Best Savings Accounts in Canada for 2024: HISAs, TFSAs, RRSPs
Dec 21, 2024Choose the best savings account from the top registered and non-registered plans in Canada by comparing interest rates, fees and convenience.
The best savings accounts have competitive annual percentage yields (APYs). The higher the APY, the more money you’ll earn over time.
Our picks for best savings account interest rates
The accounts with the best interest rates for non-registered HISAs, TFSAs and RRSPs as of Dec. 11, 2024, are:
Simplii Financial High Interest Savings Account
Scotiabank MomentumPLUS Savings Account
Tangerine Savings Account
Motive Savvy Savings Account
CIBC eAdvantage Savings Account
RBC High Interest eSavings
KOHO Spending and Savings Account
PC Money Account
Tangerine Tax-Free Savings Account
WealthONE Tax-Free Savings Account
Saven Financial TFSA
Motive Financial TFSA Savings Account
Achieva Financial TFSA Savings Account
Canadian Tire Tax Free® High Interest Savings Account
Steinbach Credit Union TFSA Variable Savings
Tangerine RSP Savings Account
National Bank Cash Advantage Solution RRSP
WealthONE RRSP Savings Account
Saven Financial RRSP
Achieva Financial RRSP Savings Account
Steinbach Credit Union RRSP Variable Savings
MAXA Financial RRSP Savings
Why trust NerdWallet
NerdWallet follows strict editorial guidelines to remain objective in our evaluations and ensure accuracy for our readers. Evaluations are based on a proprietary formula that factors in the overall value and benefits of each savings account.
Nearly 40 financial institutions, including traditional banks, credit unions and online banks reviewed by our banking specialists.
Over 180 currently-available savings accounts, including high interest savings accounts (HISAs), tax-free savings accounts (TFSAs) and registered retirement savings plans (RRSPs) examined to determine their eligibility for our list.
Earn up to 10x more than other Canadian banks with a Motive Savvy Savings® account. New clients earn 5.35%, a 2.15% bonus on top of your regular interest rate of 3.20% for 120 days. Offer ends. January 31, 2025.
The best HISAs in Canada
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Product detailsThe best TFSA HISAs in Canada
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Product detailsThe best RRSP HISAs in Canada
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Product detailsEarn up to 10x more than other Canadian banks with a Motive Savvy Savings® account. New clients earn 5.35%, a 2.15% bonus on top of your regular interest rate of 3.20% for 120 days. Offer ends. January 31, 2025.
Methodology
BACK TO TOPNerdWallet Canada selects the best savings accounts based on several criteria. Factors in our evaluation methodology include annual percentage yields, minimum balances, fees, digital experience, access to other services, and more. Both registered TFSAs, RRSPs and non-registered savings accounts that are available in more than one province are considered for this list.
Honourable mentions
If you’re comfortable managing your money digitally, consider these online-only accounts from virtual banks.
Savings accounts from online-only banks
Non-registered savings from online banks
Simplii Financial™ High Interest Savings Account
Tangerine Savings Account
Motive Savvy Savings Account
KOHO Spending and Savings Account
PC Money Account
EQ Bank Personal Account
WealthONE High Interest Savings Account
High-interest TFSAs from online banks
Tangerine Tax-Free Savings Account
WealthONE Tax-Free Savings Account
Saven Financial TFSA
Motive Financial TFSA Savings Account
Achieva Financial TFSA Daily Interest Savings Account
Canadian Tire Tax Free® High Interest Savings Account
Steinbach Credit Union TFSA Variable Savings
MAXA Financial TFSA High Interest Savings Account
High-interest RRSPs from online banks
Tangerine RSP Savings Account
WealthONE RRSP Savings Account
Saven Financial RRSP
Achieva Financial RRSP Savings Account
MAXA Financial RRSP Savings
Steinbach Credit Union RRSP Variable Savings
Outlook Financial RRSP High-Interest Savings Account
Things to know about savings accounts
What is a savings account?
A savings account is a common type of deposit bank account that earns interest on its balance.
Savings accounts can make it easier to achieve specific savings goals, such as a new car, a wedding, or an emergency fund. Since savings accounts earn interest, they help your money grow over time.
Types of savings accounts
There are a number of different types of savings accounts available to Canadians. Most are fairly simple, while others have features designed to meet specific needs. Options include:
Basic savings accounts: Earn a modest interest rate.
High-interest savings accounts (HISAs): Earn a higher rate of interest; may come with more restrictions.
Registered savings accounts: Receive tax benefits with TFSAs and RRSPs, which are registered with the Canada Revenue Agency (CRA).
Online savings accounts: Earn competitive interest rates with low or no fees at one of Canada’s virtual banks.
Joint savings accounts: Accessible by more than one person, such as a married couple.
Kids savings accounts: Available to children and teens; different eligibility requirements, features and fees than adult accounts.
Senior savings accounts: Receive discounts and benefits for senior citizens.
Foreign currency savings accounts: Save in U.S. dollars without exchanging currency.
Business savings accounts: Separates business savings from personal savings.
Comparing HISAs, TFSAs and RRSPs
Here’s a breakdown of basic similarities and differences between each kind of savings account:
HISAs | TFSAs | RRSPs |
|---|---|---|
Uses | ||
|
|
|
Eligibility | ||
May be at least 18 years of age and a Canadian with a Social Insurance Number (SIN), unless terms mention otherwise. | Must be at least 18 years of age and have a Social Insurance Number (SIN). | Must be under 71 years of age, earn an income and be a Canadian resident paying income tax. |
Contribution limits | ||
None, in most cases. | The set annual TFSA contribution limit for 2025 is $7,000 — you may have additional room based on past contributions. | The RRSP contribution limit for 2024 tax year is $31,560. It is 18% of your previous year’s earned income — up to an annual maximum limit set by the CRA, plus any unused contributions from past years. |
Withdrawals | ||
Generally, no restrictions on withdrawals. Fees may apply. | If you withdraw from your TFSA, you get that contribution room back the following year. | Once you withdraw from your RRSP, you lose that contribution room and the potential for compound growth on your savings. Plus, withdrawals are subject to withholding tax. |
Taxes | ||
Earnings are taxed. |
|
|
Time limts | ||
No time limits. | No time limits. | You can contribute to an RRSP up until December 31 of the year in which you turn 71. After this point, you must transfer the funds to a registered retirement income fund (RRIF) or an annuity, or withdraw the entire amount in a lump sum and pay withholding tax. |
How savings accounts work
When you deposit your money in a savings account at a bank or credit union, you’re lending funds to the institution. In exchange, the bank pays you interest. You typically have full access to your money stored in a savings account, whenever you need it.
Your savings account may have rules about how many withdrawals you can make each month, but it’s typically easy to transfer funds and make deposits as needed.
Savings accounts don’t tend to come with debit cards or cheques like you’d get with chequing accounts. If you have chequing and savings accounts at the same institution, you may be able to link them both to your debit card. Note that you may be charged a fee for using your debit card to withdraw money from your savings account.
How does interest work on a savings account?
Interest rates on savings accounts vary by the financial institution. Some banks or credit unions pay interest on the total amount in your account, while others only pay interest on amounts above a minimum required balance.
Typically, savings account interest is compounded, which means you can earn interest on your interest, not just on the amount you originally deposited. Read the terms and conditions of the account carefully to see whether the interest is compounded annually, monthly or daily. The more frequently your account compounds interest, the more your money will grow.
Do savings account interest rates change?
Yes, interest rates on savings accounts are usually variable. That means the interest offered on your savings account is influenced by your bank’s prime rate. It rises and falls based on changes in the Bank of Canada’s policy rate and prevailing market conditions, which reflect the cost of borrowing for banks.
For example, if the Bank of Canada increases the policy rate on one of the eight scheduled review days in a year, banks may raise their prime rate. This, in turn, will translate into higher rates of returns on its savings and investment products. Conversely, a policy rate decrease may lead to lower interest rates on these products.
Savings account interest rates in Canada, though variable, tend to be stable for months. Banks may adjust interest rates depending on market trends or competition. This page is updated monthly to keep you informed about the best savings account options.
How to choose a savings account
Savings accounts are offered by many different banking institutions across Canada, which include Big Six banks, traditional banks and credit unions as well as online banks.
Each financial institution provides unique banking and account features. Make sure you take the time to shop around to find the best option to suit your needs. Here are some things to consider:
Interest rate
How much interest will you earn on the money in your savings account? Many banks offer promotional interest rates that may seem enticing at first, but drop down to a much lower rate after a few months. Depending on your savings goals, this type of introductory interest rate might work for you.
However, it’s often better to look at the best regular interest rate instead of solely focusing on the promotional rates. This way you can best anticipate the annual percentage yield (APY), which shows how much interest you will earn over a year.
Minimum balance
Some savings accounts in Canada require that you keep a minimum balance, such as $1,000, in your account at all times if you want to earn interest. If you can be sure you will always have that minimum amount in place, that’s fine.
Though, it might be a better idea to look for an account with no minimum requirements for peace of mind that you can always earn interest no matter your balance.
Fees
Most financial institutions in Canada do not charge monthly fees for savings accounts, but there might be fees for certain types of transactions or a limited number of free transactions you get per month. Pay attention to the fine print and check how many monthly withdrawals you’re allowed, whether you can make free e-transfers, and if there are other service fees to note.
CDIC Insurance
Many Canadian financial institutions are covered by a provincial or federal deposit insurer, such as the Canada Deposit Insurance Corporation (CDIC). The insurance protects your money — up to $100,000 per type of account — in case the bank fails. To be sure, check the financial institution’s website to see if it has deposit insurance protection before you apply for a savings account.
Convenience
You’ll want to make sure it is easy to withdraw your money when you need it. Consider your banking preferences and choose a savings account that’s convenient for you. For example, you may choose the RBC savings account if you prefer a big bank that has a large branch network to facilitate your in-person banking needs.
In many cases, people prefer to have their savings and chequing accounts at the same financial institution. If you already have a chequing account at a particular bank or credit union, it might be easier to open a savings account there, too. Plus, it will be convenient to move money between the accounts.
When considering an online-only savings account, make sure you understand how your money can be accessed. Can you use a debit card at an ATM or will you need to transfer the funds to a chequing account with another bank? Also, evaluate whether the digital experience is suitable for your needs. Is there a mobile app? Is the online banking interface easy to use? Can you call a customer service representative for questions?
How to open a savings account
Opening a savings account is generally a straightforward process and can be done in person or online depending on your financial institution. The application should only take a few minutes, but you will need to meet a few requirements and share some personal information. You can find a list of these requirements on the bank’s website or contact them to ask about this option.
Most Canadian banks require you to be a Canadian resident with a permanent address in Canada. However, some financial institutions will allow you to open a bank account as a non-resident.
You’ll also need to be the age of majority in your home province or territory. You will have to show an official government ID and provide personal information, including your:
Address and phone number.
Date of birth.
Email address, if you plan to use online banking.
Children and younger teens can open youth savings accounts, such as the CIBC Youth Account with a parent or legal guardian.
Alternatives to basic savings accounts
A savings account is a great option for most people, but it may not be the best type of bank account for all your needs. If you want to save money for less immediate financial goals, consider an option that earns more interest.
Alternatives to basic savings accounts include:
Market-linked investments options, such as bonds, exchange-traded funds (ETFs), market-linked GICs and mutual funds.
Fortunately, you don’t have to pick just one type of account. You can choose any of these accounts to help you reach your financial goals. It’s all about finding the right combination of bank accounts for your needs.
» Ready for a new bank? Here’s how to switch to a new bank or credit union
Frequently asked questions
Are savings accounts in Canada safe?
Are savings accounts in Canada safe?
Yes, your savings account is as secure as any other type of bank account. Many Canadian banks and credit unions are covered by federal or provincial deposit insurers, such as the Canada Deposit Insurance Corporation (CDIC). This insurance protects your money — up to $100,000 per type of account — in case the bank fails. However, it’s also up to you to be cautious and protect your banking and personal information to avoid identity theft.
Which banks have the best savings account interest rates?
Which banks have the best savings account interest rates?
The Canadian banks that have the best savings account interest rates as of Dec. 11, 2024, are:
Simplii Financial, the Simplii Financial High Interest Savings Account rate: 6.00%*
Tangerine Bank, the Tangerine Tax-Free Savings Account rate: 5.40%*
Tangerine Bank, the Tangerine RSP Savings Account: 5.40%*
*Special rates
Are savings accounts taxable in Canada?
Are savings accounts taxable in Canada?
Yes, you must pay income tax on interest earned in your savings account. Every year, your financial institution will send you a T5 slip summarizing your total interest income. You should include this interest income along with other personal income on your tax return. However, you won’t pay taxes on the interest you earn in a tax-free savings account (TFSA), which is a registered savings account that can hold both investments and cash deposits.
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Siddhi Bagwe
Siddhi Bagwe