Best High-Interest Savings Accounts in Canada in 2020
A high-interest savings account is something that every Canadian should have. After all, who doesn't love the idea of earning free money? If you keep your savings in a high interest-savings account, that's essentially what will happen. There is no shortage when it comes to options for these types of accounts, however, it is worth taking the time to compare them; look at interest rates, perks, any associated fees, etc. before you choose which one is right for you. With that in mind, here are our picks for the best high-interest savings accounts in Canada in 2020.
EQ Bank (2.00%*)
Right now, EQ Bank offers one of the highest interest on a savings account in Canada: 2.45%* everyday interest with their EQ Bank Savings Plus account. EQ Bank is an online-only bank and provides additional perks such as free Unlimited Interac e-Transfers®, No Everyday Banking Fees, and no minimum balance.
There is, however, a maximum balance of $200,000 and, since EQ Bank doesn’t offer debit cards, cheque writing privileges, or physical locations, moving your money can be a bit trickier in comparison to other banks as you will need to rely on EFTs (Electronic Funds Transfers) or Interac e-Transfers® which are free which are free.
It is a minor inconvenience given the high interest rate on this account. You can link your primary bank account to your EQ Bank account, and transfer via an Electronic Funds Transfer (EFT) at no cost.
EQ Bank is not currently available for residents of Quebec.
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
Motusbank ( 1.75%)
If you are looking for a high-interest savings account with a great interest rate, then take a look at Motusbank. Motusbank may be a relatively new name when it comes to banking in Canada, and their offered interest rate is 1.75%. Motusbank has no minimum balance requirements, zero monthly fees, unlimited debit withdrawals or purchases, and you can access your account from more than 3700 free ATMs across the country. Another big perk; Motusbank offers deposit insurance through CDIC for up to $100,000. With a high rate at no cost, Motusbank offers one of the best savings accounts in Canada.
Motusbank is not currently available for residents of Quebec
Tangerine Standard Savings (0.25%)
If you are looking for some of the best bank interest rates in Canada on a high-interest savings account, then take a look at Tangerine. This online bank has incredibly competitive rates for new clients who will earn 2.50% for the first six months (up to a maximum of $1,000,000. After this promotional period, the rate drops down to a more conservative 0.70%, which is also the rate for current customers. Some of the benefits of the Tangerine Standard Savings Account include no minimums, no service charges, no fees, and free internal transfers.
Wealthsimple may not have the same enticing introductory rate as Tangerine, however, their overall interest rate is 2% (on deposits up to $100,000) which, ends up being a better long-term deal for customers. No monthly transaction fees and no minimum balance requirements also add to the attraction of this high-interest savings account. Another huge bonus that makes Wealthsimple stand out is that your deposits are protected by the Canadian Deposit Insurance Corporation (up to $1,000,000) making it a contender as one of the best savings accounts in Canada.
Meridian Good to Grow High-Interest Savings Account (1.4%)
An Ontario based credit Union, Meridian offers Canadian customers a high-interest savings account with an interest rate of 1.40%. This is pretty low in comparison to other bank interest rates in Canada, however, Meridian offers a very enticing promotional rate for new accounts: 3% interest for the first 5 months. There are no monthly fees, and users have unlimited free transactions with over 3700 ATMs across Canada. Deposits are insured up to $250,000 by DICO (Deposit Insurance Corporation of Ontario).
Scotia Momentum Plus Savings Account (1%)
Scotiabank’s Momentum Plus Savings Account may seem like an odd pick for this list since the offered interest rate, 1.00%, is pretty low in comparison to other accounts featured here. However, what makes this high-interest savings account so attractive is ability to earn bonus interest. Bonus interest, known as Premium Period Interest with Scotiabank, is paid out when you leave your savings untouched for a certain period of time. With this account, you can earn up to an extra 1% bonus interest (depending on how long you are willing to lock it away for) which means that 1.00% interest rate can be bumped up to 2.00%. There is no monthly fee, no minimum balance, and self-service transfers between Scotiabank accounts are free.
Motive Financial (2.05%)
Motive Financial’s Savvy-Savings account promises to impress with an interest rate of 2.05% on account balances up to $1,000,000 making it a top contender for the best high-interest savings account in Canada. However, with a rate that high there is a bit of a catch. While the Savvy-Savings account has no monthly fees, there are only 2 free withdrawals allotted per month. Any additional withdrawal will come with a $5 surcharge, though transfers between Motive Financial accounts are free. The interest rate is definitely appealing, but this account is geared more towards long-term savings.
Motive Financial is not currently available for residents of Quebec
Alterna Bank (1.69%)
Alterna Bank’s high-interest e-savings account comes with 1.69% interest rate. Like the other accounts on this list, there are no monthly fees and additional benefits include no minimum balance, unlimited Interac e-transfers, as well as free, unlimited bill payments and transfers. Potential customers will also take satisfaction in knowing that eligible deposits are ensured through CDIC.
Alterna Bank’s high-interest e-savings account is available to all Canadian citizens.
Oaken Financial (1.65%)
Oaken Financial’s Oaken Savings Account also offers an interest rate of 1.65% which, while not the highest rate available to Canadians, is still quite reasonable. Unsurprisingly, the Oaken Savings Account has no monthly fees, no minimum balance requirement, and offers unlimited transactions. Oaken Financial is also insured by CDIC, so you know that your money is safe. It’s a basic account, but still a good choice for Canadians looking for good rates on a high-interest savings account.
Oaken Financial products are available to all Canadian citizens.
Everyone needs a savings account, so you may as well choose a savings account with high-interest. Whether your needs are long-term, mid-term, or short-term, a high interest savings account really is a smart place to keep your money. Hopefully, after reading about the differences of these high-interest savings accounts in Canada, you’ll have a better idea of which option is best suited to your financial interests and needs.