In today’s economic climate, letting your hard-earned money sit in a low-interest savings account is like watching it lose value to inflation. With the Bank of Canada’s interest rate policies shaping the financial landscape in 2025, finding high-interest savings accounts in Canada that actually grow your money has become more important than ever.
Whether you’re building an emergency fund, saving for a down payment, or simply looking to earn more on your idle cash, the right savings account can make a significant difference. This comprehensive guide examines the top 10 high-interest savings accounts available to Canadians in 2025, comparing interest rates, fees, accessibility, and special features. By the end of this article, you’ll know exactly which account suits your financial goals and how to maximize your savings potential without sacrificing security or convenience.
Why High-Interest Savings Accounts Matter in 2025
The difference between a standard savings account offering 0.05% interest and a high-interest account offering 4-5% might seem small at first glance, but the impact on your wealth accumulation is substantial. On a $10,000 balance, a 0.05% rate earns you just $5 annually, while a 4.5% rate generates $450—that’s ninety times more interest.
In 2025, inflation continues to affect purchasing power, making it crucial to earn competitive returns on your savings. High-interest savings accounts provide a safe, liquid option that outpaces traditional savings while maintaining CDIC (Canada Deposit Insurance Corporation) protection up to $100,000 per account category.
Unlike investments in stocks or mutual funds, high-interest savings accounts offer guaranteed returns without market risk. This makes them ideal for emergency funds, short-term savings goals, or parking cash between investments. The accessibility and security of these accounts provide peace of mind while your money grows steadily.
Top 10 High-Interest Savings Accounts in Canada 2025
1. EQ Bank Savings Plus Account
EQ Bank consistently ranks among Canada’s top digital banks, and their Savings Plus Account leads the pack with competitive rates and no monthly fees. As of 2025, they’re offering approximately 4.00% interest on all balances with no minimum deposit requirements.
What sets EQ Bank apart is the simplicity—no promotional rates that drop after a few months, no complex tier structures, and no hidden fees. You earn the same competitive rate whether you have $100 or $100,000 in your account. The account is fully digital, accessible through their user-friendly mobile app and website.
Additional features include unlimited free transactions, instant access to your funds through Interac e-Transfer, and the ability to link external bank accounts for easy transfers. EQ Bank also offers Joint Savings Plus accounts with the same great rate, perfect for couples managing shared savings goals. The only drawback is the lack of physical branches, but for digitally-savvy Canadians, this trade-off is worthwhile for the superior interest rates.
2. Tangerine Savings Account
Tangerine, owned by Scotiabank, offers a compelling high-interest savings account that balances competitive rates with accessibility. Their promotional rates for new customers often reach 5.00-5.50% for the first 5-6 months before settling to a base rate around 3.50% in 2025.
The Tangerine Savings Account requires no minimum balance and charges no monthly fees. Customers can open multiple savings accounts with custom nicknames—perfect for organizing different savings goals like “Emergency Fund,” “Vacation,” or “Down Payment.” This feature helps with budgeting and tracking progress toward specific objectives.
Tangerine provides multiple access channels including online banking, mobile app, telephone banking, and a network of Scotia ABMs across Canada. While they don’t have traditional branches, their Cafés in major cities offer face-to-face support when needed. The promotional rate structure benefits new customers significantly, though existing customers should monitor rates and consider moving funds if the base rate becomes less competitive.
3. Simplii Financial High Interest Savings Account
Simplii Financial, CIBC’s digital banking arm, offers a high-interest savings account with rates hovering around 4.00-4.50% for promotional periods in 2025. Their account combines competitive interest with the backing and infrastructure of one of Canada’s largest banks.
There are no monthly fees, no minimum balance requirements, and unlimited transactions. Simplii account holders can access their funds through CIBC’s extensive ABM network at no charge—a significant advantage over purely online banks. This provides the convenience of traditional banking with the rates of digital-first institutions.
Simplii regularly offers promotional bonuses for new customers, sometimes including cash bonuses in addition to elevated interest rates. The integration with CIBC means easy transfers if you have other CIBC products, and their customer service is accessible through phone, chat, and social media. The main consideration is that promotional rates eventually expire, requiring you to stay informed about current offers and potentially switch accounts to maintain optimal returns.
4. Motive Financial Savvy Savings Account
Motive Financial, a division of Canadian Western Bank, provides consistently competitive rates through their Savvy Savings Account. In 2025, they’re offering approximately 4.25% interest with no promotional gimmicks—this is their standard rate available to all customers.
The account has no monthly fees, no minimum balance, and provides unlimited free transactions. Motive Financial focuses on straightforward banking without hidden conditions or temporary promotional rates that drop dramatically after introductory periods. This transparency appeals to savers who want predictable, reliable returns.
Account management occurs entirely online or through their mobile app. While Motive doesn’t have physical branches or ABMs, they provide free Interac e-Transfers for moving money in and out of your account. Their customer service receives high marks for responsiveness and helpfulness. The stable, non-promotional rate structure means you can set up your savings and trust you’re receiving competitive returns without constantly monitoring rate changes or switching accounts.
5. Oaken Financial Savings Account
Oaken Financial, part of Home Bank, specializes in high-interest savings products for Canadians seeking maximum returns. Their Savings Account offers rates around 4.00-4.30% in 2025, positioning them competitively among digital banks.
With no fees, no minimum balance, and CDIC insurance, Oaken provides security and competitive returns. The account allows unlimited deposits and withdrawals without penalty, though redemptions can take 1-2 business days to process—slightly longer than instant-access competitors but acceptable for most savers.
Oaken Financial operates entirely online, which keeps their overhead low and allows them to pass savings to customers through higher interest rates. They offer excellent customer service via phone and email. One unique feature is their GIC (Guaranteed Investment Certificate) ladder options, making it easy to graduate from savings accounts to higher-earning fixed-term products as your financial situation evolves.
6. Meridian Credit Union High Interest Savings Account
Meridian, Ontario’s largest credit union, offers a High Interest Savings Account with competitive rates around 3.80-4.20% for members in 2025. Credit unions often provide more personalized service and community focus compared to large banks.
Membership requirements are straightforward—generally just living, working, or worshipping in Ontario, though some exceptions exist. Once you’re a member, you gain access to their high-interest savings with no monthly fees and no minimum balance. Unlike pure digital banks, Meridian has physical branches throughout Ontario, providing face-to-face service when needed.
The credit union structure means depositors are actually members with a say in operations. Meridian’s commitment to community and ethical banking appeals to socially conscious consumers. Their online and mobile banking platforms are modern and user-friendly. The main limitation is geographic—if you don’t qualify for membership or move outside their service area, maintaining the account becomes complicated.
7. Alterna Bank High Interest Savings Account
Alterna Bank, the digital arm of Alterna Savings credit union, provides a High Interest Savings Account with rates approximately 4.00% in 2025. They combine credit union values with digital banking convenience, offering competitive returns without physical branch requirements.
The account has no fees, no minimum balance, and unlimited transactions. Alterna Bank is particularly attractive for environmentally and socially conscious savers, as they’re Canada’s first carbon-neutral financial institution. Their commitment to sustainable banking doesn’t compromise returns—their rates remain competitive with top digital banks.
Account holders access funds through online banking, mobile app, or free Interac e-Transfers. While Alterna Bank doesn’t have its own ABMs, you can use The Exchange Network and Acculink ABMs across Canada without surcharge fees. Their customer service emphasizes personalized support, reflecting their credit union roots. If your values align with ethical banking and environmental responsibility, Alterna Bank offers compelling returns while supporting your principles.
8. Canadian Tire Bank High Interest Savings Account
Canadian Tire Bank might surprise many as a competitive savings option, but their High Interest Savings Account offers approximately 3.75-4.00% interest in 2025. Part of the Canadian Tire Financial Services family, they provide legitimate banking services beyond retail rewards programs.
The account requires no minimum balance, charges no monthly fees, and offers flexible access to funds. While Canadian Tire Bank doesn’t have standalone branches, you can conduct certain transactions at Canadian Tire retail locations across Canada. This unique hybrid approach provides some physical presence without traditional bank branch infrastructure.
Canadian Tire Bank account holders who also use Canadian Tire products may benefit from integrated rewards and promotions. The interest rate, while competitive, sometimes falls slightly below the top-tier digital banks. However, the convenience of retail location access and the trusted Canadian Tire brand make this account worth considering, especially if you’re already within their ecosystem of products and services.
9. KOHO Premium High Interest Savings
KOHO takes a different approach as a fintech platform offering a Premium account with high-interest savings features. In 2025, their Premium tier provides approximately 4.00-5.00% interest on savings balances, combined with spending card features and cash-back rewards.
The KOHO Premium account costs $9/month but includes numerous benefits: high interest on savings, higher cash-back rates on purchases, premium customer support, and virtual credit building services. For savers who want banking, spending, and wealth-building in one platform, KOHO offers an integrated solution.
The savings component is technically a high-interest savings feature within their overall platform rather than a standalone account. Funds are accessible instantly through the KOHO app and card. The monthly fee requires calculation—if you maintain sufficient balances and utilize all premium features, the interest earnings and cash-back rewards exceed the subscription cost. However, if you purely want savings without the spending features, traditional no-fee high-interest accounts may serve you better.
10. Neo Financial High Interest Savings Account
Neo Financial, a rapidly growing fintech company, offers a High Interest Savings Account with rates around 3.50-4.00% in 2025. Their modern app-based platform appeals to tech-savvy Canadians seeking streamlined banking without legacy bank complexity.
Neo’s savings account has no fees, no minimum balance, and instant access to funds through their app. What distinguishes Neo is their integration with Neo Card and Neo Invest products—you can manage savings, spending, and investing through one intuitive platform. Their partnership with major retailers provides cash-back opportunities that complement your savings strategy.
The fully digital experience means no physical branches or ABMs, but Interac e-Transfer provides free fund movement. Neo’s customer service operates through in-app chat with quick response times. As a newer fintech company, they’re aggressively competing for customers with competitive rates and user experience innovation. While they lack the decades-long history of traditional banks, their CDIC insurance provides the same deposit protection, making them a safe choice for those comfortable with digital-first banking.
How to Choose the Right High-Interest Savings Account
Comparing Interest Rates and Rate Types
Interest rates are obviously crucial, but understanding rate structures is equally important. Some banks offer promotional rates that provide high returns for 3-6 months before dropping to lower base rates. Others provide standard rates that remain consistent for all customers regardless of tenure.
Promotional rates can be excellent if you’re willing to switch accounts periodically—a strategy called “rate chasing.” However, this requires effort and organization. Standard rates offer simplicity and stability, ideal if you prefer set-and-forget savings strategies.
Pay attention to how interest is calculated and paid. Most high-interest savings accounts calculate daily interest and pay monthly, maximizing your compound returns. Some accounts have tiered rates where higher balances earn better rates, while others offer flat rates regardless of balance. For most Canadians, flat-rate accounts provide better value unless you’re maintaining very large balances that qualify for premium tiers.
Evaluating Fees and Minimum Balance Requirements
The best high-interest savings accounts in Canada charge zero monthly fees and require no minimum balance. These two factors can significantly erode your returns if you’re not careful. A $10 monthly fee costs $120 annually—on a $5,000 balance at 4% interest, that fee consumes 60% of your earnings.
Similarly, minimum balance requirements can be problematic. If an account requires maintaining $5,000 but you need to dip below that for an emergency, you might face fees or lose that month’s interest entirely. Look for accounts with no minimums, providing flexibility to withdraw funds when life demands it without penalty.
Watch for hidden fees like transaction limits, withdrawal charges, or Interac e-Transfer costs. Truly free accounts allow unlimited transactions and free fund transfers, ensuring your entire interest earning goes to you, not back to the bank in fees.
Considering Access and Convenience
Liquidity matters when choosing savings accounts. High-interest accounts should provide relatively easy access to your funds—that’s what distinguishes them from GICs or locked-in investments. Most top accounts offer same-day or next-day access through electronic transfers.
Consider your preferred banking channels. If you value in-person service, a credit union or bank with physical branches might suit you better than a digital-only bank, even if the rate is slightly lower. Conversely, if you’re comfortable with app-based banking, purely digital banks often offer the highest rates by eliminating branch overhead.
ABM access varies significantly. Some digital banks partner with ABM networks for free withdrawals, while others require you to transfer funds to another account first. If you anticipate needing cash access directly from your high-interest account, verify ABM availability and associated fees.
Understanding CDIC Insurance Protection
All legitimate high-interest savings accounts in Canada from banks should carry CDIC (Canada Deposit Insurance Corporation) insurance, protecting deposits up to $100,000 per depositor per insured category. Credit unions have equivalent provincial insurance—for example, FSRA in Ontario or CUDIC in Manitoba.
This insurance means your money is protected even if the financial institution fails. Never sacrifice this security for marginally higher rates from uninsured institutions. The peace of mind from government-backed insurance is invaluable.
Understanding CDIC categories allows you to protect more than $100,000 if needed. Deposits in your name alone are insured separately from joint accounts, RRSP deposits, TFSA deposits, and RESP deposits. Strategic account structuring can extend insurance coverage across multiple accounts and institutions.
Maximizing Your High-Interest Savings Account Returns
Using TFSA and RRSP Registered Accounts
Many Canadians don’t realize they can hold high-interest savings accounts within Tax-Free Savings Accounts (TFSAs) or Registered Retirement Savings Plans (RRSPs). This strategy provides tax-advantaged growth on your interest earnings.
In a TFSA, all interest earned is completely tax-free. For someone in a 30% tax bracket earning 4% interest, the after-tax return in a regular account is only 2.8%. In a TFSA, you keep the full 4%. Over time, this difference compounds significantly. Most banks offering high-interest savings accounts also offer TFSA versions with the same competitive rates.
RRSP high-interest savings accounts work differently—contributions are tax-deductible, reducing your current tax bill, and interest grows tax-deferred until withdrawal in retirement when you’re likely in a lower bracket. This strategy works best for savings you won’t need until retirement.
Automating Your Savings Strategy
Automation removes willpower from the savings equation. Set up automatic transfers from your chequing account to your high-interest savings account each payday—even $50 biweekly adds up to $1,300 annually plus interest.
The “pay yourself first” principle treats savings as a non-negotiable expense like rent or utilities. When transfers happen automatically, you adjust spending to your remaining balance rather than saving whatever’s left at month-end (which is often nothing).
Many banks allow you to create multiple savings accounts with different purposes—emergency fund, vacation, home down payment. Automatic transfers to designated accounts keep goals organized and visible, increasing your motivation to maintain the savings habit.
Laddering with GICs for Higher Returns
Once you’ve built an adequate emergency fund in your high-interest savings account (typically 3-6 months of expenses), consider a GIC ladder strategy for additional savings. GICs offer higher interest rates than savings accounts but lock your money for fixed terms.
A ladder involves splitting funds across multiple GICs with different maturity dates—for example, $5,000 each in 1-year, 2-year, 3-year, 4-year, and 5-year GICs. Each year, when a GIC matures, you reinvest it in a new 5-year GIC (usually the highest rate). This provides better returns than savings accounts while maintaining some liquidity since a GIC matures annually.
The high-interest savings account holds your emergency fund and short-term savings, while the GIC ladder maximizes returns on money you won’t need soon. This balanced approach optimizes your overall savings return without sacrificing too much accessibility.
Common Mistakes to Avoid with High-Interest Savings Accounts
Chasing Promotional Rates Without Doing the Math
Promotional rates seem attractive—5% for six months sounds amazing. However, if the rate drops to 1% afterward and you forget to move your money, you might earn less overall than staying with a consistent 3.5% account.
Calculate the blended annual rate before switching for promotions. If an account offers 5% for six months then 1% for six months, your effective annual rate is 3%—potentially worse than your current account. Factor in the time and effort required to switch accounts frequently.
Rate chasing can be profitable if done systematically, but it requires organization, calendar reminders, and willingness to actively manage multiple accounts. For many Canadians, finding one great account with consistently competitive rates provides better results than constantly churning through promotional offers.
Keeping Too Much in Savings Accounts
High-interest savings accounts are excellent for emergency funds and short-term goals, but they shouldn’t house all your wealth. With rates around 4%, you’re barely outpacing inflation, meaning your purchasing power stays roughly flat rather than growing significantly.
Long-term wealth building requires investing in assets with higher return potential—stocks, bonds, real estate, or diversified portfolios. A balanced approach keeps 3-6 months expenses in high-interest savings for emergencies, money needed within 1-2 years in savings or short-term GICs, and long-term savings in investment accounts.
Risk tolerance and time horizon determine your appropriate mix. Someone ten years from retirement needs more accessible savings than a 25-year-old with decades before needing the funds. Consult a financial advisor to determine your optimal allocation between savings accounts and investment products.
Ignoring Tax Implications
Interest earned in non-registered accounts is fully taxable as income at your marginal tax rate. Many Canadians forget to account for this, overestimating their actual returns. A 4% interest rate becomes 2.8% after-tax if you’re in a 30% tax bracket.
Using TFSA accounts for your high-interest savings eliminates this tax burden entirely (contribution room permitting). If your TFSA is full, RRSP accounts provide tax deferral. Non-registered accounts should be your last choice for holding interest-bearing investments due to unfavorable tax treatment.
Keep accurate records of interest income for tax filing. Banks issue T5 slips annually showing interest earned, which you must report. Missing this income can trigger CRA audits and penalties. Using tax-advantaged registered accounts simplifies record-keeping and maximizes your after-tax returns.
Setting and Forgetting Your Account
The savings account landscape changes continuously. Banks adjust rates quarterly, new competitors emerge, and your current bank’s once-great rate might become mediocre. Setting up a high-interest savings account and never reviewing it can cost you hundreds or thousands of dollars over time.
Schedule an annual review of your savings strategy. Check current rates from top providers, evaluate whether your account still ranks competitively, and consider switching if better options exist. This 30-minute annual checkup ensures you’re always earning near-maximum returns on your savings.
Also review your savings goals and emergency fund adequacy annually. Life changes—income increases, family grows, housing costs rise—requiring adjustments to your target savings amounts. Regularly reassessing ensures your savings strategy aligns with your current reality rather than outdated assumptions.
Frequently Asked Questions (FAQs)
What is the highest interest rate for savings accounts in Canada right now?
The highest interest rates for savings accounts in Canada in 2025 typically range from 4.00% to 5.50%, depending on whether you’re looking at standard rates or promotional offers for new customers. Digital banks like EQ Bank, Simplii Financial, and Motive Financial consistently offer rates around 4.00-4.50% as their standard rates available to all customers. Promotional rates from banks like Tangerine often reach 5.00-5.50% for new customers during introductory periods of 5-6 months before reverting to lower base rates. When comparing high-interest savings accounts in Canada, always distinguish between temporary promotional rates and permanent standard rates. Consider whether you’re willing to switch accounts when promotions expire or prefer stable, long-term rates. Also verify if rates are tiered based on balance amounts or flat across all balances. The highest rates come from online-only banks with lower overhead costs, while traditional brick-and-mortar banks typically offer lower savings rates due to higher operational expenses.
Are online high-interest savings accounts safe in Canada?
Yes, online high-interest savings accounts in Canada are completely safe when offered by CDIC-insured banks or provincially-insured credit unions. The Canada Deposit Insurance Corporation (CDIC) automatically protects eligible deposits up to $100,000 per depositor per insured category at member institutions, regardless of whether the bank operates online or through physical branches. This means your money at EQ Bank, Simplii Financial, or Tangerine has the same government-backed protection as deposits at TD, RBC, or Scotiabank. Credit unions have equivalent provincial insurance—FSRA in Ontario, CUDIC in Manitoba, and so on. The key is ensuring your financial institution displays CDIC membership or provincial credit union insurance. Online banks actually offer some security advantages: reduced risk of physical theft, comprehensive digital security measures, and encrypted transactions. They’re required to meet the same regulatory standards as traditional banks. The only legitimate safety concern is cybersecurity on your end—use strong passwords, enable two-factor authentication, and avoid accessing accounts on public WiFi. The high-interest savings accounts in Canada from reputable online banks provide excellent security combined with superior interest rates.
Can I have multiple high-interest savings accounts?
Absolutely—you can have as many high-interest savings accounts as you want, both at different institutions and multiple accounts at the same bank. Many Canadians strategically maintain multiple accounts to organize savings for different goals, maximize promotional rates, or diversify beyond CDIC insurance limits. Having separate accounts labeled “Emergency Fund,” “Vacation,” “Home Down Payment,” or “Tax Savings” helps with budgeting and tracking progress toward specific objectives. Opening accounts at multiple banks allows you to take advantage of promotional rates—when one bank’s promotion expires, you can move funds to another bank’s current offer. Multiple accounts also extend CDIC insurance protection; since coverage is per depositor per institution per category, spreading savings across different banks protects more than $100,000. The administrative considerations include tracking multiple accounts, managing different login credentials, and ensuring you meet any minimum balance requirements. Some banks like Tangerine, EQ Bank, and Simplii Financial make it easy to open multiple sub-accounts within their platform. Just avoid opening so many accounts that management becomes burdensome or you forget about smaller balances. A strategy of 2-4 accounts at different institutions provides good organization and insurance protection without excessive complexity.
How is interest calculated on high-interest savings accounts?
Interest on high-interest savings accounts in Canada is typically calculated using the daily balance method and paid monthly. Here’s how it works: the bank calculates interest on your account balance at the end of each day, then adds up these daily interest amounts at month-end to determine your total interest payment. For example, if you have $10,000 in an account earning 4% annually, the daily interest rate is approximately 0.011% (4% ÷ 365 days). Each day, you’d earn about $1.10, and over a 30-day month, you’d earn roughly $33 in interest. This daily calculation method benefits you because deposits start earning interest immediately and withdrawals stop incurring interest the same day. The monthly payment schedule means your interest gets added to your principal monthly, allowing compound growth—you earn interest on your interest. Some accounts calculate interest daily but pay quarterly or annually, slightly reducing compound benefits. When comparing high-interest savings accounts in Canada, verify the calculation and payment frequency. Daily calculation with monthly payment provides optimal returns. Also check whether interest rates are tiered (different rates for different balance levels) or flat (same rate regardless of balance), as this significantly impacts earnings if you maintain large balances.
Should I keep my emergency fund in a TFSA or regular savings account?
Keeping your emergency fund in a TFSA high-interest savings account is generally the optimal strategy if you have available TFSA contribution room and don’t need it for other investments. The TFSA provides all the benefits of a regular savings account—full liquidity, no access restrictions, CDIC insurance protection—while making all interest earnings completely tax-free. You can withdraw funds from a TFSA anytime without penalty, making it perfect for emergency funds that need immediate accessibility. Most major banks offering high-interest savings accounts also provide TFSA versions with identical rates. The main considerations are: (1) TFSA contribution room is limited ($7,000 for 2025 plus any unused room from previous years), so if your room is limited, you might prefer using it for higher-return investments rather than savings accounts; (2) withdrawn amounts restore to your contribution room the following calendar year, not immediately, so repeated withdrawals and redeposits could create room limitations; (3) if you’re using your TFSA for long-term investments, keeping emergency funds there might encourage you to inappropriately invest money you need accessible. For most Canadians, a TFSA high-interest savings account provides the best combination of accessibility, safety, and tax efficiency for emergency funds. If your TFSA is maximized with investments, then a regular non-registered high-interest savings account serves as your next-best emergency fund location.
Conclusion
Choosing among the top high-interest savings accounts in Canada in 2025 doesn’t have to be overwhelming. The accounts featured in this guide—EQ Bank, Tangerine, Simplii Financial, Motive Financial, Oaken Financial, Meridian Credit Union, Alterna Bank, Canadian Tire Bank, KOHO, and Neo Financial—all offer competitive rates, CDIC insurance protection, and no monthly fees, making them excellent options for growing your money safely.
The right account for you depends on your priorities: Do you want the absolute highest rate, even if it requires switching accounts periodically? Are physical branch locations important, or are you comfortable with digital-only banking? Do you value ethical banking practices, or is rate maximization your sole concern?
Remember that high-interest savings accounts form just one component of a comprehensive financial strategy. Use them for emergency funds, short-term savings goals, and parking cash between investments. For long-term wealth building, complement your savings accounts with TFSA contributions, RRSP investments, and diversified portfolios aligned with your risk tolerance and time horizon.
Take action today: Compare the accounts in this guide using your specific requirements, open an account with one of the top providers, and set up automatic transfers to build your savings consistently. Review your choice annually to ensure you’re still earning competitive returns. Your future self will thank you for maximizing every dollar you save.
The difference between earning 0.05% and 4% interest might seem small in monthly terms, but over years and decades, it represents thousands of dollars in additional wealth—money that could fund vacations, support your children’s education, or provide comfortable retirement security.
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