Best Accounts to Save Money in Canada for January 2025
Jan 2, 2025Choose 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.
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 4.75%, a 2.00% bonus on top of your regular interest rate of 2.75% for 120 days. Offer ends. February 14, 2025.
Best Bank Accounts from Our Partners
 Tangerine Savings Account |  RBC High Interest eSavings Account | |
Interest rate 3.90%* Promotional rate | Interest rate 4.50%* Promotional rate | Interest rate 5.10%* Promotional rate |
Monthly fee $0 | Monthly fee $0 | Monthly fee $0 |
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 4.75%, a 2.00% bonus on top of your regular interest rate of 2.75% for 120 days. Offer ends. February 14, 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.
Best accounts to save money
The accounts with the best interest rates for high interest savings accounts (HISAs), tax-free savings accounts (TFSAs) and registered retirement savings plans (RRSPs) as of Jan. 2, 2025, are:
Scotiabank MomentumPLUS Savings Account
CIBC eAdvantage Savings Account
KOHO Spending and Savings Account
Manulife Bank Registered Advantage Account
Motive Savvy Savings Account
Simplii Financial High Interest Savings Account
Tangerine Savings Account
PC Money Account
Manulife Bank Tax-Free Advantage Account
Tangerine Tax-Free Savings Account
WealthONE Tax-Free Savings Account
Saven Financial TFSA
Canadian Tire Tax Free® High Interest Savings Account
Motive Financial TFSA Savings Account
Achieva Financial TFSA Savings Account
Steinbach Credit Union TFSA Variable Savings
Manulife Bank Registered Advantage Account
Tangerine RSP Savings Account
WealthONE RRSP Savings Account
National Bank Cash Advantage Solution RRSP
Saven Financial RRSP
Achieva Financial RRSP Savings Account
Steinbach Credit Union RRSP Variable Savings
Compare savings account interest rates
Explore this week’s top savings account interest rates by national banks, regional credit unions and online financial institutions.
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, helping your money grow over time. These accounts can make it easier to achieve specific savings goals, such as buying a new car, paying for a wedding, or building an emergency fund.
Types of savings accounts
Canadians can choose from a number of different types of savings accounts. Most are fairly standard, while others have additional features designed to meet specific needs. Types of savings account options include:
Basic savings accounts: Earn a modest interest rate and enjoy fewer restrictions.
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.
How savings accounts work
When you deposit your money in a savings account at a bank or credit union, you’re lending your funds to the institution. In return, they pay you interest.
While you typically can access your money whenever you need it, some savings accounts place limits on the number of monthly withdrawals. In most cases, however, you can transfer funds and make deposits without restrictions.
Savings accounts don’t tend to come with debit cards or cheques like you’d get with chequing accounts. However, 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 some banks may charge a fee if you use 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 account balance, while others pay interest on the amount above a minimum required balance.
Typically, savings account interest is compounded, meaning you can earn interest on both your original deposit and any previously earned interest.
Be sure to read the account’s terms and conditions carefully to determine whether the interest is compounded annually, monthly or daily. The more frequently your interest compounds, the faster your money can 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.
What savings accounts should you have?
Choosing the type of savings account depends on your savings goals, personal preferences and life situations. If you have different objectives over various timelines, it might make sense to have multiple accounts to better organize and plan your finances.
For example, you could choose a government-registered, tax-advantaged RRSP to save for retirement. At the same time, you might tuck away a small amount of money into a non-registered HISA for penalty-free withdrawals when emergencies arise.
Here are some features and benefits of both non-registered and registered savings accounts to consider.
Comparing HISAs, TFSAs and RRSPs
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 2024 and 2025 tax years are $31,560 and $32,490 respectively. The limit 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 to choose a savings account
Savings accounts are offered by many different banking institutions across Canada, including the Big Six banks, traditional banks and credit unions as well as online banks.
Each financial institution provides unique banking and account features, so be sure to shop around to find the best option to suit your needs. Here are some factors 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 rate might work for you.
However, it’s often better to look at the best regular interest rate instead of focusing solely on the promotional offers. This way, you can accurately anticipate how much interest you will earn over a year.
Minimum balance
Some savings accounts require you keep a minimum balance, such as $1,000, if you want to earn interest. If you can easily meet this daily or monthly requirement, it may work well for you.
Though, you might want to consider an account without such requirements, ensuring that you earn interest no matter your balance.
Fees
Most financial institutions do not charge monthly fees for savings accounts, but may have fees for certain transactions or limit your free monthly transactions. Pay attention to the fine print to know how many monthly withdrawals you’re allowed, whether there are additional service fees, and if you can make free e-transfers as needed.
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 — if the bank fails. Before opening an account, check the financial institution’s website to confirm if it has deposit insurance protection.
Convenience
Consider your banking preferences and ensure you can conveniently withdraw your money from your savings account whenever you need it.. For example, you might choose the RBC savings account if you prefer a big bank that has a large branch network to facilitate your in-person banking.
Many people like to keep their savings and chequing accounts at the same financial institution. If you already have a chequing account at a particular bank or credit union, opening a savings account there can make it easier to transfer money between accounts.
When considering an online-only savings account, make sure you know how to access your money. 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 mobile app or online banking meet your needs. Is the digital 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, provided you meet the criteria 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 national banks require you to be a Canadian resident with a permanent address in the country. 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 an ideal option for many people, but it may not meet all your needs. If you want to save for less immediate goals or simply want more out of your bank account, consider these alternatives to a basic savings account:
Market-linked investment options, such as bonds, exchange-traded funds (ETFs), market-linked GICs and mutual funds.
Fortunately, you don’t have to pick just one. You can choose a combination of these accounts to fit 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 other types of bank accounts. 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 Jan. 02, 2025, are:
Scotiabank, the Scotiabank MomentumPLUS Savings Account rate: 5.25%*
Manulife Bank, the Manulife Bank Tax-Free Advantage Account rate: 4.80%*
Manulife Bank, the Manulife Bank Registered Advantage Account rate: 4.80%*
*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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