In this article, let us take a look at the Top 5 High Interest Savings Account in Canada (2020.

While it is clear that keeping your money in a savings account cannot be categorized as a form of investment, people love their money to accrue interest over time, no matter how little, even when the money is just sitting in the bank.

And that’s the point of a high interest savings account.

Are Savings Account Worth It?

Simply put, for the past decade at least, putting money in a savings account in Canada has proven to be counter-productive. Some of Canada’s big banks even give interest rates as abysmally low as 0.05% and with Canada’s inflation rate at almost 2%, your savings account is actually costing you money.

This is giving savings accounts an increasingly bad reputation among account holders who are shying away from using them.

But for those who can’t help it and still need somewhere else to park their money on a short-term basis without exposing it to the carnage of the current financial climate, you can opt for a High Interest Savings Account (HISA) instead.

This is a low-risk savings solution that is perfect for short-term projects such as saving for a wedding, a vacation, tuition and so on.

How Do High Interest Savings Accounts Work?

A high interest savings account usually has an interest rate that is on par with the inflation rate or a little higher. And so we’ve collected 5 of the best HISAs operating in Canada at the moment.

Now keep in mind that all the banks or financial institutions mentioned in this article offer an interest rate of almost 2% or higher.

High Interest Savings Accounts (HISA) interest rates are not the same everywhere in Canada.

For instance, while a High Interest Savings Account (HISA) with a traditional bank will offer better and higher interest rates than regular savings account with the same bank, you may be restricted to a transaction limit.

The logic behind this is that if you constantly use the high-interest savings account for purchases or any of the daily transactions, your money is not sitting in there long enough for the bank to make a profit with it, which in turn means that it will be impossible for them to give you higher interest rates on your savings account.

Quick Peek At the Top 5 High Interest Savings Account (HISA)

Before we actually continue with the article, here’s a quick peek at the five High Interest Savings Account (HISA) we’ll be covering today –

1. EQ Bank’s Savings Plus Account
2. Tangerine’s Savings Account
3. Alterna Bank’s High Interest Savings Account (HISA)
4. Oaken Financial Savings Account
5. Wealth One’s High Interest Savings Account

High Interest Savings Account

How To Choose The Best High Interest Savings Account In Canada?

Simply put, with many of the major online only banks such as EQ Bank, they do not limit the debit transactions you can make on your HISA account per month.

What they would rather do is introduce a fee for some transactions, should you exceed your stated monthly activity quota on the account.

You will also be required to maintain a minimum balance to be eligible for the High Interest Savings Account (HISA) Interest rate.

For all the good a HISA promises, not all of them may fit your particular situation.

So before you consider any of the HISA options here, you must be sure it makes sense for you.

You should first find out:

  • Their transactional restrictions and if there are any lock-in periods

  • If the interest rate you see on a HISA is a promotional rate, an introductory rate, or a steady non-promotional rate

  • All the account fees (if any) charged for every type of debit transaction and the conditions that trigger them

So without further ado, here are the Top 5 High Interest Savings Accounts in Canada.

1. EQ Bank’s Savings Plus Account

EQ Bank is an online only Canadian Bank. When you operate an EQ Bank Savings Plus Account, your interest is calculated daily as 2.30% of your daily closing balance.

You receive the interest as a lump sum at the end of every month. Bear in mind though that EQ Bank’s HISA can only hold a maximum of $200,000 at any given time.

This online-only Canadian bank offers one of the most attractive HISA interest rates available in the country.

EQ Bank is the online-only derivative of its parent bank, Equitable Bank, and offers online High Interest Savings Account holders a mouth-watering, inflation safe interest rate of 2.30%.

This rate is not a promotional rate and is available to every HISA holder with EQ Bank.

Even more attractive is the fact that the bank strives to allow customers to run their High Interest Savings Accounts at no cost.

Benefits & Features Of The EQ Bank’s Savings Plus Account

1. No Account Fees
2. HISA Interest Rate – 2.30% (Not a promotional rate)
3. No limit on the number of monthly transactions
4. No monthly recurring fees
5. Electronic transfers and free mobile cheque deposits at no cost
6. No minimum balance requirement
7. No monthly limit on Interac e-transfers

2. Tangerine’s Savings Account

Like EQ Bank, Tangerine is also a subsidiary of a major bank, in this case, Scotiabank.

While the interest rates on the Tangerine’s HISA is not as attractive as what is on offer from EQ Bank, they make up for it with a mind-boggling promotional rate for new Tangerine customers.

This online-only bank is offering new customers a 2.75% interest rate that will carry for their first 6 months.

After this though, the rate drops to 1.10%. These rates also apply to their TFSA and RRSP Savings Accounts.

Tangerine Savings Account has no minimum balance requirement, no monthly fees, no service charges and no lock-in periods.

It also comes with an Automatic Savings Plan feature that transfers money to your High Interest Saving Account (HISA) from your Tangerine checking account. You just need to set your transfer cycle and amount and let the system handle the rest.

3. Alterna Bank’s HISA Account

Another online only Canadian Bank Is Alterna Bank.

Alterna Bank’s parent company is Alterna Savings, a reputable Canadian credit union that is well over a century old.

Alterna Bank is the direct banking arm of Alterna Savings and offers mostly online banking services.

However, customers who feel more comfortable with human interaction can still access their services at face-to-face locations in Ontario and Quebec.

Alterna Bank’s HISA is available at a non-promo interest rate of 2.25%. However, they do have a maximum account balance, which is pegged at $250,000. Like some other banks on this list, this HISA places no limits or fees on transactions, including Interac e-transfers.

4. Oaken Financial High Interest Savings Account

Oaken Financial is the direct banking arm of Home Bank, which is in turn owned by Canada’s largest trust company, Home Trust.

Like EQ Bank, their HISA option is currently available to both existing and new customers at an attractive interest rate of 2.30%.

Customers of Oaken’s Savings Account enjoy zero monthly fees, unlimited transactions, and a zero balance feature.

Like all the other banks or financial institutions on this list, your account balance is insured by the Canada Deposit Insurance Corporation (CDIC). So you won’t have to worry about losing your money when Oaken uses your money for investments.

5. Wealth One’s High Interest Savings Account

Wealth One Bank Of Canada operates under the regulation of the Office of the Superintendent of Financial Institutions (OFSI).

This CDIC-member bank is one of the newest banks on this list. They offer HISA, TFSA, and RRSP savings accounts, with their High Interest Savings Account offering old and new account holders a non-promotional 2.30% interest rate.

Wealth One’s HISA offers an Automatic Savings Program as well as a zero balance feature and zero monthly fees.

These round up our top 5 HISA options in Canada at the moment.

Credit Unions Offering High Interest Savings Accounts – Other Alternatives

You must bear in mind that while the above-mentioned banks or financial institutions were are our top five picks, they may not be for you. And so as an extra source of options, there are also a few credit unions that belong to this list of honourable mentions, especially because of their attractive rates.

  1. Max Savings with a HISA rate of 2.45%

  2. Hubert Financial with a HISA rate of 2.25%

  3. Ideal Savings with a HISA rate of 2.40%

  4. Achieva Financial with a HISA rate of 2.30%

  5. AcceleRate Financial with a HISA rate of 2.30%

  6. Outlook Financial with a HISA rate of 2.40%

  7. Implicitly Financial with a HISA rate of 2.30%

Conclusion

Now, that was the list of the best 5 High Interest Savings Account In Canada right now and the daily interest rates they offer.

Besides the fact that all of these HISA options in Canada offer much higher interest rates and that your deposits are insured by the CDIC, some of them do have unique offers too.

Tangerine, for instance, offers its new customers a cash bonus, while some others (including some of the credit unions) offer a referral program that you can take advantage of to boost your balance. The choice is yours to make.

If you found this article helpful, please share it on social media so that others can benefit from the content too! Also, let me know your thoughts and comments below.

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Sagar Sridhar

Sagar Sridhar Is a Personal Finance Blogger from Toronto, Canada. He is a Computer Science Engineer by profession and works in IT Industry. What started as a hobby, quickly turned into serious blogging and income. In this blog, Sagar passionately writes articles about Personal Finance, DIY Investing, Retirement, Stocks & ETFs, Frugal Living and much more. Do visit about page to know more about him. If you would like to get in touch, you can do so by emailing him at [email protected] and he'll get back to you at the earliest.

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