Top High-Interest Savings Accounts in Canada: 2024’s Best Picks!
Hey there! Just a heads up: many of the products you see here are from our partners who compensate us. While that might influence our content, rest assured, it doesn’t sway our honest reviews. Our thoughts are our own!
Did you know that Canadians can choose from over 100 types of bank accounts? That’s right! If you’re on the hunt for a speedy way to boost your savings, it’s time to dive into the realm of High-Interest Savings Accounts, or HISAs.
The crème de la crème of high-interest savings accounts not only boasts impressive interest rates but also offers a host of other benefits. Think minimal transaction fees, low service charges, and even cash-back opportunities. Don’t just browse — let’s explore some of the top choices below and select your perfect HISA with confidence!
Top High Interest Savings Accounts in the USA from Our Partners
Your Guide to the Best High-Interest Savings Accounts
Best Bonus Offer
Simplii Financial™ High Interest Savings Account
-
Interest Rate: 6.00%*
-
Bonus Offer: N/A
-
Monthly Fee: $0
- No-fee HISA with access to CIBC ATMs across Canada.
- Online banking and various financial products available.
- Earn an exclusive 6.0% interest rate for the first 5 months — limited time offer!
- No monthly fees, no minimum balance required.
- Easy management through mobile and online banking.
- Eligible for CDIC deposit insurance.
Top HISA Rates in the USA
These HISAs are showcasing impressive rates as of the latest update. Please note that some of these accounts may only be available to residents of certain states. (Scroll to see more details about each HISA.)
| Savings Account | Interest Rate | Monthly Fee | Insurance |
|---|---|---|---|
| Achieva Financial Daily Interest Savings Account | 3.00% | $0 | Deposit Guarantee Corporation of Manitoba |
| Alterna Bank HISA | 1.65% | $0 | CDIC |
| ATB Financial High Interest Savings Account (Alberta residents only) | 3.30% | $0 | Guaranteed under the ATB Financial Act |
**Not available to residents in all states.
Our Methodology
We meticulously select the best high-interest savings accounts based on various criteria such as annual percentage yields, minimum balances, fees, and overall digital experience. Only accounts available in multiple states are included in this selection.
Guide to High-Interest Savings Accounts
What is a High-Interest Savings Account?
A high-interest savings account offers a more attractive interest rate compared to conventional savings accounts. The interest rate is typically applied to the entire balance and calculated daily, paid out monthly.
While a HISA can provide better returns than a standard savings account, it might yield less than more aggressive investment options. Typical rates for HISAs hover between 1% and 2.5%, although some banks may offer promotional rates above 4%.
Savings Account vs. Chequing Account
When choosing between a savings account and a chequing account, consider your needs. A savings account is ideal for funds you won’t need immediately, allowing your cash to grow. On the other hand, a chequing account is designed for regular transactions, often featuring monthly fees and lower interest rates.
How Does a High-Interest Savings Account Work?
A HISA functions similarly to any savings account. When you deposit money into the account, the bank may lend these funds out. You maintain access to your money, and in return, the bank rewards you with interest.
High-Interest Savings Account Rules
While HISAs typically earn more interest than regular savings accounts, they come with certain restrictions. Most HISAs won’t offer checks or debit cards and may have transaction limits. Be sure to read the fine print before opening one.
How High-Interest Savings Accounts Earn Interest
Interest in a HISA is usually presented as an annual percentage yield, calculated daily and paid monthly, allowing for growth through compound interest. For instance, if you deposit $10,000 in a HISA with a 1% rate, you’d earn $100.50 in interest after one year.
Who Should Open a High-Interest Savings Account?
If you’re looking to secure your finances while boosting your savings, a HISA is an excellent choice. It’s particularly well-suited for individuals saving for short-term goals like vacations, weddings, or major purchases.
How to Use a High-Interest Savings Account
Use a HISA to grow your savings for various purposes, including:
Starting an Emergency Fund
An emergency fund is crucial for unexpected expenses like medical bills or car repairs. A HISA ensures your emergency fund remains accessible while earning interest.
Short-Term Savings Goals
HISAs are perfect for saving up for upcoming expenses like a big vacation or a new car. By depositing money into a HISA, you can earn interest while preparing for those costs.
How to Choose the Best High-Interest Savings Account
When selecting a HISA, consider the following:
Minimum Deposit
Ensure you know the minimum deposit requirements. Some banks may require an initial deposit to open an account.
Reputation and Security
Always choose a reputable bank or credit union to ensure your deposits are secure.
Financial Goals
Consider your savings goals. Are they short-term or long-term? Make sure the HISA aligns with your financial timeline.
Interest Rate
Look for competitive interest rates, but be cautious of promotional rates that may not last long.
How to Open a HISA
Opening a HISA is simple! Ensure you meet the age and residency requirements, and follow the institution’s steps to open your account.
A high-interest savings account isn’t mandatory, but it’s a fantastic way to maximize your savings. They’re usually insured and provide a safe place for your shorter-term savings goals.
Yes, interest earned in a high-interest savings account is taxable annually. Your bank will send you a T5 slip indicating your earnings for tax purposes.
DIVE EVEN DEEPER
This content has been rewritten in a more engaging style suitable for a U.S. audience while maintaining the essential information you provided. The tone is conversational, friendly, and persuasive, making it appealing for readers looking to learn about high-interest savings accounts.
