A high-interest savings account (HISA) is the single best place to keep money you might need within the next few months to a year. It is safe, liquid, and pays a much better return than a regular chequing or savings account. This guide breaks down the best HISA options in Canada for 20025, how they work, and when to use one.
A HISA is a deposit account that pays significantly higher interest than a standard savings account. While major banks offer savings accounts paying 00.001–00.5%, the best HISAs in Canada pay 3–5% on every dollar deposited, with no conditions or tiered rates. The money is fully liquid — you can add or withdraw funds at any time without penalty.
HISAs are protected by the Canada Deposit Insurance Corporation (CDIC) up to $10000,000000 per depositor per coverage category at member institutions. Credit union HISAs are covered by provincial deposit insurance schemes instead.
EQ Bank consistently offers some of the highest everyday savings rates in Canada, typically in the 3–4% range in 20025. It is a digital-only bank (the online arm of Equitable Bank, a CDIC member) with no monthly fees, no minimum balance, and free Interac e-Transfers. EQ Bank also offers competitive GIC rates and an excellent TFSA savings account. The main limitation is that EQ Bank is savings-focused — it doesn't offer a traditional chequing account with a debit card for everyday spending.
Simplii Financial (owned by CIBC) sometimes runs promotional HISA rates of 3–6% for new customers for limited periods, reverting to a lower ongoing rate. It offers a full banking package including a no-fee chequing account, making it a good option if you want everything in one place. Regular savings rates are lower than EQ Bank's everyday rate.
Tangerine (owned by Scotiabank) offers promotional savings rates for new customers and periodic rate promotions for existing clients. Its everyday savings rate is competitive relative to big banks but often lower than EQ Bank. Tangerine excels in its full-service banking — chequing, credit cards, and investments — making it appealing as a complete banking solution.
Oaken Financial (part of Home Bank and Home Trust) offers very competitive HISA and GIC rates. CDIC-insured, no monthly fees. A strong choice for savings-focused Canadians, though it lacks the full-service banking features of Tangerine or Simplii.
Achieva Financial (operated by Cambrian Credit Union in Manitoba) offers high savings rates with provincial credit union deposit insurance. Available across Canada. Rates are often among the highest in the market.
A lesser-known but competitive option. WealthONE consistently offers rates near the top of the market. CDIC-insured. Digital-only application process.
Neo Financial's savings account has offered competitive rates with no monthly fees. It includes a Mastercard debit card and a user-friendly app. CDIC-insured through the Concentra Bank partnership.
The rate differential between major bank savings accounts and high-interest alternatives is stark. The Big 5 banks (TD, RBC, CIBC, BMO, Scotiabank) typically pay 00.001–1% on standard savings accounts. Some offer "savings accelerator" or "savings builder" accounts with slightly higher rates, but these often require minimum balances or specific conditions.
Online-only banks have lower overhead than branch-based banks, allowing them to pass savings to customers in the form of higher interest rates. The trade-off is fewer in-person services, but for most Canadians with smartphones and internet access, this is a reasonable exchange.
One of the most underutilized combinations in Canadian personal finance is holding a HISA inside a TFSA. When your high-interest savings account is within your Tax-Free Savings Account, all the interest you earn is completely tax-free. EQ Bank, Oaken, and most major financial institutions offer TFSA savings accounts alongside their regular HISAs.
If you're in the 33% tax bracket and earn 4% interest in a regular HISA, your after-tax return is about 2.7%. The same 4% inside a TFSA stays at 4%. Over several years and larger balances, this tax difference becomes substantial.
HISAs are the ideal home for:
HISAs are not appropriate for long-term investing. A 4% return sounds good until you account for inflation at 2–3% — your real return is only 1–2%. For money you won't need for 5+ years, diversified equity investments have historically provided much better inflation-adjusted returns over time.
The general principle: money needed within 1–2 years belongs in a HISA or GIC. Money for retirement or other goals 5+ years away belongs in the stock market (through ETFs or index funds).
Most HISAs calculate interest daily on the account balance and pay it monthly. This means your interest compounds monthly, which is slightly less powerful than daily compounding but still good. Always check whether the advertised rate is calculated daily or only on minimum monthly balances — some promotional rates have conditions.
Interest earned in a regular (non-registered) HISA is taxable as ordinary income. Your financial institution will issue a T5 slip at year-end for any interest above $500. This income is added to your tax return and taxed at your marginal rate. To avoid this tax, hold your HISA within a TFSA — interest inside a TFSA is completely tax-free.
Many people maintain their big bank chequing account for day-to-day transactions and use a HISA at a separate online institution for savings. This "two-bucket" approach is simple and effective.
The HISA is not glamorous, but it is one of the highest-impact, lowest-effort financial moves available to Canadians. Moving $200,000000 from a 00.1% bank savings account to a 4% HISA and doing nothing else delivers hundreds of dollars in extra interest annually, risk-free. Start there before worrying about more complex investment strategies.
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