High-Interest Savings Accounts in Canada: How to Pick One

Big-bank savings accounts often pay very little. Online banks and their subsidiaries usually pay more on the same money, with the same deposit insurance. Here’s how to compare them without getting caught by a promo rate.

1. Regular rate vs. promotional rate

Many accounts advertise a promotional rate for the first few months, on new money only. After that, you get the regular rate. Compare regular rates first: that’s what you’ll earn most of the time.

2. Make sure it’s covered by deposit insurance

The Canada Deposit Insurance Corporation (CDIC) covers eligible deposits at member institutions up to $100,000 per insured category, per institution. Savings in your name, in a TFSA, in an RRSP and in an FHSA are each a separate category, so the same person can be covered for more than $100,000 at one bank.

Credit unions are covered by their provincial deposit insurer instead, and limits vary by province.

Use the CDIC member list to check the institution.

3. Check how money moves

• How long do transfers to and from your main bank take?
• Are there limits or fees on withdrawals?
• Does it include a chequing account and Interac e-Transfers, or only savings?

4. Use it inside a TFSA when you can

Interest in a regular savings account is taxed as income every year. The same account held inside a TFSA earns tax-free. Most online banks offer TFSA savings accounts. See TFSA vs RRSP vs FHSA.

Banks worth comparing

We don't list rates here because they change often. Check each bank's current rate and promo terms on its own site.

Savings account or GIC?

A GIC locks your money for a fixed term (for example 1 to 5 years) at a guaranteed rate. It’s usually higher than a savings account, but you can’t withdraw early from a non-redeemable GIC. GICs at CDIC members are covered the same way. Keep your emergency fund in savings, and consider GICs for money with a fixed date.