Name: Best Savings Accounts from Big 6 Banks
Creator: NerdWallet

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ALSO CONSIDER: Best high-interest savings accounts | Best online savings accounts | Best high-interest TFSAs

Savings accounts help your money grow. The best savings accounts have high annual percentage yields, or APYs. The higher the APY, the more money you’ll earn over time.

The best HISAs in Canada
The best TFSA HISAs in Canada
The best RRSP HISAs in Canada
Summary of our selections
Top options from Canada’s Big Six
Honourable mentions
Things to know about savings accounts

The best HISAs in Canada

Simplii Financial™ High Interest Savings Account

Interest Rate

5.25%

Open a High Interest Savings Account and earn a special 5.25% interest rate until April 30, 2023. Base interest rate: 0.40%. No minimum balance required.

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

Apply Now

Simplii’s no-fee HISA gives account holders access to CIBC ATMs in Canada.
Simplii Financial is an online bank owned by CIBC that offers savings and chequing accounts, credit cards, mortgages, loans, lines of credit, registered plans, GICs, and mutual fund accounts. Read our review of Simplii Financial for more information.

0.40% standard interest rate.
No monthly fee.
Manage your money through online banking and a mobile app.
Easily set up automatic deposits.
HISA account holders can open a no-fee chequing account to access money from any CIBC ATM in Canada without a fee.
No transaction or service fees.
No minimum balance.
Immediate access to your money through withdrawals, Interac e-Transfer, transfers to linked accounts, and more.
Eligible for CDIC deposit insurance.

Scotiabank MomentumPLUS Savings Account

Interest Rate

Up to 5.00%*

With the MomentumPLUS Savings Account, you can earn a savings rate of up to 5.00%* for 5 months: Regular Interest Rate + Premium Period Interest Rate + Ultimate Interest Rate Boost + Welcome Bonus Interest Rate. Ends June 30, 2023.

Promotional Rate
Bonus Offer

N/A
Monthly Fee

$0

Apply Now

The MomentumPLUS Savings Account offers a higher interest rate on long-term savings for multiple goals in one account.
Founded in Halifax in 1832, Scotiabank is one of Canada’s oldest and largest banks, a more or less permanent member of the country’s Big Six financial institutions. Read our review of Scotiabank for more information.

Earn a savings rate of up to 5.00%* interest for a limited time.
The longer you save, the higher your interest rate. Plus, save for multiple goals in one account.
Free unlimited transfers between Scotiabank accounts via self-service.
No monthly account fees or minimum balance required.
Choose the timeline and track as you earn.
Eligible for CDIC Insurance.
Terms and Conditions Apply. Click ‘Apply Now’ for complete details.

CIBC eAdvantage® Savings Account

Interest Rate

4.25%

Clients opening their first CIBC eAdvantage® Savings Account will earn bonus interest for 120 days (up to a balance limit of $1,000,000), in addition to the 1.40% regular interest rate and 0.50% Smart Interest when you save at least $200 per month (up to a balance limit of $200,000).

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

CIBC’s eAdvantage® Savings Account earn a healthy 1.40% regular interest rate, which can be boosted to 4.25% through bonus interest and Smart Interest, which rewards you for saving at least $200 per month.
CIBC is a full-service multinational financial institution and one of the Big Six banks in Canada. Read our review for more details.

Earn up to 4.25%.
2.35% bonus interest rate for the first four months when you open your first account (up to a balance limit of $1,000,000).
0.50% Smart Interest when you save at least $200 a month (up to a balance limit of $200,000).
Set up automatic transfers with AutoSave so you can grow your savings without even thinking about it.
Free online transfers between your accounts.
No monthly fee.
$5 fee for transactions, including debit purchases, CIBC withdrawals (including CIBC ATM), Interac e-Transfer transactions, cheques, pre-authorized payments, and bill payment.
Bank when, where and how you want with CIBC Online Banking® and the award-winning CIBC Mobile Banking® App.
Access to nearly 4,000 ATMs across Canada.
Use your mobile device to deposit personal or business cheques.
CIBC Smart Balance Alert™ gives you a heads-up when your account is short on funds. That gives you time to make a transfer and avoid a non-sufficient funds (NSF) fee and a declined payment.
Eligible for CDIC deposit insurance.
To be eligible, you must be a Canadian resident who is the age of majority in your province or territory. If you’re under the age of majority, apply by visiting a CIBC Banking Centre.

Tangerine Savings Account

Interest Rate

5.00%

To earn 5.00% interest for 5 months, you must become a new client online by March 30, 2023, using the promo code EARNMORE and open your first eligible Chequing Account and Savings Account (including TFSAs, RSPs, RIFs and US$ Savings Accounts) within 30 days. Regular interest rate: 1.00%, no minimum balance.

Promotional rate
Bonus Offer

Up to $400

To earn the $400 Bonus, Open your first Savings Account and Chequing Account within 30 days of becoming a Client. Activate your Client Card and start earning your Bonus. Use your Client Card for online purchases and online bill payments to earn 20% cash back on Eligible Transactions for 60 days.
Monthly Fee

$0

Tangerine’s promotional 5.00% interest rate will earn you a high rate of return for five months. Pair it with the virtual bank’s no-fee chequing account, credit card, registered accounts or a GIC to maximize your financial goals.
Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.

To earn 5.00% interest for 5 months, you must become a new client online by March 30, 2023, using the promo code EARNMORE and open your first eligible Chequing Account and Savings Account (including TFSAs, RSPs, RIFs and US$ Savings Accounts) within 30 days.
To earn the $400 Bonus, Open your first Savings Account and Chequing Account within 30 days of becoming a Client. Activate your Client Card and start earning your Bonus. Use your Client Card for online purchases and online bill payments to earn 20% cash back on Eligible Transactions for 60 days. Full promotional offer details are listed online.
5.00% promo interest rate and 1.00% regular interest rate.
No monthly fee.
Automated savings program available.
Unlimited free self-serve transactions per month.
Service fees are limited to a $45 charge for non-sufficient funds.
No minimum balance.
Immediate access to your money through withdrawals, transfers to linked accounts, and more.
Eligible for CDIC deposit insurance.

Meridian High Interest Savings Account

Interest Rate

2.50%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

Earn a great interest rate on flexible long-term savings available across registered and non-registered accounts.
Meridian, Ontario’s largest credit union is backed by more than 75 years of banking experience and offers many of the same financial solutions as the big banks.

Interest is calculated on every dollar, calculated daily, and paid monthly.
Unlimited free transactions.
Meridian cardholders have access to over 43,000 surcharge-free ATMs in North America with THE EXCHANGE® Network in Canada and the Allpoint Network in the US.
Our High-Interest Savings Account is also available in a Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) account. The account is not available for Provincial or Federal Locked-in RRSP or RRIF plans.
Access to branch, online, mobile and telephone banking.

The best TFSA HISAs in Canada

Tangerine Tax-Free Savings Account

Interest Rate

5.00%

To earn the promotional interest rate: Become a new client online by March 30, 2023, using the promo code EARNMORE. Open your first eligible Savings Account and Chequing Account within 30 days, and you’ll earn 5.00% interest in your Savings Account for five months. Then, open a TFSA as a second Savings Account (RSPs, RIFs and US$ Savings Accounts are also eligible) and you’ll get 5.00% interest on those Savings, too – up to $1,000,000 for each Account Type. For these subsequent Accounts, this rate will apply for five months from the day you started earning 5.00% interest in your first eligible Savings Account. Regular rate: 1.00%, no minimum balance required.

Promotional rate
Bonus Offer

Up to $400

To earn the $400 Bonus, Open your first Savings Account and Chequing Account within 30 days of becoming a Client. Activate your Client Card and start earning your Bonus. Use your Client Card for online purchases and online bill payments to earn 20% cash back on Eligible Transactions for 60 days.
Monthly Fee

$0

This flexible, no-fee TFSA comes with a generous promotional offer that will earn you cash and a high rate of return for five months.
Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.

To earn 5.00% and get a $400 cash Bonus:
Become a new client online by March 30, 2023, using the promo code EARNMORE. Open your first eligible Savings Account and Chequing Account within 30 days, and you’ll earn 5.00% interest in your Savings Account for five months. Then, open a TFSA as a second Savings Account (RSPs, RIFs and US$ Savings Accounts are also eligible) and you’ll get 5.00% interest on those Savings, too – up to $1,000,000 for each Account Type. For these subsequent Accounts, this rate will apply for five months from the day you started earning 4% interest in your first eligible Savings Account.
To earn the $400 Bonus, Open your first Savings Account and Chequing Account within 30 days of becoming a Client. Activate your Client Card and start earning your Bonus. Use your Client Card for online purchases and online bill payments to earn 20% cash back on Eligible Transactions for 60 days. Full promotional offer details are listed online.
5.00% promo interest rate and 1.00% regular interest rate.
No monthly fee.
Automated savings program available.
Manage your money by phone, through online banking and a mobile app.
Other Tangerine TFSA investment options include Tax-Free GICs, available in 90-day to 5-year terms, and investment accounts and portfolios.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
No minimum balance is required.
Eligible for CDIC deposit insurance.

CIBC TFSA Tax Advantage Savings Account

Interest Rate

3.00%*

Regular interest rate: 0.75%. *Regular tax-free interest is calculated on your full daily closing balance and is paid monthly. For eligible accounts opened during the offer period, the bonus rate is earned on the full daily closing balance. Bonus interest rate offer expires March 31, 2023.

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

Earn tax-free daily interest on the CIBC TFSA Tax Advantage Savings Account.
Canadian Imperial Bank of Commerce, also known as CIBC, is a full-service multinational financial institution and one of the Big Six banks in Canada. Read our review of CIBC for more information.

Earn tax-free daily interest on the account that you don’t have to close at a set age. Plus, your unused TFSA contribution room can carry it forward as long as you live.
Option to set up hassle-free recurring deposits to grow your savings faster.
Grow your money tax-free with the interest calculated on your full daily closing balance and paid monthly.
Access to your money at any time, tax-free with the option to re-contribute the amount you’ve withdrawn next year or later.
For eligible accounts opened during the offer period, the bonus rate is earned on the full daily closing balance.
Eligible deposits are insured by the Canada Deposit Insurance Corporation, subject to limitations as outlined by the CDIC.

AcceleRate Variable Tax-Free Savings Account

Interest Rate

3.55%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This online-only high-interest TFSA features a competitive rate, access to registered GICs, and minimal service fees.
AcceleRate Financial is an online division of Manitoba’s Access Credit Union and offers savings accounts, GICs, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).

3.55% variable interest rate. Interest is calculated on the daily closing balance and paid annually on December 31.
No monthly fee.
To open this account, you must agree to become a member of Access Credit Union, which includes a complimentary $5 share. That share is forfeited upon cancellation of membership.
Start saving to reach the $1,000 minimum needed to invest in an AcceleRate TFSA GIC, which may earn even higher rates.
Manage your money by phone, through online banking and a mobile app.
Other TFSA investment options include the AcceleRate TFSA GIC, available in one to seven-year terms.
Service fees are listed online.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
$10 fee to close the account within three months of opening.
No minimum balance is required.
Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.

WealthONE Tax-Free Savings Account

Interest Rate

3.40%

$1,000 opening deposit required
Bonus Offer

N/A
Monthly Fee

$0

Use this no-fee TFSA to earn tax-free interest in an easy, flexible way.
WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.

3.40% variable interest rate. Interest is calculated on the daily closing balance and paid monthly.
No monthly fee.
Automated savings program available. Manage your money by phone, through online banking and a mobile app.
Other Wealth One TFSA investment options include guaranteed investment certificates, available in 6-month to 5-year terms, and investment accounts and portfolios through Smart Money Invest.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
$100 fee to close your TFSA account.
No minimum balance is required.
Eligible for CDIC deposit insurance.

Hubert Financial High Interest Tax-free Savings Account

Interest Rate

3.55%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This high-interest and no-fee TFSA gives you access to term deposits and VirtualWealth online investment accounts.
Hubert Financial is the online division of Sunova Credit Union and offers a high-interest savings account, term deposits, registered plans, a credit card and VirtualWealth investing.

3.55% variable interest rate. Interest is calculated daily, paid monthly.
No monthly fee.
To open this account, you must become a member of Sunova Credit Union, which requires a $5 share. Your share is considered an investment and is fully refundable should you cancel your membership.
Use this TFSA to save $1,000 and open a higher rate tax-free one-year term deposit that is redeemable quarterly.
Manage your money by phone, through online banking and a mobile app.
Other Hubert TFSA investment options include TFSA term deposits, available in one-year quarterly redeemable terms to five-year non-redeemable terms, and VirtualWealth online investment accounts.
No transaction or service fees, except for wire transfers and a $25 fee for accounts that are inactive for six months with a balance under $1,000.
No minimum balance is required.
Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
Hubert Financial is not available to Québec residents.Hubert’s Happy Savings TFSA HISA

The best RRSP HISAs in Canada

Tangerine RSP Savings Account

Interest Rate

5.00%

To earn 5.00% interest for 5 months, you must become a new client online by March 30, 2023, using the promo code EARNMORE and open your first eligible Chequing Account and Savings Account (including TFSAs, RSPs, RIFs and US$ Savings Accounts) within 30 days. Regular interest rate: 1.00%, no minimum balance.

Promotional rate
Bonus Offer

Up to $400

To earn the $400 Bonus, Open your first Savings Account and Chequing Account within 30 days of becoming a Client. Activate your Client Card and start earning your Bonus. Use your Client Card for online purchases and online bill payments to earn 20% cash back on Eligible Transactions for 60 days.
Monthly Fee

$0

This flexible, no-fee RRSP comes with a generous promotional offer that will earn you cash and a high rate of return for five months.
Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.

No monthly fee.
Automated savings program available.
Manage your money by phone, through online banking and a mobile app.
Other Tangerine RSP investment options include RSP GICs, available in 90-day to 5-year terms, and investment accounts and portfolios.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your RRSP to another bank (transferring another in is free).
No minimum balance is required.
Eligible for CDIC deposit insurance.

CIBC RRSP Daily Interest Savings Account

Interest Rate

2.60%*

Regular interest rate: 0.35%. *This is a combined bonus and regular annual interest rate paid on new deposits made to a CIBC RRSP Daily Interest Savings Account. For eligible accounts opened during the offer period, the bonus and regular rate are earned on the full daily closing balance and paid monthly. Bonus interest rate offer expires March 31, 2022.

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

CIBC’s Daily Interest Savings Account (DISA) is a short-term alternative for RRSP funds with easy access to your money.
Canadian Imperial Bank of Commerce, also known as CIBC, is a full-service multinational financial institution and one of the Big Six banks in Canada. Read our review of CIBC for more information.

CIBC RRSP Daily Interest Savings Account (DISA) can be an RRSP starter account or a short-term alternative for your RRSP funds.
Earn guaranteed principal and interest with complete access to your money to make withdrawals at any time.
Invest at your own pace with a low minimum investment of only $25, you can start your RRSP savings while you decide what to do in the long term.
Tiered interest is calculated daily and paid to you monthly. You can also set up a Regular Investment Plan to maximize your compound interest.
Pay no fees on your account, unless you transfer all or part of your RRSP funds to another financial institution, a $100 fee applies.
For eligible accounts opened during the offer period, the bonus and regular rate are earned on the full daily closing balance and paid monthly.
Eligible deposits are insured by the Canada Deposit Insurance Corporation, subject to limitations as outlined by the CDIC.

motusbank RRSP savings account

Interest Rate

2.50%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This online-only no-fee RRSP features a competitive standard interest rate and access to mutual funds and online brokerage services.
motusbank is an online division of Meridian Credit Union and offers chequing and savings accounts, mortgages, registered plans, GICs, investing, and a home equity line of credit loan.

No monthly fee.
Get access to a motusbank Financial Planner.
Automated savings program available.
Manage your money by phone, through online banking and a mobile app.
Other motusbank RRSP investment options include RRSP GICs, available in 1-5 year terms, mutual funds, and investment accounts and portfolios from Qtrade Direct Investing and VirtualWealth.
TFSAs and RRIFs are also available.
Service fees are listed online.
$50 fee to transfer your RRSP to another bank (transferring in another RRSP is free).
No minimum balance is required.
Eligible for CDIC deposit insurance.

Hubert’s Happy Savings RRSP

Interest Rate

3.55%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This high-interest, online-only RRSP account provides you with access to investment portfolios and term deposits, including one-year terms redeemable quarterly.
Hubert Financial is the online division of Sunova Credit Union and offers a high-interest savings account, term deposits, registered plans, a credit card and VirtualWealth investing.

3.55% variable interest rate. Interest is calculated daily, paid monthly.
No monthly fee.
To open this account, you must become a member of Sunova Credit Union, which requires a $5 share. Your share is considered an investment and is fully refundable should you cancel your membership.
Use this RRSP to save $1,000 and open a higher rate tax-free one-year term deposit that is redeemable quarterly.
Manage your money by phone, through online banking and a mobile app.
Other Hubert RRSP investment options include spousal RRSPs, RRSP term deposits, available in one-year quarterly redeemable terms to five-year non-redeemable terms, and VirtualWealth online investment accounts.
TFSAs and RRIFs are also available.
No transaction or service fees, except for wire transfers and a $25 fee for accounts that are inactive for six months with a balance under $1,000.
No minimum balance is required.
Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
Hubert Financial is not available to Québec residents.

Motive RRSP Savings Account

Interest Rate

2.60%

Earn 0.25% interest for $0-$2,500 balances, and 2.60% for balances $2,500.01 and over.

With $2,500.01 minimum balance
Bonus Offer

N/A
Monthly Fee

$0

Earn interest at a competitive rate on this no-fee and no-minimum balance high-interest RRSP.
Motive Financial is an online division of Canadian Western Bank and offers chequing and savings accounts, registered plans and GICs.

Interest is calculated on the daily closing balance at the applicable rate tier and paid on the last day of the month, for the period beginning on the last day of the previous month and ending on the second last day of the month.
No monthly fee.
No minimum contribution.
Manage your money by phone, through online banking and a mobile app.
Other RRSP investment options include the Motive® RRSP GIC, available in one to 10-year terms.
Service fees are listed online.
Free withdrawals and deposits.
$50 fee to transfer your RRSP to another bank (transferring in another is free).
$50 fee to close the account within one year of opening.
No minimum balance is required.
Eligible for CDIC deposit insurance.
Motive Financial products are not available to Québec residents.

Summary of our selections

Best HISAs
- Scotiabank MomentumPLUS Savings Account
- Simplii Financial™ High Interest Savings Account
- CIBC eAdvantage® Savings Account
- Tangerine Savings Account
- Meridian High Interest Savings Account
Best TFSA HISAs
- Tangerine Tax-Free Savings Account
- CIBC TFSA Tax Advantage Savings Account
- AcceleRate Variable Tax-Free Savings Account
- WealthONE Tax-Free Savings Account
- Hubert Financial High Interest Tax-free Savings Account
Best RRSP HISAs
- Tangerine RSP Savings Account
- CIBC RRSP Daily Interest Savings Account
- motusbank RRSP savings account
- Hubert’s Happy Savings RRSP
- Motive RRSP Savings Account

Scotiabank MomentumPLUS Savings Account

Earn a savings rate of up to 5.00%* interest for a limited time. No minimum balance required. Conditions Apply.

Learn How

Best Savings Accounts from the Big 6 Banks

Top options from Canada’s largest financial institutions.

Bank	HISA	TFSA	RRSP
Bank of Montreal (BMO)	BMO Bank of Montreal Premium Rate Savings	BMO Tax-Free Savings Account (TFSA)	BMO Registered Retirement Savings Plan (RRSP)
Canadian Imperial Bank of Commerce (CIBC)	CIBC eAdvantage Savings Account	CIBC TFSA Tax Advantage Savings Account	CIBC RRSP Daily Interest Savings Account
National Bank of Canada	NBC HISA	NBC Cash Advantage Solution TFSA	NBC Cash Advantage Solution RRSP
Royal Bank of Canada	RBC High Interest eSavings Account	RBC Tax-Free Savings Account (TFSA)	RBC Registered Retirement Savings Plan (RRSP)
Scotiabank	Scotiabank MomentumPLUS: Ultimate Package for MomentumPLUS	Scotiabank Savings Accelerator Account TFSA	Scotiabank Savings Accelerator Account RRSP
TD Bank	TD High Interest Savings Account	TD Canada Trust High Interest TFSA Savings Account	TD RRSP Daily Interest Savings Account (DISA)

Methodology

NerdWallet Canada selects the best savings accounts based on several criteria including 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

Though they didn’t make it into our picks for the best overall savings account, the accounts below are also solid choices that can help you meet your savings goals.

Hybrid accounts combine competitive interest rates of savings accounts with the flexibility of chequing accounts.

If you’re comfortable managing your money digitally, consider these online-only accounts from virtual banks.

Non-registered savings from online banks

Simplii Financial™ High Interest Savings Account
Tangerine Savings Account
motusbank High Interest Savings Account
Motive Savvy Savings Account
Oaken Savings Account

High-interest TFSAs from online banks

Tangerine Tax-Free Savings Account
AcceleRate Variable Tax-Free Savings Account
Hubert Financial High Interest Tax-free Savings Account
Peoples Group Tax-Free Savings Account
Ideal Savings TFSA

High-interest RRSPs from online banks

AcceleRate Variable RRSP
Motive RRSP Savings Account
Achieva Financial RRSP Savings Account
MAXA Financial RRSP Savings

Things to know about savings accounts

By Hannah Logan

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.

» Make sure you understand the basics: How interest rates work in Canada

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.
High-interest savings accounts (HISAs), which earn a higher rate of interest but may come with more restrictions.
Hybrid accounts, which offer the benefits of chequing accounts with the ability to earn interest.
Joint savings accounts, which are accessible to more than one person, such as a married couple.
Kids savings accounts, which parents and guardians can open for children and teens.
Senior savings account, which offers discounts and advantages for senior citizens.
Foreign currency savings accounts, such as USD savings accounts for people who want to deposit U.S. dollars without exchanging currency.
Business savings accounts, which separate business savings from personal savings.
Registered savings accounts, such as tax-free savings accounts (TFSAs) and registered retirement savings plans (RRSPs), which are registered with the Canada Revenue Agency (CRA) and offer tax benefits.

» See our picks: The best high-interest savings accounts in Canada

How savings accounts work

When you store your money in a savings account at a bank or credit union, the institution may lend those funds to other clients. However, your money is always accessible to you when you need it, and you’ll typically earn a small amount of interest. Your savings account may have rules about how many withdrawals you can make each month, but it’s typically easy to access your funds when you need them, and you can deposit as much as you’d like.

Since savings accounts are designed to help you save money, they don’t tend to come with debit cards or cheques like you’d get with chequing accounts. If you have chequing and savings accounts with the same institution, you may be able to link them both to your debit card, but you may be charged a fee for using your debit card to withdraw money from your savings account.

To avoid potential fees, your best bet is to transfer the money from savings into chequing when you need it. If you have a smartphone, you can often do this via online banking or your financial institution’s app.

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. Interest on savings accounts is often 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.

» MORE: How compound interest makes your money grow

How to choose a savings account

Savings accounts are offered by banking institutions across Canada, but that doesn’t mean you should pick one at random. Instead, compare a few different features to ensure you get the best option to suit your needs. Here are some things to consider when choosing a savings account.

Interest rate

How much interest will you earn on the money in your savings account? Keep in mind that some 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 and not focus solely on the promotional rates so 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 in your account at all times if you want to earn interest. For example, your account might require a minimum balance of $1,000. If you can be sure you will always have that minimum amount in place, that’s fine. However, 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 limit on the number of free transactions you get per month. Pay attention to the fine print and check to see how many withdrawals are allowed each month, whether you can make free e-transfers, and if there are other service fees to note.

Convenience

You’ll want to make sure it is easy to withdraw your money when you need it. Choose a savings account that’s convenient by considering your banking preferences.

If you prefer to do your banking in person, you’ll want to choose a financial institution with a physical location rather than an online-only bank. In that case, many 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 easiest to open a savings account there, too. Plus, it will be simple to move money back and forth between the accounts.

If you’re comfortable with 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, consider whether the digital experience is convenient and offers everything you need. Is there a mobile app? Is the online banking interface easy to use? Can you call a customer service representative for questions?

» See our picks: The best online savings accounts in Canada

How to open a savings account

Opening a savings account is a pretty easy process and can be done in person or online depending on your financial institution. The process should only take a few minutes, but you will need to meet a few requirements and share some personal information.

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. Many banks and credit unions list these requirements on their websites, or you can contact them to ask about this option.

To open your own savings account, you’ll need to be the age of majority in your home province or territory. You will need to show an official government ID and provide personal information, including your:

Social Insurance Number (SIN).
Address and phone number.
Date of birth.
Email address, if you plan to use online banking.

Children and younger teens can open a kids savings account with a parent or legal guardian.

» DISCOVER: 8 easy ways to start saving money

When to use a savings account

A savings account is a great place to keep money to help you reach your savings goals. In fact, you could choose to have more than one savings account if you’re saving towards multiple goals at the same time and want to separate your progress towards each one.

Some experts recommend using a savings account to save for something you want to buy in about three years or less, such as:

A vacation
Next year’s taxes
A wedding
Home renovations
A new car
An emergency fund

Basic savings accounts give you easy access to your money accounts typically have fewer rules and no limits on deposits.

For longer-term savings goals, such as retirement or a down payment on a house, a basic savings account might not be the most efficient choice That’s because interest rates are typically quite low, so you won’t earn as much as you could with other options, such as a registered retirement savings plan (RRSP) or guaranteed investment certificate (GIC). And you’ll pay taxes on the interest you earn in a non-registered savings account.

It’s also not generally a good idea to use a savings account for day-to-day transactions, since many savings accounts limit the number of transactions you can make before paying fees. Instead, use your chequing account for daily banking needs.

» Plan for the future: How much money do you need to retire?

Are savings accounts taxable in Canada?

Yes, you will have to pay income tax on any interest you earn in your savings account. Every year, your bank or financial institution will send you a T5 slip that shows how much interest you earned. You’ll claim this interest income along with all other personal income on your tax return.

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. However, these accounts come with strict contribution and withdrawal rules and they aren’t a replacement for a basic savings account.

» See our picks: The best high-interest TFSAs in Canada

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:

Chequing accounts.
RRSPs.
TFSAs.
High-interest savings account (HISAs).
Term deposits, like non-redeemable GICs, that lock your money away for a set period of time in exchange for a higher interest rate.
Investments options, such as bonds, exchange-traded funds (ETFs), market-linked GICs, and mutual funds, will help your money grow faster than it will in a savings account, but their value can also decrease if the market goes down.

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

Yes, your savings account is as secure as any other type of bank account. Many Canadian banks are covered by the Canada Deposit Insurance Corporation (CDIC), which 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 and ensure that nobody else can access your finances.

» MORE: How does CDIC deposit insurance protect your money?

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