Compare Savings Accounts in Canada and Find the Best Accounts for You

The EQ Notice Savings Account stands out with no monthly fees, no minimum balance, and high interest earning potential. Account holders can choose whether they'd like a 10 Day Notice Savings Account or a 30 Day Notice Savings Account. Your choice determines how much notice you need to provide for withdrawals. The 30 Day Notice Savings Account earns the highest interest on your balance. Additional perks include free unlimited deposits, withdrawals, and CDIC protection.

Verdict: If you're content with waiting 10 to 30 days to access your funds, the EQ Notice Savings Account is a solid option, especially if you're willing to save longer to collect higher interest.

The Neo Savings Account allows account holders to pocket some of the highest interest rates on their balance without any promo codes, account switching, or wait times. With this account, your interest rate depends entirely on your balance. The account offers instant access and seamless control, allowing members to move or spend money whenever they'd like. Want to disperse your savings? The Neo Savings Account allows you to open up to 10 accounts to organize, store, and grow your funds. Not to mention, opening a joint account enables two account holders to reach higher interest rates even faster.

Verdict: The Neo Savings Account provides the highest interest earning potential, as long as you're willing to maintain a hefty balance.

The Wealthsimple Savings Account provides a small welcome bonus upon account opening and funding alongside some high interest rates, depending on your client tier. Account holders also enjoy no monthly fees, minimums, ATM fees, Foreign Transaction fees, or overdraft penalties. Unlimited transactions are also available for e-Transfers, bill payments, and debit transactions. Go ahead and open up to eight individual and eight joint accounts to organize funds towards specific savings goals.

Verdict: The Wealthsimple Savings Account pairs high-interest rates with a small welcome bonus to help yoget started.

After you abide by the initial deposit requirement, the Bridgewater Bank Smart eSavings Account unlocks a competitive interest rate, no minimum ongoing balance, pre-authorized contributions, and one free withdrawal per month.

Verdict: The Bridgewater Bank Smart eSavings account offers ease of use, flexibility, and allows for a set-it-and-forget-it mindset when it comes to automized savings.

For the first few months of membership, the Scotiabank Momentum Plus Savings Account provides an impressive interest rate when you pair a Scotiabank Ultimate Package with your account. This intro offer is accompanied by no monthly account fees, no minimum balance requirements, unlimited self-service transfers, and the opportunity to save for multiple goals in one account. While the all-time interest rate on your balance isn't quite as high, the longer you save, the higher your interest rate grows. You can also set up an automatic savings plan for fuss-free contributions.

Verdict: The Scotiabank Momentum Plus Savings Account gives you amazing value within the first few months of membership.

The Tangerine Savings Account also features a tempting intro offer for your first handful of months of account ownership. All you have to do is become a client and open an eligible additional account. The savings account itself also comes with no monthly fee, no minimum balance requirement, and an Automatic Savings Program to contribute funds without having to think about it. The real kicker, however, is the fact that if you decide to apply for a Tangerine credit card, you can also unlock an additional customizable cash back category when you deposit your earnings into your Tangerine Savings Account.

Verdict: The Tangerine Savings Account is best for savers who want to take advantage of high promotional rates and receive a third cash back category of their choosing on an accompanying credit card.

The Simplii Financial High Interest Savings Account offers its own generous intro interest rate for a limited time. Afterwards, the interest on balance drops significantly. Luckily, this account also comes with no monthly or transaction fees, and no minimum balance requirements, plus you can set up automatic deposits for thought-free contributions.

Verdict: The Simplii Financial High Interest Savings Account is ideal for those who want to take advantage of high promotional interest rates and avoid big banks.

Banks often use teaser offers to attract new customers. While these promotions can provide a great initial boost, always read the fine print. Most importantly, Ensure the base rate remains competitive once the promotionl period ends.

In the current ecosystem, online-only banks and fintech platforms typically offer significantly higher interest rates than traditional big banks. In addition to base interest rates, you'll also want to keep an eye on:

• Daily Compound Interest: Look for accounts that compound interest daily rather than monthly. Daily compounding puts money back into your balance faster, allowing you to earn interest on your interest more effectively.
• High Tiered Rates: Some accounts only pay the top-tier rate on the first $10,000, while others require a massive minimum balance (like $5,000+) to unlock a better rate.

A savings account is only useful if you can actually use the money when you need it. Look for:

• No Transaction Fees: Some savings accounts charge a fee for every withdrawal or outgoing transfer. Look for High-Interest Savings Accounts (HISAs) that offer unlimited free transfers.
• In-Network ATM Withdrawals: You may also want to ensure that your institution has plenty of in-network ATMs available to you. Withdrawing savings from an out-of-network ATM often incurs charges from both your bank and the one that operates the ATM.
• Fast Withdrawals: If you want fast access to your money, especially in the case of an emergency, select a savings account that offers immediate withdrawals.

Safety is the foundation of saving. In Canada, your money should be protected by one of two systems:

• CDIC (Canada Deposit Insurance Corporation)
• Provincial Coverage

A savings account isn't just a virtual vault for your cash; it's a financial tool. Look for digital features like:

• Automated Savings Tools: Dropping extra cash into your savings bucket without a second thought.
• Savings Goals Features: Many accounts allow you to create sub-accounts or visual folders within one balance. This lets you label money for specific needs, like a "Home Down Payment," "New Car," or "Emergency Fund," without the hassle of opening multiple separate accounts.
• Card Controls and Security: Think in-app card locking and instant alerts.

Many big bank promotional rates expire after a few months, leaving behind a disappointing permanent base rate. Certain promotions also only apply to new deposits, if you already have money with that bank, you might not get the promotional rate on your current balance.

There are a handful of potential fees tacked onto Canadian savings accounts. Luckily, unlike chequing accounts, monthly account fees are uncommon among most savings accounts in Canada.

Some accounts require a Minimum Daily Balance (e.g., $1,000 or $5,000) to earn the advertised interest rate. If your balance dips below that minimum, even for one day, you could lose your interest for the entire month.

At first glance, interest tiers appear rewarding, but the math can be deceptive. There are two main types:

• Whole Balance: You earn one rate on your entire balance once you hit a certain threshold.
• Incremental (Partial): You earn 1% on your first $5,000 and 3% on everything above $5,000. If you have $5,100, you aren't earning 3% on the whole amount,you’re earning a tiny bit of extra interest on that last $100.

While collecting interest on your savings sounds exciting, note that your earnings can be taxed in Canada. Any interest earned on a standard savings account is considered taxable income by the CRA.

How it Works: A low-risk option where you lend money to a financial institution for a fixed term. As a result, the bank guarantees you'll get your initial deposit back with a fixed amount of interest.

The Catch: Cash is typically locked in until the end of the fixed term. Early withdrawal is either impossible or comes with penalties.

How it Works: A more flexible GIC that allows you to withdraw your money before the term is up without paying a penalty.

The Catch: Slightly lower interest rates than non-cashable GICs.

How it Works: A fund that pools investor money to access high bulk interest rates at big banks. You can buy or sell shares for cash any time the stock market is open.

The Catch: You may pay trading commissions and a small management fee (MER). Unlike bank accounts, they are not covered by CDIC insurance, and the interest rate can change without notice.

How it Works: Primarily used for daily transactions, some chequing accounts provide some interest on your balance.

The Catch: That said, these returns are typically lower than those offered by high-interest savings accounts.

See More: Compare Chequing Accounts in Canada

How it Works: There are a few government-regulated savings accounts that protect your savings against taxes, including:

• TFSA (Tax-Free Savings Account): All interest and investment gains accumulated in this account are tax-free.
• RRSP (Registered Retirement Savings Plan): Contribute now to reduce your taxable income, and only pay tax when you withdraw the money during retirement.
• FHSA (First Home Savings Account): Contributions also reduce your taxable income and withdrawals are tax-free when you use them for a first home purchase.

The Catch: Ultimately, regular savings accounts offer more liquidity if you need access to your cash in a pinch.