If you’ve applied for a mortgage or loan in the past year, you might have noticed something: debt interest rates keep getting higher, but savings account interest rates in Canada — at least those from the big banks — are staying low.
Frequently Asked Questions
Savings interest rates don’t typically keep pace with debt interest rates because there is little pressure on the major Canadian banks to offer higher rates. That said, there are plenty of online banks that do offer higher interest rates. You can also take advantage of promotional rates offered by larger banks.
Consider an online bank like EQ Bank or Alterna Bank for the best interest rates on savings accounts. These banks are insured by the same deposit protection (CDIC) as larger banks like Scotiabank and TD.
Some banks have raised their deposit rates recently, but those banks are usually smaller, digital institutions looking to attract savvy Canadians. Other larger banks that rely primarily on customer loyalty haven’t raised rates. Instead, they’re providing the convenience of having all of your financial products with one provider.