| Bank | Rate | Notes |
|---|---|---|
| 4% | No minimum deposits. No monthly fee | |
| Wealthsimple | 4.5% | Minimum 3.5% interest |
| RBC | 5.4% | No minimum balance, 3 months |
| EQ Bank | 5.0% | No minimum balance, no fee |
| Saven Financial | 3.85% | No minimum balance, no fee |
| Canadian Tire | 3.70% | No minimum balance, no fee |
This High Interest Savings Account (HISA) calculator helps you compare different savings options in Canada. It calculates the interest you could earn based on your initial deposit and the interest rate offered by various banks. The tool also provides a 5-year projection to help you visualize the potential growth of your savings over time.
This site was last updated: August 24, 2024
A high-interest savings account (HISA) offers a more attractive interest rate than standard savings accounts. The interest is applied to the entire balance, typically calculated daily and paid out monthly. However, HISAs may offer a lower rate of return compared to other investment options. Current rates for Canadian HISAs generally range from 1% to 2.50%, with some promotional rates above 4%.
A savings account is generally used for funds you don’t intend to spend immediately, making it ideal for stashing cash and earning interest. A chequing account, on the other hand, is designed for everyday transactions like paying bills or receiving paycheques. Chequing accounts often have monthly fees and lower interest rates.
A HISA works like any other savings account, where you deposit money, and the bank pays you interest for keeping your funds with them. The interest is usually calculated daily and paid monthly. Unlike regular savings accounts, HISAs may come with more rules and fewer perks, such as no cheques or debit cards.
HISA interest is usually presented as an annual percentage yield (APY), but it's typically calculated daily and paid monthly. This allows you to earn compound interest, helping your savings grow faster.
Yes, the interest earned in a HISA is considered taxable income by the Canada Revenue Agency. You will need to report the interest earned on your tax return, which can be found on a T5 slip provided by your financial institution.
A TFSA allows you to save money and invest in other products like stocks, mutual funds, and ETFs, with tax-free returns. In contrast, a HISA is simply an account where you store money and earn a higher rate of interest, but the interest earned is taxable.
While both HISAs and RRSPs are used to grow savings, RRSP contributions reduce your taxable income, potentially lowering your tax bill. The income earned in an RRSP is tax-free until you withdraw it, at which point it becomes taxable.
A GIC requires you to deposit money for a set period in exchange for a guaranteed interest rate. With a HISA, you can withdraw your money anytime, whereas a GIC may charge penalties for early withdrawal.
A HISA is suitable for anyone looking to boost their savings with minimal risk, especially those saving for short-term goals or emergency funds.
When choosing a HISA, consider factors like minimum deposit requirements, the institution’s reputation, interest rates, and service fees. Some accounts offer higher promotional rates or fee waivers based on certain conditions.
Opening a HISA is usually quick and easy, often taking just a few minutes online. You'll need to provide personal information, proof of identity, and your SIN. Some institutions may have specific residency or age requirements.