Best high-interest savings accounts in Canada (2026): how to compare rates and spot the catch
Rates change often, so instead of a list that goes stale in a week, this guide gives you the five checks that decide which account actually pays you more, a calculator that compares any two offers over 12 months, and the official rules on insurance and tax. Plug in the rates you see today and the answer is yours.
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Promo vs everyday rate calculator
Which savings offer earns more in 12 months?
Assumes interest compounds monthly at the annual rate divided by 12, no deposits or withdrawals, and the whole balance earns the rate shown. FCAC notes some accounts compound daily and some pay tiered rates, so your account's result can differ. All rates here are illustrative, not offers from any institution.
The 5 checks that decide the best account
A savings account pays interest on the money you deposit. A high-interest savings account (HISA) is, in CDIC's words, a savings account that can offer a higher rate than a regular savings account without locking your money in for a term. Here is what to check before you move a dollar.
| Check | What to ask | Why it matters |
|---|---|---|
| 1. Rate after the promo | What is the regular rate, and when does the intro rate end? | FCAC warns the rate may be lower once the introductory period ends |
| 2. Which dollars earn it | Is the rate paid on all of my balance, only above a threshold, or only on the part above it? | Tiered rates can pay far less than the headline |
| 3. Deposit insurance | Is the money held at a CDIC member, or a provincially insured credit union, in my name? | Not every product called a HISA is covered |
| 4. Fees and limits | How many free withdrawals and transfers, and is there a minimum balance? | FCAC notes most savings accounts limit transactions and some charge for them |
| 5. Access | Can I withdraw directly, or must I transfer to chequing first? | Transfers can add a delay when you need the cash |
To see current rates side by side, FCAC runs a free Account Comparison Tool that lists interest rates, monthly fees and transaction fees for chequing and savings accounts. FCAC itself says to confirm the details with the institution before you decide. New to the basics? Start with what a HISA is and how it works.
Promotional rates: what happens after
FCAC's guidance is plain: institutions may offer high introductory rates for a set period, and after that the rate may be lower. Before you sign up, make sure you will still earn a good rate after the introductory period ends, and that you understand the terms of the offer. Promotions often apply only to new deposits or new clients, and only up to a cap, so read the fine print for those three words: new, cap, and ends.
Two habits keep a promo working for you:
- Put the end date in your calendar the day you deposit. The moment the promo ends is the moment your money starts earning the regular rate.
- Compare the full 12 months, not the first five. The calculator above does this. A promo that looks 1.5 points higher can lose to a steady account once the rate drops.
Savings rates tend to move with the economy. The Bank of Canada explains that its policy rate influences the interest rates paid on deposits, GICs and other savings. On September 2, 2026 it held that rate at 2.25%, and its next scheduled decision is October 28, 2026. When the policy rate moves, expect savings rates to follow over time.
Tiered interest and compounding
FCAC describes three ways an account can pay its higher rate: on all the money in your account; on all of it only once your balance goes above a certain amount; or only on the part of your balance above that amount. Its own illustration:
| Example account | How it pays | On a $3,000 balance |
|---|---|---|
| Bank 1 | 1% on the first $1,000, 2% above $1,000 | $1,000 × 1% + $2,000 × 2% = $50 a year (simple) |
| Bank 2 | 2% on the entire balance if you keep at least $1,000 | $3,000 × 2% = $60 a year (simple) |
| Bank 3 | No interest in a month you withdraw | Depends on how often you touch it |
On compounding, FCAC notes that advertised rates are usually annual, interest goes into your account each month, and accounts may compound monthly or daily. Daily compounding earns slightly more. Ask your institution how it compounds. Our guide to how compound interest works shows why this matters over years.
Worked example on $10,000
Priya has $10,000 for an emergency fund and is choosing between two illustrative offers. Interest compounds monthly and she does not touch the money for a year.
| Offer | Arithmetic | Interest in 12 months |
|---|---|---|
| Account A: 2.50% all year | $10,000 × (1 + 0.025/12)12 − $10,000 | $252.88 |
| Account B: 4.00% for 5 months | $10,000 × (1 + 0.04/12)5 − $10,000 | $167.78 |
| Account B: then 1.00% for 7 months | $10,167.78 × (1 + 0.01/12)7 − $10,167.78 | $59.46 |
| Account B total | $167.78 + $59.46 | $227.24 |
| A 0.05% account | $10,000 × (1 + 0.0005/12)12 − $10,000 | $5.00 |
The promo wins for five months and loses for the year, by $25.64. If Priya takes the promo and moves the money again when it ends, the result changes, which is exactly why the end date belongs in her calendar. Leaving the same $10,000 in a 0.05% account costs her about $248 a year in interest she could have earned.
Is your savings account insured?
- CDIC members. CDIC covers eligible deposits up to $100,000 per category, per member institution, including principal and interest. Categories include deposits in one name, joint deposits, and deposits in a TFSA, RRSP, RRIF, RESP, RDSP or FHSA, plus deposits held in trust. Savings and chequing accounts, GICs and foreign currency deposits are eligible.
- Not every "HISA" is a deposit. CDIC says HISA ETFs (money market ETFs) and HISA mutual funds are not protected. A HISA opened through a broker may be covered if the funds are held at a member institution.
- Fintech cash accounts. CDIC says fintechs are not members. Your money is protected only if the fintech places it as eligible deposits at a member, in an account in your name or a trust account naming you as beneficiary. Ask: Is my money held by a CDIC member? How is it placed? How much is protected?
- Credit unions. FCAC says provincially regulated credit unions and caisses populaires are covered by provincial deposit insurance plans, which vary by province. Federal credit unions are CDIC members.
CDIC members must display the CDIC logo, and CDIC publishes a member list. For the full rules, see our CDIC guide.
Tax on savings interest
CRA says interest is part of your total income and must be reported on your return. You may not receive a T5 slip if your total investment income is under $50, but you still have to report it. For joint accounts, you generally report your share based on how much you contributed. Interest earned inside a TFSA is not taxed, and the 2026 TFSA dollar limit is $7,000. Our guides to whether HISA interest is taxable and TFSA vs HISA walk through it.
Options people compare
| Option | Typical trade-off | Check |
|---|---|---|
| Online-only savings account | Often a higher everyday rate | May require an existing account elsewhere to open; transfer times |
| Savings at your current bank | Easy transfers to chequing | Everyday rate after any promo |
| Credit union savings | Local, membership based | Provincial deposit insurance rules |
| Fintech cash account | App based, partner institutions hold deposits | How CDIC applies to your money |
| Savings inside a TFSA | Interest not taxed | Your contribution room |
| Short GIC | Rate locked for a term | Access before maturity |
These are options to understand, not recommendations; Looni does not pick accounts for you. More calculators are on the tools page.
How to compare high-interest savings accounts
- Write down the everyday rate, the promo rate, the promo length and the rate after the promo for each account.
- Ask whether the rate is paid on your whole balance or only on part of it.
- Enter both offers in the calculator to compare 12 months of interest on your real balance.
- Confirm the money is held at a CDIC member or a provincially insured credit union, in your name.
- Check transaction limits, fees, minimum balances and how long transfers take.
- If you take a promo, put its end date in your calendar the day you deposit.
Questions people ask
What is the best high-interest savings account in Canada?
There is no single best account for everyone, and rates change often. The best one for you pays a good rate on your whole balance after any promo ends, is covered by CDIC or provincial deposit insurance, and has no fees or limits you will run into. FCAC's free Account Comparison Tool lists current rates and fees side by side.
Are promotional savings rates worth it?
They can be, if you understand the terms. FCAC says introductory rates run for a set period and the rate may be lower afterward, so check the regular rate and the end date. In our example, 4.00% for 5 months then 1.00% earns $227.24 on $10,000 in a year, less than a steady 2.50% at $252.88.
Is my high-interest savings account CDIC insured?
Eligible deposits at a CDIC member are covered up to $100,000 per category, per member institution, including interest. HISA ETFs and HISA mutual funds are not covered. Money in a fintech app is covered only if it is placed as eligible deposits at a member in your name or in a trust naming you.
What is tiered interest on a savings account?
Some accounts pay different rates on different parts of your balance. FCAC says the higher rate may apply to all your money, to all of it only above a set balance, or only to the part above that amount. Ask which one applies before comparing headline rates.
Do I pay tax on savings account interest in Canada?
Yes, outside a TFSA or other registered plan. CRA says interest must be reported on your return, and you may not get a T5 slip if your total investment income is under $50, but you still must report it. Interest earned in a TFSA is not taxed.
Why did my savings account rate go down?
Two common reasons: an introductory rate ended, or rates fell across the market. The Bank of Canada says its policy rate influences rates paid on deposits and savings; it held that rate at 2.25% on September 2, 2026.
Are credit union savings accounts insured?
Yes, but usually not by CDIC. FCAC says provincially regulated credit unions and caisses populaires are covered by provincial deposit insurance plans, which vary by province. Federal credit unions are CDIC members.
Looni reads your statements and shows the interest each account actually paid you, next to the fees it charged, so a promo that quietly ended stands out. Read-only, no advice.
Sources
Financial Consumer Agency of Canada, Savings accounts (introductory rates, tiered interest examples, compounding, fees, transaction limits, minimum balances, access) and Deposit insurance (provincial plans for provincially regulated credit unions); FCAC Account Comparison Tool; CDIC, What's covered, High Interest Savings Account and Fintechs; Canada Revenue Agency, Line 12100 Interest and other investment income and TFSA contribution room; Bank of Canada, September 2, 2026 rate announcement and Understanding the policy interest rate. Rates in the examples are illustrative; the arithmetic is ours.