Best Savings Accounts Canada

A savings account can be an excellent way to ensure your funds are safe while also earning interest over time. Canada offers a plethora of savings account options, each with its unique advantages and features. In this article, we will explore some of the best savings accounts in Canada, taking into consideration factors such as interest rates, account features, and financial institution reputation.

1. EQ Bank Savings Plus Account

EQ Bank is an online-only bank that offers a competitive interest rate on its Savings Plus Account, making it a top choice for those looking to maximize their savings. As of present, the account offers a non-promotional interest rate of 2.50% – one of the highest rates available in the Canadian market. EQ Bank’s Savings Plus Account has no monthly fees, no minimum balance requirements, and comes with free Interac e-Transfers, making it convenient and cost-effective for everyday use.

Additionally, this account allows for unlimited transactions, bill payments, and electronic fund transfers. EQ Bank is a member of the Canada Deposit Insurance Corporation (CDIC), so deposits are insured up to $100,000 per customer. The only drawback is that EQ Bank does not currently offer joint accounts or access to a physical branch network.

2. Tangerine Savings Account

Tangerine, a subsidiary of Scotiabank, offers a high-interest savings account with no monthly fees and no minimum balance requirements. The Tangerine Savings Account provides an interest rate of 1.00% as a standard rate, with promotional rates often available to new customers for a limited time, such as 2.10% for the first five months.

Tangerine also offers a suite of other banking products, including chequing accounts, credit cards, and investment options, making it a great choice for those looking to manage all their finances with one institution. Tangerine customers can access their account via online banking, a mobile app, or through Scotiabank’s network of ATMs. Deposits are insured by CDIC up to $100,000.

3. Alterna Bank High-Interest eSavings Account

Alterna Bank is a digital bank owned by Alterna Savings, a well-established credit union in Canada. The High-Interest eSavings Account boasts a competitive interest rate of 0.90% and has no monthly fees or minimum balance requirements. This account offers unlimited free bill payments, transfers, and debits, as well as two free Interac e-Transfers per month.

Alterna Bank customers can access their accounts online or through a mobile app, and deposits are insured by CDIC up to $100,000. Although Alterna Bank does not have a physical branch network, customers can access surcharge-free ATMs across Canada through THE EXCHANGE Network.

4. Simplii Financial High-Interest Savings Account

Simplii Financial, a direct banking subsidiary of CIBC, offers a High-Interest Savings Account with a competitive interest rate of 0.40% and no monthly fees or minimum balance requirements. Simplii Financial occasionally offers promotional rates to new customers, such as 5%+ for the first four months. They also offer higher interest rate tiers depending on the amount of deposit, up to 2% for the largest threshold.

This account includes unlimited free transfers to other Simplii accounts, and customers have access to CIBC’s extensive network of ATMs. Simplii Financial also provides a comprehensive suite of banking products, including chequing accounts, credit cards, and mortgages. Deposits are insured by CDIC up to $100,000.

5. Motive Financial Savvy Savings Account

Motive Financial, a division of Canadian Western Bank, offers the Savvy Savings Account, which features a competitive interest rate of 1.25%. This account has no monthly fees or minimum balance requirements, making it an attractive option for those looking to grow their savings with a higher interest rate.

Motive Financial provides customers with unlimited free transactions, including bill payments, transfers, and deposits. However, it is important to note that only two free withdrawals are permitted per month, with a fee for each additional withdrawal. Motive Financial customers can access their accounts online or through a mobile app, and deposits are insured by CDIC up to $100,000.

6. RBC Royal Bank High-Interest eSavings Account

The RBC High-Interest eSavings Account is an excellent choice for those who prefer to bank with one of Canada’s “Big Five” banks. This account offers a competitive interest rate of 1.50% with no monthly fees or minimum balance requirements. RBC customers have access to the bank’s extensive network of ATMs and branches across Canada.

The RBC High-Interest eSavings Account includes one free debit transaction per month, with a fee for each additional transaction. However, customers can make unlimited free transfers to other RBC accounts. RBC also offers a comprehensive suite of banking products and services, including chequing accounts, credit cards, loans, and investment options. Deposits are insured by CDIC up to $100,000.

Summary

When it comes to choosing the best savings account in Canada, it’s essential to consider factors such as interest rates, account features, and the reputation of the financial institution. Online-only banks and digital banking divisions often provide higher interest rates and lower fees, making them an attractive option for those looking to maximize their savings. However, traditional banks may offer more comprehensive banking services and access to physical branches, which some customers may prefer.

Ultimately, the best savings account for you will depend on your individual needs and preferences. Be sure to research and compare various options to find the one that aligns with your financial goals and offers the best combination of features and benefits.