Best High Interest Savings Accounts 2022

With current world events sending the stock market into a bit of a volatile situation, it’s the perfect time to consider some safer ways to invest your cash. High interest savings accounts (HISAs) can be a great way to keep your money safe and accessible in Canada. HISAs are, as the name implies, a savings account that allows you to earn interest on the amount you have saved in the account. Most HISAs accrue interest daily, which is definitely a bonus.

Anyone who has money in a savings account with a less than 1% interest rate can benefit from moving that cash into a Canadian HISA. While most HISA rates might not really seem high when compared to the earning potential of All-in-one ETFs and dividend stocks, compared to regular chequing and savings accounts, it’s definitely a better choice. Having a well-balanced financial plan means holding some of your money in something like a HISA.

In this article, we compare the best Canadian HISAs so you can maximize your earnings. With our help, you can increase your annual rate from a measly 0.20%, like that offered by some of the big banks, to as much as a whooping 2% annually. 

Compare Canada’s Best High Interest Savings Accounts

Enjoy a comparison of Canada’s leading online banks’ saving accounts. If you want to compare an online bank’s savings account to a Canadian big bank, you can find an additional comparison below.

Star Rating4.9 / 5
Free Monthly Transactions

Unlimited

Interest Rate

2.00%

No Available Promotion

Canada's Best Online Bank. Excellent savings interest rates, superb platform, incredible value.
Star Rating4.6 / 5
Free Monthly Transactions

Unlimited

Interest Rate

1% (but with an initial 5 months teaser rate of 2.50%)

No Available Promotion

Runner up to EQ Bank. Used to have better rates. Good credit card options.
Star Rating4.4 / 5
Free Monthly Transactions

Unlimited

Interest Rate

2.25%

No Available Promotion

New and very promising product with excellent interest rate - need time to see how it holds up.
Star Rating4.1 / 5
Free Monthly Transactions

Unlimited - but with monthly account fee

Interest Rate

1.35%, with special promo rate of 2.55%

No Available Promotion

Best promotion for new savings account in 2022.
Star Rating3.7 / 5
Free Monthly Transactions

Unlimited

Interest Rate

0.40% (4.75% Teaser)

Excellent promo and good all around product, but doesn't excel at any particular area.
Star Rating3.5 / 5
Free Monthly Transactions

Unlimited

Interest Rate

1.32% for short-term accounts

No Available Promotion

Good option for Quebec residents. Only savings account and GIC with no TFSAs or RRSPs, good rates but both lower than EQ's long term.
Star Rating3.4 / 5
Free Monthly Transactions

2

Interest Rate

3%

No Available Promotion

Great interest rates, but no free interac eTransfer ($1 each), only allows 2 monthly withdrawals and has a terrible mobile app.
Star Rating3 / 5
Free Monthly Transactions

2

Interest Rate

1.85%

No Available Promotion

Excellent chequing account but not the best savings account option, lower rates overall with GICs in particular.

Canada’s Best Saving Accounts List by Interest rate

View our simple saving account interest rates comparison below.

  1. EQ Bank2% – Best Rated Savings Bank Account
  2. Oaken Financial (CDIC insured) – 3% Currently, subject to change without notice, but consistently decent.
  3. Motive Bank – As high as 3% – but with very high transaction fees
  4. Outlook Financial (DGCM insured) – 1.25%
  5. BMO Savings Builder – (CDIC insured) 0.50% (requires $200/month deposit)
  6. Canadian Big Banks ~ 0.20% – 0.50%
  7. Scotiabank Momentum PLUS Savings Account- 1.40% for Preferred package / 2.55% for Ultimate
  8. Alterna Bank (CDIC insured) – 0.35%
  9. Tangerine – 1% (but with a 2.50% teaser for first 5 months)
  10. Simplii (CDIC insured) – 0.40% (4.75% teaser rate until October 31st, 2022)
  11. Motusbank– 1.85%
  12. Neo Financial – 2.25%

High Interest “Teaser Rate” vs “Everyday Rate”

If you are shopping around and comparing Canada’s top saving accounts, you should know there are two types of rates:

  1. The ‘teaser rate‘ (often granted for six monthly or less, to get your money in the door).
  2. The everyday rate

The reason these teaser rates are so popular is that the banks are betting that you’ll simply see the highest interest rate number, and go there.  Even if you intend to switch over after your six months, it’s generally a good bet to assume that you’ll be too lazy to.  This is why subscriptions and streaming services are so profitable!

So when you see an online bank such as Tangerine offer an eye-popping rate that is higher than anything else out there – just understand that this is a temporary rate. There is nothing wrong with taking advantage of that rate – and we think Tangerine is a very solid banking option (read our full Tangerine review) – but just be aware.

The most notable thing to take from this list is that Canada’s major banks simply are not offering a competitive high interest savings account product at the moment. They are banking on the massive strength of their brands and the convenience of their retail banking locations to attract Canadians – not competitive interest rates.

Best Saving Accounts in Canada for 2022 – Detailed Reviews:

#1 EQ Bank – Our Top Canadian High Interest Savings Account

EQ tops the chart of our review of Canada’s best high interest savings accounts. There are more than a few good reasons we recommend it, namely for it’s high interest rate and low fees. Let’s take a better look at what makes it great:

EQ’s Savings Plus Account 

Interest Rate: 2%

Monthly Fees: $0

Minimum Balance: None

Interac E-Transfer Fees: $0

Other Benefits: Free bill payment, free electronic fund transfers. We’ve got even more information on our top rated HISA option in our EQ Bank Review. Not only is it our top HISA choice, but it’s also one of our top Canadian online bank picks. Find out why in The Best Online Banks in Canada 2022.

#2 Scotiabank Momentum PLUS Savings Account – The Best Big Bank High Interest Savings Account

In the financial world, there are seemingly limitless options when it comes to where to save and earn on your money, so we can understand why some like to keep things simple. 

If that’s you, and you already have an account at Scotiabank, then you just might want to open up a Scotiabank Momentum PLUS account to make things easy, and earn a few bucks while you’re at it.

Right now until September 30, 2022, Scotiabank has got a great promo going on, which will give you a highly competitive return on your HISA.

Scotiabank Momentum PLUS Savings Account 

Interest Rate: 1.35% regular interest + earn a potential 2.55% interest when you take advantage of their current promotion.

Monthly Fees: $0

Minimum Balance: None

Interac E-Transfer Fees: $1

Other Benefits: Unlimited self-service transfers, automatic savings deposits available

When you couple Scotiabanks HISA offer with the fact that it’s one of The Best Canadian Chequing Accounts, it’s a very competitive option.

While you’re at it, you can add the Momentum credit card to your Scotiabank bucket, and earn some cash back from them too. See our full review of the card at Scotia Momentum Visa Infinite Card Review.

#3 Tangerine High Interest Savings Account – The Former Champ

Once upon a time, Tangerine, formerly owned by ING, was the hottest name in the HISA game. Over the years as competition has grown, it hasn’t necessarily been able to keep up.

That doesn’t mean it’s not worth a look, as Tangerine does have some definite advantages to take note of, including its current promotional offer.

Tangerine Savings Account 

Interest Rate: 1% plus a chance to earn 2.50% for the first 5 months AND $300 when you open an account and set up direct deposit.

Monthly Fees: $0

Minimum Balance: None

Interac E-Transfer Fees: $0

Other Benefits: Free daily chequing transactions, automatic savings deposits available.

While the regular interest rate alone isn’t the most attractive on our list, the added promos and convenience for Tangerine customers definitely increase its appeal.

Tangerine also happens to be one of our top choices for Best Canadian Chequing Account. Check out more about Tangerine and what they offer at our full Tangerine Bank Review.

#4 Oaken Financial High Interest Savings Account

Like some of its other competitors, Oaken Financial specializes in online banking, so you won’t easily find physical branches if you happen to need one. That is what keeps the fees low and the interest rates high with online banks. 

Oaken Financial is still a good option in our opinion because of its strong interest rate and low fees. Plus, it offers Guaranteed Investment Certificates (GICs), which allows you to earn a higher rate if you are willing to give up access to your money for a certain period of time, if that’s something you’re interested in.

One of the drawbacks of Oaken compared to some of those higher on the list is that it does not offer chequing, and it only offers limited registered account investment options, and does not offer any non-registered investment options.

Oaken Savings Account 

Interest Rate: 3%

Monthly Fees: $0

Minimum Balance: None

Interac E-Transfer Fees: $0

Other Benefits: Unlimited free transactions, automatic contributions

Oaken is definitely a top choice here for it’s winning combination of a competitive interest rate and the fact that it has relatively few fees overall.

#5 Motive Financial High Interest Savings Account

When EQ Bank cut their interest rate to 1.10%, it temporarily left Motive at the top. While it was nice while it lasted, Motive Financial moved down the list when EQ upped its rates again.

While its interest rate is great (currently), we’ve received comments that its platform and app are, so if you don’t want a side of frustration with your savings, it might be better to avoid Motive Financial for now.

Motive Savvy Savings Account 

Interest Rate: 3% with a balance up to $5,000,000, and 0.50% for balances over $5,000,000

Monthly Fees: $0

Minimum Balance: None

Interac E-Transfer Fees: $1

Other Benefits: 2 free monthly withdrawals 

Find out more about Motive Financial’s banking services in our full Motive Financial Review.

#6 Motusbank High Interest Savings Account

To end our list, we’ll take a look at another online bank, motusbank, which is a fairly new addition, launching in 2019. The good news is that it’s backed by Meridian Credit Union, not to mention the fact that it’s fully CDIC insured, so you have an element of safety to balance that out.

Another added bonus motusbank offers is a 0.50% interest earning chequing account, which is not a common feature of either online banks or Big Banks.

Motusbank Savings Account 

Interest Rate: 1.85%

Monthly Fees: $0

Minimum Balance: None

Interac E-Transfer Fees: $0

Other Benefits: Unlimited e-transfers, automated savings feature

motusbank also offers great rates on registered accounts, making it an attractive options for your savings, chequing, TFSA and RRSP accounts. Have a look at our full Motusbank Review to find out more about its offerings.

High Interest Savings Account in Canada – Pros & Cons

Here are the pros and cons of HISAs. 

Pros:

  • Offers a safe way to earn interest
  • Interest compounds daily instead of annually
  • Your money will be easily accessible

Cons:

  • The interest rates do not offer a way to build long-term wealth
  • You may be charged high fees when you withdraw money from your HISA
  • Interest rates may go down with no warning

While we definitely recommend things like Dividend Investing or Canadian ETFs as a better alternative to HISAs, they definitely have their place in certain situations, especially as banks like EQ bank offer as much as 1.5% annual interest rate. 

Other Criteria for Judging Canada’s Best Saving Accounts for 2022

While EQ is head and shoulders above the field when it comes to everyday high interest savings account rates, as well as GIC rates, that’s not the only criteria one should use when choosing a high interest bank account.

The good news is that all of the options listed above are “safe” in every sense a bank account can be safe.  They all employ excellent security features and are guaranteed by solid insurance backing.  The Manitoba-based credit union options are backed by the Deposit Guarantee Corporation of Manitoba (DGCM), whereas the larger online banking options (including EQ Bank) are backed by the Canadian Deposit Insurance Corporation.  These insurance agreements mean that even if the banks were to go bankrupt, your money is insured and will get back to you.  In the case of the DGCM there is no account limit, whereas for the CDIC there is a $100,000 limit per account.  Some folks like to skirt this rule by having a high-interest account for themselves, their significant other, a TFSA account for each, a GIC for each, etc.  All of these are considered separate accounts by the CDIC.

Long story short: They’re All Really Safe!

Some people want to keep much of their banking in one place (even though it’s quite fast and easy to shift money back and forth with online banking) and so being able to offer loans and/or mortgages, plus accessing a debit card becomes important.

Another comparison point is fees for services like eTransfers, foreign exchange currency transfers, overdraft fees, or fees for automated bill payments.

When it comes to our most recommended option of EQ Bank, they simply cannot be beat on the low fee and high interest rate side of things.  They even launched a joint account option recently.  However, they do not offer certain services such as a debit card at the time of this writing.

Check out our in-depth EQ Bank Review to see how we use Canadian banking hacks to maximize our credit card rewards points, our high interest savings account earnings, and the utility of a broader bank account in tandem with EQ.

Your Tax Free Savings Account (TFSA) Is Really a TFIA

A lot of folks seem to place an abnormally high value on being able to hold their high interest savings account within a TFSA or an RRSP.  

This doesn’t make a ton of sense the vast majority of the time.  If you’re looking at investing for the long-term, you should be building a bonds/stocks portfolio to shelter in your RRSP or TFSA.  In fact, I’ve been saying for years that calling the fun financial tool a Tax Free Savings Account was a massive branding mistake on the part of the government.  It should have been called a Tax Free Investment Account.  Just that small name change – when combined with Canada’s collective financial illiteracy – has been enough to encourage broad misuse of the tax advantages.

About the only exceptions to this rule that I can think of off the top of my head, would be if you are relatively early in your savings journey, and are saving to buy a car or a housing down payment.  In that early savings situation, if you have no long-term investment, and are clearly going to need the money in the next five years, then it makes sense to use your tax shelter for the relatively small returns generated by a high interest savings account.

We’ll Let EQ Bank Speak for Themselves

When it comes to consistently rewarding clients with the everyday best high interest savings account rate in Canada, EQ Bank simply stands head and shoulders above their competitors.  Their low fees can’t be beat, as they pass their cost savings on to Canadians. 

If you want to play the teaser rate shifting game, you will likely be able to get a slight edge on the everyday EQ savings rate – but personally, I’ve only got so many hours in each day, and I do not need to spend them constantly opening new bank accounts and shifting money around.

Check out what EQ Bank had to say about their products and future projects when they were interviewed at the Canadian Financial Summit by MDJ’s own Kyle Prevost.

Canadian High Interest Savings Account – FAQ

Summary

It’s clear that since our last update, the rates for quite a few high interest savings accounts have increased. That’s good news for you. It means that you have a number of viable options to keep your money safe and accessible during uncertain times. It also provides you a bit of a safety net against inflation. 

Our top choice for the best short term savings account for its quality and competitive interest rate is EQ. For long term savings, go for dividend investing and ETFS for much higher returns.

It’s really never been easier to open a high interest savings account, so do yourself a favor and open one today! 

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FT

FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
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AnotherLoonie
2 years ago

I’m happy to see you also recommend EQ! I’ve also had great experiences with them. It’s a pain in the butt to switch bank accounts frequently to try to get the best rate. That’s why I keep an account with EQ. For years they’ve given me an interest rate that’s been very stable and much higher than the average.

Francois
2 years ago

Achieva (https://achieva.mb.ca/) at 1.75% is another Manitoba option.