Best High Interest Savings Accounts In Canada 2024 - Interest Rates Are UP!
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- čas přidán 22. 05. 2024
- If you don’t have a high interest savings account… why not? It’s literally a better version of a regular savings account! Saving accounts are pretty straightforward - you typically put money that you’re saving for something in them, whether that’s long-term savings, like an emergency fund, or short-term savings, for an upcoming purchase that you know you’ll be making.
The thing is, they don’t do anything for you - they literally just keep your money sitting there waiting for you - ideally you’re not paying any fees or anything like that to use it, but you also aren’t getting anything back. The good news is that high interest savings accounts exist, too!
In this video, we'll cover why you need to switch to a high interest savings account, and what accounts have the highest interest rates available right now.
Make sure you check out the high interest savings accounts that we use, linked below!
➡️ EQ Bank Personal Account (up to 4% interest) - click.linksynergy.com/fs-bin/...
➡️ Neo Money Account (4% interest) - neo.cc/refer/N8U6K3S9
➡️ Wealthsimple Cash (4% interest) - my.wealthsimple.com/app/publi...
➡️ Simplii Financial High Interest Savings Account (6% for 5 months) - api.fintelconnect.com/t/l/65a...
0:00 Why you NEED to be using a high interest savings account
1:58 The big 5 banks current interest rates
6:07 The highest interest rates available right now
18:17 Should you take advantage of short term promos?
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Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
Do you use a high interest savings account? 👀 Let us know!
Hi guys, Is your EQ account in a TFSA or just a regular savings account, due to the tax increment at the end of the year. so do you file t5? hope you respond. Thanks.
Some of these banks ought to be ashamed of calling their accounts "high-interest savings accounts" when they offer minuscule returns 😢
Correct agree.
Exactly. All while they making themselves money using your savings.
Really appreciate all of your research and informative videos! I have a question - is there a reason you guys don't switch to a new bank with 4% vs your current EQ 2.5%? I know you said that they've consistently had competitive rates, but there seems to be a bit of a difference between 4% and 2.5% - are you not switching out of comfort as well? Thank you!
Do you have a sheet that lists everything you compared in the video?
Great video guys! I believe you forgot to mention that Wealthsimple bumps the interest up to 4.5% when direct depositing payroll of at least $2,000/month
Thank you! + thanks for sharing that 😊
I think you can get 5% if you paycheck deposit 2k/month and have over 100k...
Only problem is you can’t take cash out from them. I pay for most things in ca sh for now. Until digital currency comes in . Then we’re screwed.
is there w draw back in opening high interest savings account until the promotion and then move to a new bank with better rate, is there any hit to your credit score or record if you close the previous savings account?
I use CASH HISA ETF in my TFSA.
Clarification for Wealthsimple Cash account, you don’t actually need 100,000$ in the cash account to get the 4.5% interest, you can have it across ALL your accounts (TFSA,RRSP,etc). Same applies for the 500,000$ one.
Amazing! Thank you 😊
If you are going to clarify, WealthSimple Cash account is NOT a savings account, it is a prepaid credit account that earns interest.
It's 4% if you have less than $100,000. Add +0.5% if you have paycheck direct deposit on making over $2k/month take home. And it caps out at 5% max.
Also it’s not $500k for one person, it’s for a household - let’s say if a couple have a total of $500k they can reach out to have their accounts linked and both upgraded to Generation, to enjoy the 5% in Cash account.
@@robcass8127 still better then the big banks , 4% back on what money you have in it
Hello! I'm about to open a TFSA account to start investing in stock ETF and was wondering if you guys still fully in VEQT ETF? Should i diversify? Also, let's say one day I max out my TFSA ( long ways from it since I have 0$ at the moment in it ) and withdraw the full about, does it mean my TFSA room is reset the following year, or will I only be able to get whatever the amount is for that new Year? ( example ; Make 95k in TFSA, widthdraw 95k. the following year, do i have 95k + new amount for the year of room, or only the new amount for the year? ) hope whatever i'm trying to say makes sense. I tried googling it and all it says is the TFSA room is reset in the new year.
Thanks for your video. I have questions. I have been work in canda for 3 month I am temporarily worker. Can I open account with this banks? Could I have problems with pay more taxes?
A little detail to correct is that Wealthsimple Cash card isn’t a Visa card anymore but Mastercard and is a debit card .
do you guys have the link about BMO interest savings account sale until may 31?
Beautiful summary guys, im with Tangerine with there 'lottery' style 5+% savings rate, i specifically tune into 'Red Flag Deals' forums where people across Canada post whenever they get rates and we all kinda discuss there 😅... One recomnendation is please consider adding a graph AFTER presenting all these rates showing the growth of $1K after a year (as you said). It will make us visual learners appreciate it more + its easier to share and spread your channel to other folks when they see your namr and graph easily presenated. Cheers!
Thanks so much! + thanks for sharing and for your suggestion - we’ll keep that in mind for future videos 😊
Can you do a video explaining how gic vs mutual funds words. Also comparing against different banks in Canada
EQ Bank is my favourite! I like the interest rates and the 'Any ATM' bank card. The second is Tangerine, because it's backed by Scotia bank😁
And I believe with wealthsimple if you have regular deposits of $2,000 from your pay you will get a bonus of 0.5 so total of 4.5% and you don't need to keep $100,000 in your account. Great information thanks.
Thank you! 😊
Good info. btw iA has High Interest Savings Account for 4.45%. May not be insured by CDIC.
Thanks! 😊 Also, it might be a good idea to take a deeper look into the details of the account. iA along with other insurance companies have been known for predatory practices in the past. Mixing insurance with savings and investments usually isn’t a good idea.
Any Canadian finance book recommendations for beginners?
Hi, does opening a new checking account or a high interest savings account with Simplii result in credit checks? Would they be soft or hard?
As a resident of Canada you have the right to open a bank account regardless of your credit status. This means there’s no credit check required to open a bank account, so you should be good to go with Simplii 😊
Hi, thanks for your videos. It's really clear and interesting. Just a note that EQ Bank High Saving account at 4% is a promotional offer, for 12 month max. Not a permanent one. I wanted to open an account and read the details. After that period it goes down to 2.5%.
Thank you! 😊
I'm debated between Neo and EQ bank. it'll be my first HISA I open outside of the big banks. are the interest earnings received with tax deductions or are you taxed at the end of the taxation year? Also, for either of these, does a physical card get mailed out?
Yes, all interest earned is taxable income and you will receive a T5 at the end of the year. Also yes, both EQ and Neo (as well as Wealthsimple and KOHO) will mail you a physical card.
I was offered 6% interest. Forget when it began but ends May 31st with Tangerine. Keeping shopping and trading up as long as there are no transfer fees
just moved over my income to be coming in to my EQ bank (80%) and then the rest to be deposited into my regular big-bank account, so there's still something in there for automatic withdrawals. always loved your videos and have helped me to make this decision!
We’re happy to hear that! So glad our videos helped 😊
Do only big banks do automatic withdrawals?
Manulife advantage account was not mentioned in your list. Is there a reason. I see manulife give 5.75 for 4 months. Is this a good bank to consider?
Great video guys learn a lot from yall 😂
Thank you so much! 🙏🏿🙌🏻
Great video!! Is it possible for me to have a savings account with a platform that's not my main one? Let's say i'd like to open a savings account with wealthsimple on the side?
Absolutely! You don’t have to have all of your accounts with the same financial institution 😊
Hello, thank you for making this video, I am searching for a high interest rate saving account and considering to use WS since I opened TFSA account and why not use this company. Question, I am bit confused about High interest rate cash account and high interest rate chequing account which account is similar to high interest rate saving account? I am planning to transfer from BMO saving account to WS. Thank you for feedback
For the WS Cash account you don't need $100,000 to access the 4.5% rate. I definitely don't have that much in there haha, but I have the 4.5% rate because I have my paycheque direct deposit going in there.
Thanks for sharing that! 😊
also its between all accounts i believe for those rates. If you have 500k with WS.
@@CptShotta Exactly, the 100k and 500k minimum includes all investment accounts.
I have a question. I guess the interest would be added to the income tax, right? How do you manage the tax filing? Does WS provide you a additional form?
You guys did my research for me! Saved me a whole day! Thanks so much!
We’re so happy to hear that 😊 that’s our goal!
Nice video but a few things: the example interest earnings are not factoring in compound interest, which will even further separate the Wealthsimple/KOHO/Neo/etc crowd from the traditional big banks and their pathetic rates. Regarding Wealthsimple, you can get 4.5% interest without any minimum balance or fees simply by setting up direct deposit with them (this puts them ahead of Motive/Saven as far as no-fee HISA rates), furthermore, the 100k and 500k balances to hit 4.5% and 5% interest respectively is not your Cash balance but your total combined balance of all your accounts with Wealthsimple (including any TFSA, RRSP, non-registered accounts, etc). So you could have 500k invested in stocks/ETFs/options/crypto and still benefit from a higher interest rate on your Cash account with a much smaller balance.
Is there any way, to open High interest savings account under TFSA. So, we can Cash those interests Tax Free ??? As in the end, we have to fill tax on the money earned from this Account
We do! Our HISA and TFSA are at 4.20%.
Some financial institutions / platforms offer high interest rates on cash held within a TFSA, as well - so you could absolutely do that! Ideally, you'll use your TFSA to invest (as that's where you benefit from the tax-free piece the most), however it is an option, especially if you haven't maxed out your TFSA yet.
Love my EQ! Been using it for 2 years now since i learned it from your last video!
Amazing, we love to hear that! 😊
wait great video but i have scotiabank and i dont get charged for etranfers
also, I thought EQ went up to 4% again as of maybe a few weeks ago? did it not apply to all their accounts?
We covered this in the video at 7:38 😊 it’s up to 4%, but with conditions!
@@stephandden ohh oops, might've missed that part! Thanks guys! Sorry about that lol
But it's weird cuz there was some communications sent out that the 4% was effective as of a few weeks ago, but I might've not read the fine print in that email
Can you guys make a video on buying american stocks as a canadian?
Yes, we can add that to our video ideas list! 😊
So I'm currently with TD and have Wealthsimple, so should I throw a bunch of money into the Wealthsimple cash account? I'm new to stocks and all this sort and have no idea what I'm doing
Great video, as always! Regarding WealthSimple, you get the 4.5 % interest on the savings account when you have $100 000 in assets on their platform. This can be your TFSA, RRSP, stocks, the savings account, etc. combined. The money doesn't have to exclusively be in their savings account. Cheers!
Thanks so much!
Beautiful BC here thanks for your great videos. I have reg dinosaur bank BMO but have EQ Bank as well and keep all my extra money in TFSA not savings regular or hisa mainly because their taxable accounts, not tax free. All my income runs thru my TFSA accounts be it EQ Bank or Wealthsimple, and you don't lose contriubution or gains room. Bmo chequing have to keep $4000 in at all times to save on charges but pays no interest but wouldn't want them paying interest as it's useless taxable interest. lol
If you have room in your TFSA, you can buy CASH, and get 5% interest without having it get taxed.
please. explain?
Yes, that's an option if you'd like to go that route - thanks for mentioning 😊
A few things to note for anyone looking into this - buying an ETF like 'CASH.TO' gives you comparable rates to a HISA, however remember that as it is an investment, your money wouldn't be CDIC insured. Additionally, once you do have enough money to max out your TFSA, at that point you may want to consider using your full contribution room for investments that offer the potential for a higher return.
Hi Steph & Den, I have a question for you Wealthsimple investing journey. Did you ever sell/transfer your assets from your roboadvisor account to your self-directed account or did you leave it to sit in there?
Hi! Yes, I (Steph) transferred my portfolio from Wealthsimple Invest to Trade, instead - I talk about it in detail in our video called ‘Wealthsimple Invest Portfolio Results After 3 Years’ 😊
can you guys do a new video about cash back credit cards? and how to get the most out of them please?
Yes, we can add this to our list! 😊
Do the promotions apply to current clients as well or only new clients?
It depends on the financial institution / platform, and what the promotion is - it should state that on their respective websites, though 😊
Coast Capital?
You guys are a gem 💎
🙏🏿🙏🏻 thank you!
Any finance book recommendations??
“I will teach you to be rich” really really good. FYI it’s US based so some of the investing info might be different but the rest is great!
I’d love to see a version of this video for business bank accounts. 😄
Thank you for the suggestion! 😊
great video :)
Thank you! 😊
Really nice vid. As a suggestion, check out Ari Gutman. You might already know him, as he's a noted Dividend investor. My style is allot like his. You both being in your 20's will probably benefit!!
Thanks! We’re focused more on the growth of our portfolios as opposed to income generation through dividends because we’re young 😊
Great video!
Thanks for the information, it’s always a pain looking through all the high interest saving accounts and seeing which ones have the highest rate!👍
Thank you! That’s what we’re here for 😊
TD had a personal offer for me to open up a HISA and get a cash bonus of a certain tier if I transferred a certain amount from another financial institution to the account and maintained it for 180 days. But as explained in the video, you're kinda locked in at $10K if you want to continue earning the 1.85% interest rate and if you go below a single cent, you're not getting anything at all. When you're locked in, you lose the liquidity of your money and how you can use it, so I'm pretty hesitant with going ahead with the offer. Plus, I had just migrated from HSBC to RBC and RBC decided to give all former HSBC clients the 5.5% interest rate for 3 months.
For the meridian credit union -I thought they were cdc protected ? Can you please explain this more ?
Provincial credit unions (like Meridian - it’s Ontario specific!) aren’t protected by CDIC - but, they’re protected by the FSRA (that’s the Financial Services Regulatory Authority of Ontario, specifically). The FSRA provides coverage of non-registered insurable deposits, such as a chequing or savings accounts, up to a maximum amount of $250,000, while deposits in registered accounts, such as RRSPs or TFSAs, have unlimited coverage (per their website) 😊
What’s eq banks age requirement? Thanks
The age you are considered an adult in your province
I freaking love your videos. Keep it up!
We love to hear that! Thank you! 🙏🏿🙌🏻
If you plan on keeping your money with TD/RBC better to open a brokerage account with them and buy the investment savings account which pays around 4.55%-4.7% and is CDIC insured
Is there a summary table?
It’s on our website - we have a blog post detailing all of the accounts 😊
I think you missed the HISA with DUCA credit union - currently 5.25% interest (subject to change), available only to Ontario residents and deposits are FSRA insured like other credit unions.
That one didn’t come up in any of our research! Do you use this one yourself?
I think Saven is also only available to ON residents
5.25% at DUCA credit union
NEO. there's no comparison out there.
We love Neo!
Tangerines been doing a 5-6% promotion on interest for the last 2 years
It looks like they just brought it back (after we’d filmed this vid!) for the savings account - when we checked, the promo was only for registered accounts!
Glad to see they have it again 😊
im a husband of an international student here in ontario canada. am i allowed to use ws or cannot?
I have an EQ account that I use for emergency fund/temporary parking spot.
Amazing 😊
5.25% at DUCA credit union
👏🏿👏🏻
For WS Cash, as long as you have $100k in investments or cash, then you will unlock 4.5% so the $100k doesn't need to all be in Cash. If you invest with WS, then it unlocks that 4.5% pretty quickly.
What to do when hits 10% inflation rate?????????
If that ever happens, we’ll definitely have a video updating you! 😊
But in general, when the inflation rate goes up, interest rates at banks go down in order to encourage us to spend more. That means that there isn’t really an incentive to keep as much money at the bank.
Actually for wealth simple, it is 100k or 500k total deposits in all accounts, so that includes TFSA, RRSP, etc. I currently have just over 100k in total deposits in total for my TFSA, RRSP, FHSA and cash and i receive 4.5% interest on my HISA cash account and you get a free USD account :)
Congrats on having that amount saved up! 👏🏿👏🏻
currently maxed tfsa so using a high interest account to save for a house down deposit
Amazing! 👏🏿🙌🏻
Nah, FHSA. Gives you RRSP tax benefits for $8k/year for up to $40k that you can put towards a down payment on a house.
@@vhateverlie after TFSA and fhda maxed out then us le hisa?
@@KrazEWillY probably RRSP's first to lower your tax liability then finally a personal non-registered account which would be your high interest savings account or a generic investment account with stocks and bonds.
DO I HAVE TO PAY TAX FOR WHAT i EARNED FROM EQ?
Yes, the amount you earn is added to your taxable income at the end of the year 😊
Does Neo and koho do a credit check for this? Can you do a video on koho.
Yes, Neo does a credit check
@@nataliap4153 For their credit card, yes, but this video is regarding savings accounts and no, Neo does not perform a credit check to open their 'Money' or 'High Interest Savings' accounts (which is what is discussed in the video).
TLDR;
TD = 1.8% (if minimum bal is 10000$ ) otherwise 0%
CIBC = 0.65 %
Scotiabank = 1.3%
BMO =1.9 %
RBC = 1.7%
Wealth Simple = 4% or (if mab 100k+ or 2k Direct Deposit)= 4.5%
EQ = 2.5%
NEO = 4%
Your TD ePremium amounts are wrong. It's $0 if you have $1000 (that's correct), but you also said it would be $0 if you had $10,000 in the account and that is wrong. $10,000 nets you the 1.85% rate, so you'd earn $185 (well, since it compounds daily and pays out at the end of each month, it would actually be slightly more since you're earning the 1.85% on the previous months of earned interest, but I'm too lazy to do that math right now.) 😊
Good point re: the $10,000 😊
Morning Steph!
Good morning! 😊
I’m gonna keep chasing those promotion every year to stick it to those bankers . Loyal doesn’t pay. If I keep moving bank to new saving account every year, assuming with promotion I should average over 3.5% yearly
Love to hear it 👏🏿👏🏻
Love the vids guys keep it up 😁
Thank you! 🙏🏿🙌🏻
3:50 title is CIBC but the text shows TD ePremium savings account 🤷🏻♂️ …
Oops! Small editing error 😊
Funny I was just thinking about this since my bank only pays me 1.3% this video feels like it got sent to me by the gods thanks guys. ❤
We love that timing! 🙏🏿🙌🏻
wrong information,
wealth off 4.5% if have 100k with wealthsimple combined incl investment account etc… (or 5% or have 500k invenstments), no need for 100k in just cash.
Not sure if other people agree, but having that slide for gains on 1000 and 10000$ is a waste of time, specially when you do you it for every bank. Maybe it would have been better to show a table with similar banks and their respective interest rates. Anyway, just a few suggestions to avoid redundancy, I found myself skipping through most of the video.
Thanks for your feedback 😊
I am getting 6% from tangerine as of now for 5 months promotion. Once this ends, I ll move my money somewhere else
Love that you know the promotion details and are going to move your money when it ends 👏🏿👏🏻
the statistics for money earned per 100 and 1000$ is a pretty useless statistic, why not just have side by side comparison of the interest rates to show how each one is
Thanks for your feedback 😊
Your take on Wealthsimple is wrong/misleading. You can get a 4.5% interest rate if you have over 100k of assets with wealthsimple across all accounts (eg, RRSP, TFSA, Cash Accounts, Crypto), not just 100k sitting in the cash account. Same goes for that 5% rate with 500k invested across all accounts, not just the cash account.
Yes, we've addressed several comments mentioning this 😊 thank you!
RBC is weak in interest payments my physical bank. I have both online banks and physical ones. I keep most of my savings online banks better interest.
Good video to show what’s out there. Don’t stay loyal to banks who give you nothing.
Thank you! 😊
The real ones are in the comments. Going to go to bat for Wealthsimple but ya'll out in force
Seriously out in force! 😂
Can you borrow me 499,500$ if I cover the rest?
Simpli financial is scam
It’s not - Simplii Financial is the digital banking division of CIBC, one of Canada’s biggest banks. It’s also CDIC insured (and it’s been Dennis’ primary bank for the past several years) 😊
I hear EQ has a lot if negative reviews.... Any truth to this ?
Personally, we haven't had any issues over the past 3-4 years (that's how long we've been using EQ Bank for our high interest savings account- and we've found it to be a simple, easy to use platform!), but if we ever do we'll absolutely let you know / share that on our channel.
These people never reply
We reply to the majority of our comments 😊
Even though you get some interest on your money you have to claim it on your taxes 😂
Yes! Although, you still end with more money than you would without earning that extra interest 😊
@@stephandden do you have a video talking about this topic? Like how do you claim it on your taxes? I just opened my first savings acct with EQ and I don't know how to file the interest earned for next year. thank you!
Hey Crystal! Your bank provides you with a T5 tax slip every year and they usually send it to CRA on your behalf. You can also find this document in your EQ Bank account (Go to the "My accounts” tab, and click on “Tax documents") just incase you need it or in the event that it doesn't show up when filing you taxes.
The T5 slips basically shows how much interest you earned from your high interest savings account. Hope that helps :)
@@stephandden thank you for explaining! that really helps 😊