We all have things we want. You may be itching to buy your first home, or maybe it’s time to upgrade your car, or perhaps you’ve resolved to finally being debt-free. No matter what you’re aiming for, healthy savings habits can help kick your plan into action.
Doing the prep work, like scoping out the best financial products, will get you one step closer towards financial wellness.
How high-interest savings accounts work
You may have guessed from the name that high-interest savings accounts aren’t like other savings accounts. They help you grow your money more quickly compared to regular savings accounts by earning you interest rates that are higher than normal.
Many high-interest savings accounts offered by the Big 5 Banks are online accounts that aren’t typically used for day-to-day banking. That’s because there are often fees associated with depositing, withdrawing and transferring money.
With fewer transactions from the account, banks are able to offer higher interest rates on their savings. The good news is that it doesn’t have to be one or the other anymore. It’s now possible to get all the perks of daily banking, free of charge, and earn a high-interest rate on your savings.
Best high-interest savings accounts in Canada
Choosing where to put your money is the first decision to make when building your savings. To make things easier, we’ve compared the most popular high-interest savings accounts in Canada to help you find what works best for you.
The Neo Savings account
With the Neo Savings account, you can earn 1.30%* on your money in one single account. Plus, access your money anywhere from your phone to pay bills and make transfers, all without the monthly fees.
EQ Bank High-Interest Savings Account
EQ Bank’s High-Interest Savings Account offers a 1.50% interest rate with no fees or minimums, including Interac e-Transfers and bill payments. They also offer low-cost international money transfers.
Oaken Bank Savings Account
Oaken Bank’s Savings Account comes with a 1.25% interest rate and no monthly fees or minimums. They also offer easy transfers from your savings account to an Oaken GIC, making it a convenient option if you already have an account with them.
Motus Bank High-Interest Savings Account
With the Motus Bank High-Interest Savings Account, you can earn 1.00% interest on your balance. They offer zero monthly transaction fees, but you’ll have to pay to send or request Interac e-Transfers.
Wealthsimple Cash is a no-fee digital account with a 0.75% interest rate. You can transfer money and pay bills, with no deposit minimums or balance requirements.
TD High-Interest Savings Account
The TD High-Interest Savings account comes with some pretty costly fees unless you have a balance of $25,000 or more. There is no minimum initial deposit, but you’ll only start earning interest at 0.05% once your balance reaches $5,000.
RBC High-Interest eSavings
The RBC High-Interest eSavings account offers a no-frills online account with no minimums, and the ability to earn 0.05% interest on your savings. It offers free online transfers between your existing RBC accounts and one free cash withdrawal per month from an RBC ATM.
CIBC eAdvantage Savings Account
The CIBC eAdvantage Savings earns you 0.05% interest on any savings with no monthly fee. This account doesn’t include any free transactions. Debit purchases, cash withdrawals, and etransfers will all cost you $5.00 each.
BMO Savings Builder Account
The BMO Savings Builder account offers a standard interest rate of 0.05% with no monthly fees or minimum balances. You can earn up to 0.5% bonus rate if you save a minimum of $200/month up to $250,000 balance. You can make one free transfer each month, but otherwise, pay $5 for each additional transfer or withdrawal.
Simplii High-Interest Savings
The Simplii High-Interest Savings account offers a slightly higher interest rate than the big 5 options, at 0.2%. The account comes with no monthly or transaction fees and no deposit minimums.
Tangerine Savings Account
The Tangerine Savings Account is an online account that earns 0.15% interest on your savings. Like other online savings accounts, you can sign-up online. There are no monthly fees or transaction fees, and special sign-up incentives offered periodically.
Scotiabank Money Master Savings Account
With the Scotiabank Money Master Savings account, you earn 0.05% interest with no deposit minimums. You can transfer money between Scotiabank accounts for free, but additional transfers cost an additional $5.
Based on research comparing high-interest savings accounts in Canada. Research conducted by Neo Financial and based on data taken from public websites at the time of publication.
What makes the Neo Savings account one of the best savings accounts in Canada?
At 1.30%* interest, not only does the Neo Savings account offer one of Canada's highest interest rates, it also comes with the added convenience of an everyday bank account. You can access your money at any time from your phone to transfer funds, pay bills and send money.
How to open a Neo Savings account
You can open a Neo account in minutes. Simply download the app to get started and start saving today.
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice. Neo Savings interest rate last updated May 17, 2021.
The Neo Savings account is provided by Concentra Bank, a CDIC member institution, and is eligible for CDIC deposit protection. Deposits held in Neo Savings accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor.