Searching for the best savings account in Canada? We’ve got it covered with our review of the Best High Interest Savings Accounts in Canada 2020, as well as how to choose the one for you.
How would you like to make money on your money? Sounds pretty good, doesn’t it? Well, that’s essentially what happens when you open a high interest savings account in Canada. Plus, it’s a good way to kick start the good habit of saving money, whether it’s for retirement, a house, or for a fun trip.

But what exactly is a high interest savings account? How does it work, and more importantly, do you really need one? Read on, because we’re sharing everything you need to know about the best savings accounts in Canada.

Summary of the Best High Interest Savings Accounts in 2020

High Interest Savings AccountInterest RateFeesMore Info
Scotiabank® MomentumPLUS Savings Account1.00%-2.0%$5 per transaction that is not a self-service transferLearn More
Tangerine SavingsPromo: 2.75%*
1.05%
$0Learn More
Wealthsimple Smart Savings2.0%$0Learn More
EQ Bank Savings Plus Account2.30%$0Learn More

There is no shortage of options for high interest savings accounts in Canada. Here’s a breakdown of the best savings accounts in Canada.

Review of the Best High Interest Savings Accounts 

Scotiabank® MomentumPLUS Savings Account

The Scotiabank MomentumPLUS Savings Account is ideal for those who have a lower balance or are happy to leave their money alone for an extended period of time. This savings account has no monthly fee, no minimum balance, and unlimited self-service transfers to other Scotiabank accounts ($5 fee does apply for external transfers). As for the interest rate: the base rate is 1.00% however, that rate will increase (thanks to the premium period interest) the longer you leave your money untouched (minimum 90 days). If you don’t disturb your balance for 360 days or more, you can make the top rate of 2.0%.

Learn more about Scotiabank MomentumPLUS Savings Account

Tangerine Savings

Tangerine_210x100For those just starting out, Tangerine offers a great savings account with competitive perks such as no fees or service charges, and no minimum balance required. Tangerine also lets clients set up an automatic savings program and doesn’t lock in the money – you are free to move it around as you please. The current interest rate with Tangerine is 1.05%, however, right now Tangerine is offering new clients 2.75% interest on their first Savings Account for 5 months, up to a maximum of $1,000,000. With no fees and 24/7 customer service, it’s no wonder we selected Tangerine as the best online bank in Canada.

Learn more about Tangerine

Wealthsimple Smart Savings

 wealthsimple_210x100Wealthsimple is another great choice. The big draw here is the high interest rate which is 2.0% (on all deposits up to $100,000). That’s not a promotional rate or a limited time offer: it’s just their everyday awesome rate. If that isn’t enticing enough, WealthSimple offers a savings account with no fees or minimum/maximum balance requirements. Plus, despite the fact that it’s an online-only bank, Wealthsimple deposits are protected by the Canadian Deposit Insurance Corporation (up to $1,000,000). For these reasons, it’s one of the best high-interest online savings accounts in Canada. Sign up here.

Learn more about Wealthsimple Smart Savings

EQ Bank Savings Plus Account

EQ_Bank_210x100When it comes to high-interest savings accounts in Canada, EQ Bank Savings Plus Account really is a great choice. The everyday interest rate is 2.30%*, making it one of the highest rates in Canada. Additionally, there is no minimum balance requirement (though there is a maximum balance of $200,000), and it’s a savings account with no monthly fees. EQ Bank Savings Plus Account offers free Interac e-Transfers®, as well as unlimited free transfers to other EQ accounts and unlimited bill payments. Sign up here.

Learn more about EQ Bank

*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.


What is a High Interest Savings Account?

The goal with a high interest savings account is to help you save money. This benefits not just you as the client, but also the bank itself. With day-to-day chequing accounts, the bank needs to be able to move the money. However, with a high interest savings account, clients are “incentivized” to leave their money alone, therefore allowing the bank to loan it out to other customers.

In order to encourage customers to do this, banks offer high interest rates on specific savings accounts – which means that you, as the client, can earn money for keeping your money in one place. There are even some savings accounts without fees! However, there are often some restrictions in place with these types of accounts regarding withdrawals, access, and minimum deposits. Despite these restraints, having money in a high interest savings benefits you in the long run.

Anyone, at any age, can benefit from opening a high interest savings account. Whether you have some extra money sitting around with no immediate plans to use it or are saving for something specific in the future like retirement, a high interest savings account is a great place to put your money. It’s an especially good option for those who aren’t comfortable with taking risks. That being said, the key to a successful high interest savings account is being able to leave it untouched, which does require some discipline.

How to Choose a Best Savings Account

There are several options when it comes to choosing a high interest savings account in Canada – so you will need to shop around and compare to find the best option for your personal needs. There are several factors to consider when choosing the best savings account in Canada including:

  • Minimum/maximum balance
  • Monthly fees
  • Transaction fees
  • Interest rates
  • Access to your funds (how easy is it to move or withdraw money between accounts?)

You also need to pay attention to the fine print when it comes to the interest rate: is the rate you’re getting an introductory rate that will disappear in 3-6 months? Take the time to look into these details, as they vary from bank to bank and don’t immediately knock out the little guys – you’d be surprised at how much they have to offer.

High Interest Savings: The Bottom Line

A high interest savings account is really essential when it comes to personal finances and banking. As the above summaries indicate, you don’t necessarily need to have a ton of money to start one. Just make sure to take the time to read up on the pros and cons of each before choosing the best high interest savings account for your needs. Set up an automated savings plan, and you’ll be a savvy saver in no time!

Disclaimer: Young & Thrifty has entered into a referral and advertising arrangement with Wealthsimple US, LTD and receives compensation when you open an account or for certain qualifying activity which may include clicking links. You will not be charged a fee for this referral and Wealthsimple and Young and Thrifty are not related entities. It is a requirement to disclose that we earn these fees and also provide you with the latest Wealthsimple ADV brochure so you can learn more about them before opening an account.

Article comments

4 comments
william clarke says:

What about Motive Financial the online only arm of Canadian Western Bank which offers 2.8 % non promo rate.

Tiffany Lin says:

Hey! Just to clarify, but I do think EQ Bank offers free unlimited interact transfer now – see features here: https://www.eqbank.ca/personal-banking/features-rates/savings-plus-account-fees-and-features

Mike says:

How about B2B bank. Offers 3.3%
I wonder why would this article miss the best rates?

Lisa Jackson says:

Hi Mike,

B2B Bank is primarily geared to Canadian financial advisors. Hence why it didn’t make the list initially. However, we’re always updating our articles, so we’ll keep this one in mind! Thanks!