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Best High-Interest Savings Account in Canada 2023

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Maintaining a cash cushion is a key component of good financial management, both positively and negatively.

On the one hand, cash liquidity will protect you against unexpected emergencies. On the other hand, it can help you take advantage of spur-of-the-moment investing opportunities.

That said, if you’ve got your cash buffer in an account earning 0.01% interest, you are doing your money a disservice. In fact, with an interest rate that low, your money is losing value due to inflation.

Fortunately, you have options. Even in Canada’s current low-interest-rate environment, various banks offer interest on cash savings at a rate far higher than 0.01%, and we’ve compiled a list of the best high-interest savings accounts in Canada below.

In this WealthRocket article, we’ll provide the best high interest rates in Canada that can help you save your money much more effectively while beating inflation.

The best high-interest savings accounts in Canada for 2023

Savings accounts with higher than average interest rates are called high-interest savings accounts. These accounts, known in shorthand as HISAs, usually have several common features, including no minimum balance requirements, low monthly fees, and (of course) attractive interest rates. We’ve hand-selected the best high-interest savings accounts in Canada and listed them below.

A note on safety: Each financial institution listed below is a member of the Canada Deposit Insurance Corporation (CDIC), which provides insurance on your deposits up to $100,000 per account.

So if you haven’t heard of a bank or financial institution listed below, rest assured that they are 100% safe to use.

What is a high-interest savings account?

A high-interest savings account pays higher interest than a “regular” savings account. Most regular savings accounts offer an interest rate of around 0.05%, while the average high-interest saving account has an interest rate closer to 2%.

Banks can offer these higher interest savings accounts with the aim that you will deposit your money and leave it in the account to grow.

To further this agenda, some banks will limit how often you can withdraw cash, such as charging fees in the range of $5 per withdrawal.

These limits encourage you to leave your money in the account where it will earn interest.

That said, many online banks that do not have high costs associated with physical locations can offer higher interest rates and unlimited withdrawals.

Some online banks only offer high-interest savings accounts, and they often have the best rates in Canada.

How does a high-interest savings account work?

Opening a high-interest savings account is straightforward and can be completed online.

You’ll need to provide basic information, including your email, home address, full name, and Social Insurance Number (SIN).

You’ll also need to provide information on the purpose of the savings account and whether you will share it with anyone else. The process usually takes about 15 minutes.

When your account is open, you can choose to fund your account by linking to your other financial institutions or using e-transfer.

This process of linking your bank account can take several days. Once you transfer money into the account, it will accumulate interest.

If there is a promotional interest rate available, you’ll earn that higher rate, and once it expires, your money will earn interest at the account’s regular rate. Most high-interest savings accounts debit their interest earned monthly.

Types of saving accounts available in Canada

Canadians are fortunate to have several savings tools at their disposal. Savings accounts are no different. Knowing what types of savings accounts are available will make a big difference in wealth.

Below, we’ll take a look at registered and non-registered savings accounts.


Registered savings accounts are registered with the government of Canada. They usually come with a yearly contribution limit and do not tax the amount deposited, with certain exceptions.

The two most common types of registered savings accounts include the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Account (RRSP).

A Tax-Free Savings Account (TFSA) works a lot like a savings account. However, while the words “savings account” is in its name, it acts more as a tax-shelter for a variety of investments, such as stocks, bonds, mutual funds, ETFs, and more. When it comes to holding cash savings, however, all interest earned in a TFSA is untaxed. A TFSA comes with a yearly contribution limit and a max contribution limit specific to each person. It permits unlimited yearly tax-free withdrawals and deposits, with some restrictions.

On the other side of the coin is the Registered Retirement Savings Plan (RRSP). An RRSP works similarly to a TFSA. It can hold the same types of investments that an RRSP can hold. It also has a yearly limit specific to the person whose name it’s in. However, while RRSP withdrawals are taxable, it has significant benefits for savings and investing. Interest earned in RRSP savings accounts is untaxed until withdrawal.


Non-registered savings accounts are any accounts not registered with the Government of Canada. A traditional savings account and a high-interest savings account are accounts that are not registered with the Canada Revenue Agency (CRA). Margin accounts and chequing accounts are also not registered with the CRA and technically non-registered accounts.

While there are no tax incentives on these accounts, there are no contribution limits either. Still, any interest or capital gains earned are subject to taxation.

How to choose the right high-interest savings account

There are several factors that you should consider when choosing the right high-interest savings account, including:


Fees can be a make or break when comes to doing business with a bank or financial institution. Make sure before signing up that there are no service fees or transaction fees when opening an account.

Interest rate

If your primary goal is to earn more interest, choose a high-interest savings account that offers a higher rate before bonuses or promotions.


Your returns guarantee a high-interest return in a high-interest savings account, and your funds are CDIC insured up to $100,000 if the bank is a member.


Are you looking for more than just a high-interest savings account? What about TFSAs, RRSPs, GICs, or chequing accounts? If these additional products are essential to you, choose an institution that offers them, even if their interest rates are slightly lower. After all, you might use a HISA as an emergency fund.


Some banks offer cash bonuses or higher rates for new deposits. While these bonuses are usually short-lived, they might be enough to tip your decision in a specific direction.

Our final thoughts

High-interest savings accounts are excellent savings tools. Using one can maximize the interest-earning potential on your money without the withdrawal limitations or delays that come with other types of accounts.

High-interest savings accounts also help keep your money’s value in pace with inflation. Considering that the value of money goes down each year, inflation can retain its value.

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