest, which rewards you for saving at least $200 per month.
- CIBC is a full-service multinational financial institution and one of the Big Six banks in Canada. Read our review for more details.
- Regular interest rate: 0.40% to 1.80% earned on all balances.
- Earn up to 5.50%.
- 0.50% Smart Interest when you save at least $200 a month (up to a balance limit of $200,000).
- 3.20% bonus interest rate for the first four months when you open your first account (up to a balance limit of $1,000,000).
- Set up automatic transfers with AutoSave so you can grow your savings without even thinking about it.
- Free online transfers between your accounts.
- No monthly fee.
- $5 fee for transactions, including debit purchases, CIBC withdrawals (including CIBC ATM), Interac e-Transfer transactions, cheques, pre-authorized payments, and bill payment.
- Bank when, where and how you want with CIBC Online Banking® and the award-winning CIBC Mobile Banking® App.
- Access to nearly 4,000 ATMs across Canada.
- Use your mobile device to deposit personal or business cheques.
- CIBC Smart Balance Alert™ gives you a heads-up when your account is short on funds. That gives you time to make a transfer and avoid a non-sufficient funds (NSF) fee and a declined payment.
- Eligible for CDIC deposit insurance.
- To be eligible, you must be a Canadian resident who is the age of majority in your province or territory. If you’re under the age of majority, apply by visiting a CIBC Banking Centre.
RBC High Interest eSavings Account
- RBC High Interest eSavings Account offers a competitive interest rate on your deposit with no minimum requirements with free instant e-transfers to your other accounts at any time.
- Royal Bank of Canada (RBC) is one of Canada’s Big Six banks providing banking, investment, and lending solutions to individuals and businesses since 1869. Read our review of RBC for more information.
- Earn high interest on every dollar.
- Free electronic self-service transfers 24/7 with no delay – Including ATM and unassisted telephone fund transfers, from this account to any other RBC Royal Bank personal deposit account in your name.
- Free access to RBC Online, Mobile, and Telephone Banking.
- No minimum deposit requirements.
- The ability to set up a regular, automatic savings plan by arranging pre-authorized transfers from a bank account to your savings account.
- Know what your money is up to with a digital service that can help capture all of your savings and investments in one place.
- Canada Deposit Insurance Corporation (CDIC) provides deposit insurance against the loss of eligible deposits in the event of failure.
KOHO Spending and Savings Account
- This hybrid chequing-savings account earns up to 5.00% interest on savings and up to 5.00% cash back on purchases depending on the subscription plan selected.
- KOHO is a virtual bank that also offers cash back prepaid Mastercards cards
- Interest Rate varies by selected subscription plan. Essential Plan: 5%, Extra Plan: 5%, Everything Plan: 5%.
- Monthly Fee varies by selected subscription plan. Essential Plan: $4, Extra Plan: $9, Everything Plan: $19.
- The account comes with the KOHO prepaid Mastercard that earns up to 5% instant cash back on spending (depending on the selected subscription plan).
- The mobile app comes with spending pattern analysis, budgeting, automated savings and a RoundUp! feature that helps you save money on every purchase.
- No minimum balance.
- Immediate access to your money through free withdrawals, e-Transfers, and more.
- Eligible for up to $100k CDIC deposit insurance.
The best TFSA HISAs in Canada
Tangerine Tax-Free Savings Account
- This flexible, no-fee TFSA comes with a generous promotional offer that will earn you cash and a high rate of return for five months.
- Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.
- 0.60% regular interest rate.
- No monthly fee.
- Automated savings program available.
- Manage your money by phone, through online banking and a mobile app.
- Other Tangerine TFSA investment options include Tax-Free GICs, available in 90-day to 5-year terms, and investment accounts and portfolios.
- Service fees are listed online.
- Deposits and withdrawals are free.
- $50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
- No minimum balance is required.
- Eligible for CDIC deposit insurance.
Manulife Bank Tax-Free Advantage Account
5.00%
N/A
$0
- The Tax-Free Advantage Account earns high interest on your cash and offers easy access to your money when you need it.
- Manulife Bank has provided Canadians with branchless banking since 1993. Services include chequing and savings, credit cards, mortgages, loans, and investment accounts.
- No monthly fee.
- Manage your money by phone, through online banking and a mobile app.
- Access money when you need it with no penalties for withdrawals. To withdraw, use an official cheque, transfer to another bank account, or transfer to another TFSA account of the same account holder.
- Other Manulife Bank TFSA investment options include Tax-Free Guaranteed Investment Certificates, available in one to five-year terms, and investment accounts, such as managed portfolios and mutual funds. RRSPs and RRIFs are also available.
- Deposits and withdrawals are free.
- No fee to transfer to another TFSA account of the same account holder.
- No minimum balance is required.
- Eligible for CDIC deposit insurance.
Motive Financial TFSA Savings Account
4.10%
N/A
$0
- Earn interest at a competitive rate on this no-fee and no-minimum balance high-interest TFSA.
- Motive Financial is an online division of Canadian Western Bank and offers chequing and savings accounts, registered plans and GICs.
- 4.10% variable interest rate. Interest is calculated on the daily closing balance at the applicable rate tier and paid on the last day of the month, for the period beginning on the last day of the previous month and ending on the second last day of the month.
- No monthly fee.
- Withdrawals can be deposited into a Motive Savings or Motive Chequing account, a no-fee chequing account that earns 0.15% interest.
- Manage your money by phone, through online banking and a mobile app.
- Other TFSA investment options include the Motive® TFSA GIC, available in one to 10-year terms.
- Service fees are listed online.
- Free TFSA withdrawals and deposits.
- $50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
- $50 fee to close the account within one year of opening.
- No minimum balance is required.
- Eligible for CDIC deposit insurance.
- Motive Financial products are not available to Québec residents.
Canadian Tire Tax Free® High Interest Savings Account
3.70%
N/A
$0
- This online-only high-interest TFSA features all the benefits of Canadian Tire’s ‘Money Magnet’ HISA, with tax-free advantages.
- Canadian Tire Bank (CTB) is a federally chartered virtual bank that operates the Triangle Rewards Program and offers credit cards, savings accounts, and GICs.
- 3.70% variable interest rate. Interest is calculated daily, based on the closing balance of the account, and paid monthly.
- No monthly fee.
- Automatic savings plan available.
- Manage your money by phone or through online banking.
- Other Canadian Tire TFSA investment options include Tax-Free GICs, available in one to five-year terms.
- Service fees are listed online.
- Deposits and withdrawals are free.
- $50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
- No minimum balance.
- Eligible for CDIC deposit insurance.
- This account is not available to Québec residents.
Steinbach Credit Union TFSA Variable Savings
3.65%
N/A
$0
- SCU’s TFSA Variable Savings offers a flexible way to save and earn tax-free interest for your short- or long-term goals.
- Steinbach Credit Union, or SCU is one of Manitoba’s largest credit unions offering personal and business solutions online, by phone and in person.
- Offers a competitive, variable interest rate.
- No introductory rate to expire after a few months — Steinbach Credit Union offers high-interest rates right from dollar one.
- Interest is calculated on your minimum monthly balance and paid annually on December 31st.
- Automate your contributions to your TFSA monthly so you can save without even thinking about it. Make sure you’re within your annual contribution limits.
- Deposits can be added to your savings at any time without paying a fee.
- All deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba.
Achieva Financial TFSA Savings Account
3.50%
N/A
$0
- This high-interest no-fee TFSA will help you save up for a TFSA GIC or a Qtrade Direct Investing online investment account, both offered through the virtual bank.
- Achieva Financial is an online division of Manitoba’s Cambrian Credit Union and offers savings accounts, GICS, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).
- 3.50% variable interest rate. Interest is calculated on the daily closing balance and added to the principal on the last day of each month.
- No monthly fee.
- To open this account, you must agree to become a member of Cambrian Credit Union Limited, which requires a $5 share. Your is considered an investment and is fully refundable should you decide to cancel your membership.
- Earn $1 per month when you choose electronic documents.
- Manage your money by phone, through online banking and a mobile app.
- Other Achieva TFSA investment options include TFSA GICS, available in one to five-year terms, and Qtrade Direct Investing online investment accounts.
- Service fees are listed online.
- Free deposits and one free cheque, direct transfer or pre-authorized payment every month.
- $15 fee to close the account within six months of opening.
- No minimum balance is required.
- Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
WealthONE Tax-Free Savings Account
3.50%
N/A
$0
- Use this no-fee TFSA to earn tax-free interest in an easy, flexible way.
- WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.
- No monthly fee.
- Automated savings program available. Manage your money by phone, through online banking and a mobile app.
- Other Wealth One TFSA investment options include guaranteed investment certificates, available in 6-month to 5-year terms, and investment accounts and portfolios through Smart Money Invest.
- Service fees are listed online.
- Deposits and withdrawals are free.
- $50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
- $100 fee to close your TFSA account.
- No minimum balance is required.
- Eligible for CDIC deposit insurance.
Outlook Financial TFSA High-Interest Savings Account
3.45%
N/A
$0
- This flexible high interest TFSA offers easy transfers between accounts via Outlook Financial mobile app or online banking.
- Outlook Financial is an online division of Assiniboine Credit Union and offers savings accounts, GICS, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).
- 3.45% variable interest rate. Interest is calculated daily and paid back monthly.
- No monthly fee.
- To open this account, you must agree to become a member of Assiniboine Credit Union membership, which requires a $5 share. Your share is considered an investment and is fully refundable should you decide to cancel your membership.
- Manage your money by phone or through online banking.
- Other TFSA investment options include guaranteed investment certificates, available in one to five-year terms. RRSPs and RRIFs are also available.
- Service fees are listed online.
- One free cheque, pre-authorized debit, or transfer per month. Deposits are free and unlimited.
- $50 fee to transfer your TFSA to another bank, transfers in are free.
- $10 fee to close the account.
- No minimum balance is required.
- Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
MAXA Financial TFSA Savings
3.45%
N/A
$0
- This TFSA Savings account offers competitive rates, the convenience of no minimum balance and added savings through zero monthly fee.
- MAXA Financial is an operating division of Westoba Credit Union Ltd. and offers a high-interest savings account, GICs, and TFSA, RRSP and RRIF products.
- Get one free withdrawal monthly. After that, there will be a $3 fee per withdrawal.
- Deposits are guaranteed 100% by Deposit Guarantee Corporation of Manitoba.
- No minimum balance is required.
- No monthly maintenance fee.
- Interest is calculated on the daily closing balance and paid monthly.
- MAXA MemberCard for ATM and Point-of-Sale transactions.
- Account information is available online or by phone.
- Contributions can be easily transferred from your MAXA High-Interest Savings account online or by phone.
- You can set up recurring transfers from your MAXA High-Interest Savings account online or by phone.
The best RRSP HISAs in Canada
Tangerine RSP Savings Account
- This flexible, no-fee RRSP comes with a generous promotional offer that will earn you cash and a high rate of return for five months.
- Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.
- No monthly fee.
- Automated savings program available.
- Manage your money by phone, through online banking and a mobile app.
- Other Tangerine RSP investment options include RSP GICs, available in 90-day to 5-year terms, and investment accounts and portfolios.
- Service fees are listed online.
- Deposits and withdrawals are free.
- $50 fee to transfer your RRSP to another bank (transferring another in is free).
- No minimum balance is required.
- Eligible for CDIC deposit insurance.
Steinbach Credit Union RRSP Variable Savings
- This RRSP variable savings account earns a healthy regular interest rate on your daily minimum balance while reducing your taxable income.
- Steinbach Credit Union, or SCU is one of Manitoba’s largest credit unions offering personal and business solutions online, by phone and in person.
- Offers a competitive, variable interest rate.
- No introductory rates that expire after a few months — Steinbach Credit Union offers high-interest rates right from dollar one.
- Interest is calculated on your minimum monthly balance and paid annually on December 31st.
- Manage your accounts on the go with free access to online banking and our mobile app anytime, anywhere.
- Automate your contributions by setting up a monthly preauthorized debit to your RRSP so you can save without even thinking about it.
- Deposits can be added to your savings at any time without paying a fee.
- All deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba.
Achieva Financial RRSP Savings Account
3.50%
N/A
$0
- This online-only high-interest RRSP features a competitive rate and the ability to set up spousal RRSPs.
- Achieva Financial is an online division of Manitoba’s Cambrian Credit Union and offers savings accounts, GICS, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).
- 3.50% variable interest rate. Interest is calculated on the daily closing balance and added to the principal on the last day of each month.
- No monthly fee.
- To open this account, you must agree to become a member of Cambrian Credit Union Limited, which requires a $5 share. Your share is considered an investment and is fully refundable should you decide to cancel your membership.
- Earn $1 per month when you choose electronic documents.
- Ability to set up recurring contributions.
- Manage your money by phone, through online banking and a mobile app.
- Other Achieva RRSP investment options include spousal RRSPs, RRSP GICS, available in one to five-year terms, and Qtrade Direct Investing online investment accounts.
- TFSAs, RRIFs, Locked-In Retirement Accounts (LIRAs) and Life Income Funds (LIFs) are also available.
- Service fees are listed online.
- $15 fee to close the account within six months of opening.
- No minimum balance is required.
- Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
WealthONE RRSP Savings Account
3.50%
N/A
$0
- This RRSP savings account features a competitive interest rate and comes with access to a digital investing service with professionally managed, low-cost investment portfolios.
- WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.
- No monthly fee.
- Automated savings program available.
- Manage your money by phone, through online banking and a mobile app.
- Other Wealth One RRSP investment options include spousal RRSPs, guaranteed investment certificates, available in 6-month to 5-year terms, and investment accounts and portfolios through Smart Money Invest.
- TFSAs and RRIFs are also available.
- Service fees are listed online.
- $50 fee to transfer your RRSP to another bank (transferring in another RRSP is free).
- $100 fee to close your RRSP account.
- No minimum balance is required.
- Eligible for CDIC deposit insurance.
MAXA Financial RRSP Savings
3.45%
N/A
$0
- This High-Interest Savings Account offers competitive rates, the convenience of no minimum balance and added savings through zero monthly fee.
- MAXA Financial is an operating division of Westoba Credit Union Ltd. and offers a high-interest savings account, GICs, and TFSA, RRSP and RRIF products.
- The High-Interest Savings Account offers exceptional rates with the convenience and flexibility to make meeting your financial goals easy.
- Deposits are guaranteed 100% by Deposit Guarantee Corporation of Manitoba.
- No minimum balance is required.
- No monthly maintenance fee.
- Interest is calculated on the daily closing balance and paid monthly.
- MAXA MemberCard for ATM and Point-of-Sale transactions.
- Account information is available online or by phone.
- Contributions can be easily transferred from your MAXA High-Interest Savings account online or by phone.
- You can set up recurring transfers from your MAXA High-Interest Savings account online or by phone.
Outlook Financial RRSP High-Interest Savings Account
3.45%
N/A
$0
- This easy-to-use high-interest RRSP savings account offers a competitive interest rate and flexible options for new savers.
- Outlook Financial is an online division of Assiniboine Credit Union and offers savings accounts, GICS, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).
- 3.45% variable interest rate. Interest is calculated daily and paid back monthly.
- No monthly fee.
- To open this account, you must agree to become a member of Assiniboine Credit Union membership, which requires a $5 share. Your share is considered an investment and is fully refundable should you decide to cancel your membership.
- Manage your money by phone or through online banking.
- Start saving to reach the $1,000 minimum needed to invest in an RRSP Fixed GIC, which may earn higher rates.
- Other Outlook Financial RRSP investment options include spousal RRSPs and guaranteed investment certificates, available in one to five-year terms.
- TFSAs and RRIFs are also available.
- Service fees are listed online.
- $50 fee to transfer your RRSP to another bank (transferring in another RRSP is free).
- $15 fee to close the account within three months of opening.
- No minimum balance is required.
- Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
Hubert Financial Happy Savings RRSP
3.40%
N/A
$0
- This high-interest, online-only RRSP account provides you with access to investment portfolios and term deposits, including one-year terms redeemable quarterly.
- Hubert Financial is the online division of Access Credit Union and offers a high-interest savings account, term deposits, registered plans, a credit card and VirtualWealth investing.
- Interest is calculated daily, paid monthly.
- No monthly fee.
- To open this account, you must become a member of Access Credit Union, which requires a $5 share. Your share is considered an investment and is fully refundable should you cancel your membership.
- Use this RRSP to save $1,000 and open a higher rate tax-free one-year term deposit that is redeemable quarterly.
- Manage your money by phone, through online banking and a mobile app.
- Other Hubert RRSP investment options include spousal RRSPs, RRSP term deposits, available in one-year quarterly redeemable terms to five-year non-redeemable terms, and VirtualWealth online investment accounts.
- TFSAs and RRIFs are also available.
- No transaction or service fees, except for wire transfers and a $25 fee for accounts that are inactive for six months with a balance under $1,000.
- No minimum balance is required.
- Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
- Hubert Financial is not available to Québec residents.
Motive Savvy Savings Account
Earn more for your money everyday! With an unbeatable standard interest rate of 4.10%* interest and no unnecessary fees, you can achieve your financial goals faster. Terms and conditions apply.
Our picks for best savings account interest rates
The best savings account interest rates for non-registered HISAs, TFSAs and RRSPs as of July 24, 2024, are:
Methodology
NerdWallet Canada selects the best savings accounts based on several criteria. Factors in our evaluation methodology include annual percentage yields, minimum balances, fees, digital experience, access to other services, and more. Both registered TFSAs, RRSPs and non-registered savings accounts that are available in more than one province are considered for this list.
Best Savings Accounts from the Big 6 Banks
Top options from Canada’s largest financial institutions.
| Bank | HISA | TFSA | RRSP |
|---|---|---|---|
| Bank of Montreal (BMO) | BMO Bank of Montreal Premium Rate Savings | BMO Tax-Free Savings Account (TFSA) | BMO Registered Retirement Savings Plan (RRSP) |
| Canadian Imperial Bank of Commerce (CIBC) | CIBC eAdvantage Savings Account | CIBC TFSA Tax Advantage Savings Account | CIBC RRSP Daily Interest Savings Account |
| National Bank of Canada | NBC HISA | NBC Cash Advantage Solution TFSA | NBC Cash Advantage Solution RRSP |
| Royal Bank of Canada | RBC High Interest eSavings Account | RBC Tax-Free Savings Account (TFSA) | RBC Registered Retirement Savings Plan (RRSP) |
| Scotiabank | Scotiabank MomentumPLUS: Ultimate Package for MomentumPLUS | Scotiabank Savings Accelerator Account TFSA | Scotiabank Savings Accelerator Account RRSP |
| TD Bank | TD High Interest Savings Account | TD Canada Trust High Interest TFSA Savings Account | TD RRSP Daily Interest Savings Account (DISA) |
Honourable mentions
Though they didn’t make it into our picks for the best overall savings account, the accounts below are also solid choices that can help you meet your savings goals.
Hybrid accounts combine competitive interest rates of savings accounts with the flexibility of chequing accounts.
If you’re comfortable managing your money digitally, consider these online-only accounts from virtual banks.
Non-registered savings from online banks
- Tangerine Savings Account
- Simplii Financial™ High Interest Savings Account
- KOHO Spending and Savings Account
- Motive Savvy Savings Account
- EQ Bank Personal Account
- Neo Money™ Account
- CI Direct Investing HISA
- Canadian Tire High Interest Savings® Account
High-interest TFSAs from online banks
- Tangerine Tax-Free Savings Account
- Manulife Bank Tax-Free Advantage Account
- Motive Financial TFSA Savings Account
- Canadian Tire Tax Free® High Interest Savings Account
- Achieva Financial TFSA Daily Interest Savings Account
- WealthONE Tax-Free Savings Account
- MAXA Financial TFSA High Interest Savings Account
- Outlook Financial TFSA High-Interest Savings Account
High-interest RRSPs from online banks
- Tangerine RSP Savings Account
- WealthONE RRSP Savings Account
- Achieva Financial RRSP Savings Account
- MAXA Financial RRSP Savings
- Outlook Financial RRSP High-Interest Savings Account
- Hubert Financial Happy Savings RRSP
Things to know about savings accounts
By Hannah Logan
What is a savings account?
A savings account is a common type of deposit bank account that earns interest on its balance.
Savings accounts can make it easier to achieve specific savings goals, such as a new car, a wedding, or an emergency fund. Since savings accounts earn interest, they help your money grow over time.
Types of savings accounts
There are a number of different types of savings accounts available to Canadians. Most are fairly simple, while others have features designed to meet specific needs. Options include:
- Basic savings accounts: Earn a modest interest rate.
- High-interest savings accounts (HISAs): Earn a higher rate of interest; may come with more restrictions.
- Registered savings accounts: Receive tax benefits with TFSAs and RRSPs, which are registered with the Canada Revenue Agency (CRA).
- Online savings accounts: Earn competitive interest rates with low or no fees at one of Canada’s virtual banks.
- Joint savings accounts: Accessible by more than one person, such as a married couple.
- Kids savings accounts: Available to children and teens; different eligibility requirements, features and fees than adult accounts.
- Senior savings accounts: Receive discounts and benefits for senior citizens.
- Foreign currency savings accounts: Save in U.S. dollars without exchanging currency.
- Business savings accounts: Separates business savings from personal savings.
How savings accounts work
When you deposit your money in a savings account at a bank or credit union, you’re lending funds to the institution. In exchange, the bank pays you interest. You typically have full access to your money stored in a savings account, whenever you need it.
Your savings account may have rules about how many withdrawals you can make each month, but it’s typically easy to transfer funds and make deposits as needed.
Savings accounts don’t tend to come with debit cards or cheques like you’d get with chequing accounts. If you have chequing and savings accounts at the same institution, you may be able to link them both to your debit card. Note that you may be charged a fee for using your debit card to withdraw money from your savings account.
How does interest work on a savings account?
Interest rates on savings accounts vary by the financial institution. Some banks or credit unions pay interest on the total amount in your account, while others only pay interest on amounts above a minimum required balance.
Typically, savings account interest is compounded, which means you can earn interest on your interest, not just on the amount you originally deposited. Read the terms and conditions of the account carefully to see whether the interest is compounded annually, monthly or daily. The more frequently your account compounds interest, the more your money will grow.
How to choose a savings account
Savings accounts are offered by many different banking institutions across Canada, which include Big Six banks, traditional banks and credit unions as well as online banks.
Each financial institution provides unique banking and account features. Make sure you take the time to shop around to find the best option to suit your needs. Here are some things to consider:
Interest rate
How much interest will you earn on the money in your savings account? Many banks offer promotional interest rates that may seem enticing at first, but drop down to a much lower rate after a few months. Depending on your savings goals, this type of introductory interest rate might work for you.
However, it’s often better to look at the best regular interest rate instead of solely focusing on the promotional rates. This way you can best anticipate the annual percentage yield (APY), which shows how much interest you will earn over a year.
Minimum balance
Some savings accounts in Canada require that you keep a minimum balance, such as $1,000, in your account at all times if you want to earn interest. If you can be sure you will always have that minimum amount in place, that’s fine.
Though, it might be a better idea to look for an account with no minimum requirements for peace of mind that you can always earn interest no matter your balance.
Fees
Most financial institutions in Canada do not charge monthly fees for savings accounts, but there might be fees for certain types of transactions or a limited number of free transactions you get per month. Pay attention to the fine print and check how many monthly withdrawals you’re allowed, whether you can make free e-transfers, and if there are other service fees to note.
CDIC Insurance
Many Canadian financial institutions are covered by a provincial or federal deposit insurer, such as the Canada Deposit Insurance Corporation (CDIC). The insurance protects your money — up to $100,000 per type of account — in case the bank fails. To be sure, check the financial institution’s website to see if it has deposit insurance protection before you apply for a savings account.
Convenience
You’ll want to make sure it is easy to withdraw your money when you need it. Consider your banking preferences and choose a savings account that’s convenient for you. For example, you may choose the RBC savings account if you prefer a big bank that has a large branch network to facilitate your in-person banking needs.
In many cases, people prefer to have their savings and chequing accounts at the same financial institution. If you already have a chequing account at a particular bank or credit union, it might be easier to open a savings account there, too. Plus, it will be convenient to move money between the accounts.
When considering an online-only savings account, make sure you understand how your money can be accessed. Can you use a debit card at an ATM or will you need to transfer the funds to a chequing account with another bank? Also, evaluate whether the digital experience is suitable for your needs. Is there a mobile app? Is the online banking interface easy to use? Can you call a customer service representative for questions?
How to open a savings account
Opening a savings account is generally a straightforward process and can be done in person or online depending on your financial institution. The application should only take a few minutes, but you will need to meet a few requirements and share some personal information. You can find a list of these requirements on the bank’s website or contact them to ask about this option.
Most Canadian banks require you to be a Canadian resident with a permanent address in Canada. However, some financial institutions will allow you to open a bank account as a non-resident.
You’ll also need to be the age of majority in your home province or territory. You will have to show an official government ID and provide personal information, including your:
- Social Insurance Number (SIN).
- Address and phone number.
- Date of birth.
- Email address, if you plan to use online banking.
Children and younger teens can open youth savings accounts, such as the CIBC Youth Account with a parent or legal guardian.
When to use a savings account
A savings account is a great tool to help you reach your financial goals. Basic savings accounts give you easy access to your money and typically have fewer rules and no limits on deposits.
In fact, you could choose to have more than one savings account if you’re saving towards multiple goals at the same time and want to track your progress separately. Some experts recommend using a savings account to save for something you want to buy in about three years or less, such as:
- A vacation.
- Next year’s taxes.
- A wedding.
- Home renovations.
- A new car.
- An emergency fund.
For longer-term savings goals, such as retirement planning or a down payment on a house, a basic savings account might not be the most efficient choice. That’s because interest rates are typically quite low, so you won’t earn as much as you could with other options, such as RRSPs, HISAs or RRSP guaranteed investment certificates (GICs). And you’ll pay taxes on the interest you earn in a non-registered savings account.
It’s also not generally a good idea to use a savings account for day-to-day transactions, since many savings accounts limit the number of transactions you can make before paying fees. Instead, use your chequing account for daily banking needs.
Are savings accounts taxable in Canada?
Yes, you will have to pay income tax on any interest you earn in your savings account. Every year, your financial institution will send you a T5 slip that shows how much interest you earned. You’ll claim this interest income along with all other personal income on your tax return.
You won’t pay taxes on the interest you earn in a tax-free savings account (TFSA), which is a registered savings account that can hold both investments and cash deposits. However, these accounts come with strict contribution and withdrawal rules and they aren’t a replacement for a basic savings account.
Alternatives to basic savings accounts
A savings account is a great option for most people, but it may not be the best type of bank account for all your needs. If you want to save money for less immediate financial goals, consider an option that earns more interest.
Alternatives to basic savings accounts include:
- Chequing accounts.
- RRSPs.
- TFSAs.
- High-interest savings account (HISAs).
- Hybrid or online bank accounts.
- Guaranteed investment certificates (GICs).
- Market-linked investments options, such as bonds, exchange-traded funds (ETFs), market-linked GICs and mutual funds.
Fortunately, you don’t have to pick just one type of account. You can choose any of these accounts to help you reach your financial goals. It’s all about finding the right combination of bank accounts for your needs.
» Ready for a new bank? Here’s how to switch to a new bank or credit union
Frequently asked questions about savings accounts in Canada
Yes, your savings account is as secure as any other type of bank account. Many Canadian banks and credit unions are covered by federal or provincial deposit insurers, such as the Canada Deposit Insurance Corporation (CDIC). This insurance protects your money — up to $100,000 per type of account — in case the bank fails. However, it’s also up to you to be cautious and protect your banking and personal information to avoid identity theft.
The Canadian banks that have the best savings account interest rates as of July 24, 2024, are:
Scotiabank, the Scotiabank MomentumPLUS Savings Account rate: Up to 6.05%
Tangerine Bank, the Tangerine Tax-Free Savings Account rate: 6.00%*
Tangerine Bank, the Tangerine RSP Savings Account: 6.00%*
*Special rates
The best savings account for you will depend on your banking preference, savings goals and other account features. Check out our picks for the best high-interest savings accounts (HISAs), tax-free savings accounts (TFSAs) and registered retirement savings plans (RRSPs) above to choose the best savings account for your needs.
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