Best savings account

Offers: 4
Toronto-Dominion Bank
TD Every Day Savings Account
Rating by Finanso®

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$0 monthly fee
Tangerine Bank
Savings Account
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

$0 monthly fee

Effective interest rate on the product

Ultimate Package
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

up to $30.95 monthly fee
Royal Bank of Canada
Savings Deposit
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
no minimum deposit

Effective interest rate on the product

Best savings account

When searching for a savings account, anyone primarily focuses the amount of interest. The higher the interest rate is, the more attractive the account for bank customers is. But in any case, before you choose and open a new deposit in Canada, it does not hurt to carefully study the conditions and requirements. If you don't read the details, the account can get expensive and the user won't get any income at all. Special attention should be paid to the requirements of Canada's tax system.

What is a high-interest savings account (HISA)?

(HISA) is a special kind of savings account that has a high rate of return. Such an account gives the depositor an annual interest rate higher than the standard average savings deposit. A basic savings account allows as little as half a percent per annum. If we take into account the high rate of inflation, it turns out that there is no point in such savings. Canada has a historic inflation rate of just over two percent.

The HISA deposits under consideration help with their interest rate not only to stay ahead of inflation, but also to make some profit on the amount that has been put into the savings contract.

For example, a person put 5 thousand dollars into a regular basic account. At an interest rate of 0.5% per annum, he or she will earn 25 dollars per year. When depositing money into a HISA account, where the rate will be 2.5%, — 125 dollars.

The difference is obvious. But there are disadvantages to consider: the account is not designed for every day spendings and numerous transactions.

Keep in mind that not all savings accounts with high interest rates are the same. Some account options work at an increased rate constantly, others - only during special promotion companies.

Therefore, you should carefully choose the HISA product so as not to make a mistake.

The principle of operation of high-rate savings accounts

Essentially, an increased rate savings product works just like a standard one. Difference only in the level of the rate. But there are institutions where there are additional conditions for such deposits. Most often, the main limitation is the amount of money that the client can withdraw. In some banking organizations, in addition to such accounts, there are also restrictions on the number of transactions that are performed per month. Therefore, for daily payments it is better to open a standard account or a separate cheque one.

Important! There is no way to get a chequebook on HISA.

Banking organizations may differ in terms of the purpose of the rate itself. There are options with stable interest rates that do not change throughout the life of the deposit, there are proposals for a tiered interest rate. Here the choice depends on the period for which the depositor plans to leave the savings.

Types of accounts that can be opened in Canada

The choice of a deposit should be approached very carefully. There are several different options in Canada, each with its own advantages and disadvantages.

HISA Savings Accounts — High Percentage

They pay higher income for deposits. Every depositor should remember that from an unregistered savings account they need to pay taxes according to the Canadian laws.

Tax-free accounts

Tax shelter accounts are allowed with some investment products. The rate on such accounts is always lower, but the tax will not have to be paid. To open this type of account, you must be an adult Canadian citizen.

Account types for youth

Often Canadian banking organizations offer special accounts for children. These accounts, designed for young people, often have special programs to help them learn how to save and manage their money.

Savings accounts for the elderly

There are offers for the elderly depositors as well. They are not as popular as the accounts for youth, but offer special terms and a separate interest rate. Citizens over the age of 60 can participate.

U.S. Accounts

These are special deposits on which American money is stored. Available in all major banks in Canada. Suitable for people with dual citizenship as well as those who often travel to the US.

Hybrid Account

It's a hybrid option that provides the flexibility and variety of a cheque account. With such an account it is easy to make various transactions and transfers.

Attention! Another advantage of a hybrid account is high interest and lots of additional features.

How to pick up a score with high interest without errors?

Before you focus on a particular bank and the type of account, you should carefully analyze the proposed product. Each account has its advantages and disadvantages, so you need to pay attention to everything and take your time when choosing.

Profit rate

From the amount of deposit on any savings account, the depositor receives income in the form of an interest rate. Some products offer high and yet constant rates, while in some cases attractive high offers are available at first, and then the interest on the deposit gradually decreases. Therefore, when searching, you should pay attention to the rates that will be as high as possible throughout the year.

Transaction costs

It is optimal to select such accounts, where the bank offers several transactions per month for free. If all withdrawals, transfers and other transactions have to pay a high fee, then this will become unprofitable. This item is especially important for investors who know that they are making a lot of transactions.

Monthly fee

Many users think that they should pay more for an account with a high interest rate. In fact, there are many account options when, with a high interest rate, you don't have to pay every month.

Deposit Insurance

The majority of the investments in Canada are insured by a special Canadian Deposit Insurance Corporation. But there are certain types of accounts that are not covered by this corporation, so it is advisable to clarify exactly how your money is insured before opening an account.


In a competitive environment, various banks in Canada offer additional terms to attract customers to their side. There are basic types of tips on how to choose the best savings account:

  1. You need to decide why you need the account and what you are collecting money for. What time is set for this task is short or long term. So you can decide for how long to open an account.
  2. Be sure to compare as many bids as possible. To raise money in the short term, you can use offers with high interest rates for a small period in the form of shares.
  3. Tax assessment. Keep in mind that all deposits in HISA accounts are tax deductible. If it is a matter of principle, there are accounts that are not subject to taxation, but before opening them you should carefully study the conditions.
  4. It wouldn't hurt to be distracted by other investments. Experts advise to open deposits at several banks and on different accounts.

Important! When choosing an account with a high interest rate, you need to focus not only on the daily increased rate, but also on the minimum spending on transactions. Additional features, such as online banking, free wire transfers, and bill payments would also help. But a deposit with an increased daily rate will in any case be more profitable.

What are savings accounts for?

This is one of the tools that allows you to not only save, but to increase their savings. You can keep money in the account both for the long term and for the short term. A savings account differs from a cheque account in that it always has an interest rate. It may be different in amount, but it always is there.

Important! Savings accounts are not designed for daily cash transactions, as they have restrictions on transactions, as well as on early withdrawal of funds. The pluses of savings accounts in banks are that they are not affected by market fluctuations, unlike investments in stocks.

Differences between HISA and TFSA

TFSA at first glance resembles a high interest rate account or a simple basic savings account. But in reality these are very different banking products. Any HISA accounts are taxed as required by Canadian law. The depositor can put HISA in TFSA if desired.

Important! A tax-free account is a great proposal for long-term investments.

For TFSA, there are restrictions relating mainly to the number of dollars that can be kept in a given account.

A HISA high-interest savings account is more suitable for deposits for short periods of time. There is usually money transferred to save the “emergency fund”, as well as to save the funds and then use them for investment when a suitable case is exposed.

Advantages and disadvantages of the high-interest accounts

Advantages of high yield deposits:

  • always significant interest rates compared to basic offers;
  • small fees;
  • interest return guarantee;
  • more liquid than other investment options.

But there are also its own disadvantages:

  • the best HISA account offerings are online, and this limits the ability to make deposits and withdrawals;
  • there are types of transfers and money transactions, for which a high percentage of the commission is assigned;
  • lower returns compared to some investment instruments;
  • compared to a checking account, weak liquidity.

Before deciding that you need a HISA account with a high interest rate, it is necessary to analyze all its advantages and disadvantages. If everything suits you, you can start to select a specific bank proposal, which will imply a stable high percentage of income over a long period of time. It is important to remember that such an account is used more for storage rather than for daily operations.