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Top savings account interest rates


top savings account interest rates

Access to your money 24/7 and no monthly maintenance fees when minimum balance is maintained. Want to compare savings accounts side by side? If you're looking for the best savings accounts, you want a jaw-dropping APY and low or no monthly fees. Our experts reviewed hundreds of savings accounts. Given that interest rates change daily, make sure you check the table to get the best rates. Plus, several of the banks on our list have awesome.

Top savings account interest rates -

9 Best High-Yield Savings Accounts in 2021

The savings offers that appear on this site are from companies from which MoneyCrashers.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MoneyCrashers.com does not include all savings companies or all savings offers available in the marketplace.

Right now, the U.S. national average interest rate on savings account balances is nowhere near enough to keep pace with inflation.

The good news is you can do better — a lot better — with one of the high-yield savings accounts featured here.

Best High-Yield Savings Accounts in 2021

We evaluated dozens of online banks, traditional banks, and credit unions to find the 9 best high-yield savings accounts available right now.

All of these accounts yield multiple times the national savings account average. They’ll help build your emergency savings fund faster and fight back against inflation.

Each also does one thing better than any of the others — whether that’s paying the best yield, delivering the highest new account bonus, or effortlessly automating the savings process.


Best Overall: GO2Bank

Go2bank Logo

As a GO2Bank account holder, you’ll earn up to 7% cash back on eGift Card purchases made in the app1.Amazon gift card purchases earn 3% cash back. 

Plus, earn 1% APY2 on savings up to $5,000 and get paid up to two days early with ASAP Direct Deposit.TM 3

This offer is available nationwide.

Additional features:

  • Avoid the $5 monthly fee with eligible direct deposit.

Learn More

1Active GO2bank account required to receive an eGift Card. eGift Card merchants subject to change.

2GO2bank, Member FDIC. Interest paid quarterly on the average daily balance of savings during the quarter up to a $5,000 balance and if the account is in good standing. 1% Annual Percentage Yield (APY) as of January 2021. APY may change before or after you open an account. Fees on your primary deposit account may reduce earnings on your savings account.

3Direct deposit early availability depends on timing of payor’s payment instructions and fraud prevention restrictions may apply. As such, the availability or timing of early direct deposit may vary from pay period to pay period. The name and Social Security number on file with your employer or benefits provider must match your GO2bank account exactly or we will decline your deposit.


Best for High Yield (APY): Citi® Accelerate Savings

Citibank National Association Logofilepath (2)

Your Citi® Accelerate Savings account earns up to 0.50% APY on all balances of at least $1 (in select markets). That’s 12 times the national savings account interest rate.1

Additional features:

  • Automate your savings with Citi’s Auto Save feature to build your emergency fund faster.
  • Get cash from more than 65,000 fee-free ATMs nationwide.
  • Link your Accelerate Savings account to a qualifying Citi checking account to earn ThankYou Rewards points redeemable for gift cards, cash, and more.

The Citi® Accelerate Savings account is available to customers in AA, AE, AL, AK, AZ, AR, AS, CO, DE, GA, GU, HI, ID, IN, IA, KS, KY, LA, ME, MA, MI, MN, MP, MO, MS, MT, NE, NH, NM, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VI, VT, WA, WV, WI, WY, and select markets in Florida and Illinois.

1Rate is current as of October 07, 2021

The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired or changed.


Best Account Opening Bonus: PNC Virtual Wallet

Open a new PNC Virtual Wallet by Dec. 31, 2021, and complete qualifying activities to earn up to $300

To earn the $300 bonus, simply open a new PNC Virtual Wallet with Performance Select and establish total qualifying direct deposit(s) of $5,000 or more to the Spend account.

Additional features:

  • Get 3 accounts in 1: Spend for day-to-day spending, Reserve for short-term savings bucket, Growth for longer-term savings

This offer is available in CA, TX, AZ, NM, CO, PA, FL, OH, WV, DE, NJ, SC, NC, GA, KY, IN, MI, IL, MD, DC, WV, and WI.


Best for Low Fees: Discover Bank Online Savings

Your Discover Bank Online Savings Account has no monthly maintenance fee or minimum balance requirement, ever. It also has no fees for excessive withdrawals, no overdraft or NSF fees, and no fees for bank checks.

Additional features:

  • Earn 0.40% APY on all eligible balances (rate current as of Oct. 8, 2021)

This offer is available nationwide.

Apply Now


Best Checking and Savings Combo: Aspiration Spend & Save Account 

Aspiration Logo

Use your combined Aspiration Spend & Save Account to seamlessly manage checking and savings balances. Plus, earn up to 5% cash back at Conscience Coalition merchants and up to 10% cash back after you upgrade to Aspiration Plus.

Additional features:

  • Earn up to 1.00% APY* on Save account balances after you upgrade to Aspiration Plus 
  • Spend at least $1,000 in cumulative debit card transactions within 60 days of opening your Aspiration Spend & Save Account to earn a $100 bonus (terms apply)

This offer is available nationwide.

Apply Now

* The Annual Percentage Yield (“APY”) associated with the Aspiration Spend & Save Account is available only to customers enrolled in Aspiration Plus. APY is variable and accurate as of [current date]. Rates may be changed from time to time without notice. To earn 1.00% APY interest on Aspiration Save Account balances up to and including $10,000.00 in any calendar month, customer must be enrolled in Aspiration Plus and spend $1,000 or more, monthly, with their Aspiration debit card. Balances over $10,000.00 will earn 0.10% APY. If the requirements are not met each month, the APY will be 0.25% on Save Account balances up to and including $10,000.00. Balances over $10,000.00 will earn 0.10% APY. Minimum deposit required to open an Aspiration Save Account is $10.00. Enrollment fee and Pay What Is Fair fees debited directly from the Aspiration Save Account could reduce earnings. Customers not enrolled in Aspiration Plus will not earn interest.  For more information, click here.


Best for Savings Automation: Chime

Chime Bank Account

Automate your savings in two different ways with Chime. First, automatically set aside 10% of every paycheck with When I Get Paid. Second, automatically round up debit card purchases to the nearest $1 and save the difference with Save When You Spend.

Additional features:

  • Earn 0.50% APY* on all eligible savings balances

This offer is available nationwide.

Apply Now

*The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of November 1, 2020. No minimum balance required. Must have $0.01 in savings to earn interest.

Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.


Best Mobile Experience: Capital One Performance Savings

Capital One’s powerful mobile app gives you near-total control over your Capital One Performance Savings account. Use it to make mobile check deposits anytime, set and track savings goals, set up an automated savings plan, make secure P2P transfers, and more.

Additional features:

  • Earn 0.40% APY on all eligible savings balances

This offer is available nationwide.

Learn More


Best for Tax-Advantaged Account Options (IRAs): Ally Bank Online Savings Account

You can structure your Ally Bank Online Savings Account as a traditional, Roth, or SEP IRA. Ally IRA balances earn the same great interest rate as regular savings balances (currently 0.50% APY).

Additional features:

  • Earn up to 0.25% APY on linked balances in your Ally Bank Interest Checking Account

This offer is available nationwide.

Learn More


Best Deposit Insurance Coverage: SoFi Money Cash Management Account

SoFi Review

Your SoFi Moneybalance is FDIC-insured up to $1.5 million. That’s 6 times the usual limit.

Additional features:

  • Get paid up to 2 days early with early direct deposit
  • Earn 0.25% APY on eligible account balances with qualifying direct deposit
  • Get cash fee-free at more than 55,000 Allpoint ATMs

This offer is available nationwide.

Apply Now


Best High-Yield Savings Account Alternatives

Don’t see what you came for yet? Consider our top 2 HYSA alternatives for people who want something a little different.

Best Rewards Checking Account: Discover Bank Cashback Debit Account

The Discover Bank Cashback Debit Account delivers 1% cash back on the first $3,000 in eligible debit card purchases each month. There’s no minimum balance or transaction requirement to earn cash back either.

Additional features:

  • No monthly maintenance fee
  • No hidden account fees
  • Freeze and unfreeze your account from the Discover mobile app

This offer is available nationwide.

Learn More


Best High-Yield Checking Account: Quontic High Interest Checking

Make 10 or more qualifying Quontic High Interest Checking debit card point-of-sale transactions valued at $10 or more in a statement cycle. You’ll earn:

  • 1.01% APY on balances up to $150,000
  • 0.35% APY on balances between $100,000.01 and $1,000,000

Additional features:

  • Pay no ATM fees at ATMs in the AllPoint®, MoneyPass®, and SUM® networks or at participating Citibank® ATMs

This offer is available nationwide.

Learn More


Methodology: How We Select the Best High-Yield Savings Accounts

We evaluate high-yield savings accounts on 8 key metrics that can make or break your experience as an account holder. For each metric, we select the account that surpasses all other competitors — giving you the confidence you need to choose the product that works best for you.

High Yield (High APY)

“What’s the interest rate?” is probably the first question you ask yourself when evaluating a savings account. A higher interest rate, or yield, means your money grows faster. When inflation runs hot, yield is your best defense against falling buying power.

Low Fees

Account fees are your enemy. The best high-yield savings accounts don’t charge monthly maintenance or minimum balance fees. They should have low or no overdraft fees and no fees for P2P transfers either.

Account Opening Bonus

It’s harder to find new account opening bonuses on savings accounts than checking accounts, but they’re around if you know where to look. See our list of the best new bank account promotions for alternatives to the standout PNC Virtual Wallet offer featured here.

Checking and Savings Combo

Many banks offer checking and savings accounts under the same roof, but only a few do both well. Our top pick, the Aspiration Spend & Save Account, promises a category-leading yield (1.00% APY when you upgrade to Aspiration Plus) and up to 10% cash back on select checking purchases.

Savings Automation

You have enough to worry about. Choose a bank that saves more of what you earn without waiting for your say-so. That might mean rounding up the change on debit card purchases, automatically setting aside a portion of each paycheck, using an algorithm to figure out how much you can safely save each week — or all of the above. 

Mobile Experience

Your bank’s mobile app should do everything its desktop banking portal does: accept mobile check deposits, execute (free) P2P funds transfers, pay your bills, manage your savings plan, and more. And it should look good on a small screen.

Tax-Advantaged Account Options

Many banks don’t bother to offer savings IRAs. Those that do help risk-averse savers preserve and grow their nest eggs. And the real standouts, like Ally Bank, offer the same great rates on tax-advantaged savings as they do on taxable savings.

Deposit Insurance Coverage

Deposit insurance protects your savings if your bank fails. (It’s rare, but it happens.) The standard limit for FDIC insurance is $250,000 per account type, per institution, but some banks go above and beyond. Standouts like SoFi Money offer $1 million or more in deposit insurance coverage.

Become a Savings Account Expert: Your HYSA Questions Answered

You have questions about high-yield savings accounts. We have answers. 

How Do High-Yield Savings Accounts Calculate Interest? (And What Is Compounding)

Your savings account’s yield — how much its balance grows each year — is a function of its interest rate and compounding frequency. 

You already know that a higher interest rate means faster growth. But what role does compounding frequency play?

Think of compounding as earning interest on interest. Compounding frequency describes how often your account adds the interest it’s earned to the original (principal) balance. The higher the compounding frequency, the longer each extra bit of interest has to earn interest on itself.

Don’t get too excited. In percentage terms, compounding frequency has a negligible impact on growth. And when interest rates are near zero, “negligible” is too generous. You have to squint to see the difference.

Here’s an illustration.

Imagine two seemingly identical savings accounts. Both earn 0.50% interest. The only difference: Account A compounds annually and Account B compounds daily.

You seed both accounts with $10,000 and make no further deposits. The interest rate remains level at 0.50%. By Year 10, how much bigger is Account B’s balance?

Account AAccount B
Year 1$10,050.00$10,050.12
Year 2$10,100.25$10,100.50
Year 5$10,252.51$10,253.15
Year 10$10,511.40$10,512.71

A whopping $1.31, that’s how much. After accounting for inflation, the difference is even smaller.

Can You Lose Funds Held in a High-Yield Savings Account?

Federal deposit insurance (FDIC coverage) protects savings balances held with member FDIC institutions up to at least $250,000. This protection kicks in if the member bank fails. 

Always, always, always make sure your bank is FDIC-insured. Otherwise, there’s no guarantee you’ll get your money back if it closes its doors.

FDIC insurance doesn’t cover everything that can go wrong at your bank. It might not reimburse you if your account is hacked and drained without your consent or if you fall victim to a financial scam. 

Do Banks Still Charge Excess Withdrawal Fees for High-Yield Savings Accounts?

Some banks continue to charge excess withdrawal fees. But a growing number of financial institutions — including several on this list — now choose to waive them.

That’s because of a long-overdue change to a Federal Reserve bylaw known as Regulation D (Reg D). For years, Reg D limited withdrawals or payments from savings and money market accounts to 6 per statement period. Banks and credit unions imposed steep fees for withdrawals in excess of this limit — often $10 or more per occurrence. Repeat offenders risked account closure.

In April 2020, the Federal Reserve announced that deposit institutions were no longer bound by the strict monthly withdrawal limit. But it didn’t require banks to make the change, so some still have excess withdrawal fees on their books.

Fun Facts About High-Yield Savings Accounts

  • The world’s first modern savings bank appeared in Brumath, France, in 1765. The first in the U.S., the awkwardly named Provident Institution for Savings in the Town of Boston, opened in 1816.
  • The average yield on a 3-month CD hit 18.6% APY in 1981. Today, the typical 3-month CD yields less than 0.5% APY. 
  • When the FDIC opened for business in 1934, it insured deposits up to $2,500. That’s about $51,000 in today’s dollars.
  • In the early 20th century, “Christmas club” accounts were popular with holiday savers. You’d make small deposits each week throughout the year, earning interest over time. Around Thanksgiving, the bank would unlock your funds — just in time for the holiday shopping season.

Editorial Disclosure: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are the author’s alone, not those of the bank advertiser, and have not been reviewed, approved, or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.

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Generally savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest is a no-brainer.

However, when shopping for an account, there’s more to consider than just the interest. You can make an informed decision by using the finder tool to compare the fees and features of several different options available. But do scroll down to read our seven editors’ picks for the best high-interest savings accounts (HISA) in Canada.

These are rates offered by Ratehub partners. You can find information about additional product options below.

You can compare high-interest rates in the table above or input your estimated account balance to compare the growth between HISAs, tax-free savings accounts, registered retirement savings plans and youth savings accounts.


Our pick for the best high-interest savings accounts in Canada for 2021

 


Best high-interest savings account rate: Saven Financial High Interest Savings Account*

This HISA may sneak under the radar, but once you see the rate you will be impressed. This online-only financial institution hits in with a strong interest rate on its HISA offering, along with no minimum balance requirements and free transfers. Saven is a division of FirstOntario Credit Union, a financial institution with roots back to 1939, and which currently has more than 126,000 member clients. Note, you will need to invest at least $25 to become a member of FirstOntario.

  • Promotional rate: None
  • Interest rate: 1.50%
  • Minimum balance: None
  • Fees: None, except for a $25 cost to become a member of FirstOntario
  • Other restrictions: Only available to residents of Ontario

Also consider: Motive Savvy Savings Account

Motive Financial, the online banking division of Canadian Western Bank, offers the highest regular interest rate on this list. As such, your eligible deposits are held at Canadian Western Bank, and protected by the Canada Deposit Insurance Corporation (CDIC; see details below). There isn’t a monthly fee, and account holders get two free monthly withdrawals. But additional transactions will cost you.

  • Promotional Rate: None
  • Interest Rate: 1.10%
  • Minimum balance: None
  • Free transactions per month: 2 free monthly withdrawals ($5 charged per additional transaction)
  • Interac e-Transfer fee: $1 per outgoing transfer (no fee to receive)
  • Fees for extras: $1.50 charged per withdrawal though non-exchange ATMs
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: Not available to residents of Quebec

Best for interest rates and no service fees: EQ Bank Savings Plus Account*

EQ Bank is owned by Equitable Bank, a Canadian institution in business since 1970. Another in the burgeoning online space, EQ Bank offers great returns on their Savings Plus account. There is no fee for the account and no minimum balance. All services, including Interac e-Transfer, are free.

  • Promotional Rate: None
  • Interest Rate: 1.25%

EQ Bank Savings Plus Account*Get more details*

  • Minimum balance: None
  • Free transactions per month: Unlimited
  • Interac e-Transfer fee: Free
  • Fees for extras: None
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: There’s a maximum balance of $200,000 per customer; paper statements are not available

Best regular interest rate at a credit union: Maxa Financial High-Interest Savings Account

Maxa is a division of Westoba Credit Union, located in Manitoba. But its accounts are open to all Canadians, and it offers an impressive interest rate on savings. There’s no fee, but account holders can expect to pay service charges for many transactions.

  • Promotional Rate: None
  • Interest Rate: 1.00%
  • Minimum balance: missing info
  • Free transactions per month: First debit of each month free
  • Interac e-Transfer fee: $2 per transfer domestically; $5 per transfer internationally
  • Fees for extras: $1.50 per debit except on the first of each month
  • CDIC insured: No, but all deposits guaranteed by the Deposit Guarantee Corporation of Manitoba, with no dollar-amount limit
  • Other restrictions: Online interface is dated

Best eSavings account: Neo High-Interest Savings Account

The Neo High-Interest Savings Account is a no-fee hybrid account that lets you spend and save—and earn cash back rewards—all in one place. Clients earn 1.30% in interest on every $1 held in the account, and can access their money from an app on their phone, making bill payments, purchases, Interace-Transfer transactions and more simple and seamless. 

 

  • Promotional Rate: None
  • Interest rate: 1.30%
  • Minimum balance: None 
  • Free transactions per month: Unlimited
  • Interac e-Transfer fee: $0
  • Fees for extras: $5.00 for each printed document 
  • CDIC insured: Deposits held in Neo Savings accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor
  • Other restrictions: Maximum balance per customer is $200,000; not available to residents of Quebec

Best regular interest rate in a hybrid account: Wealthsimple Cash*

Wealthsimple Cash* was launched in January 2020 by the Canadian online financial services provider Wealthsimple. Joining the fintech’s original robo-advisor offering and its more recently added discount brokerage Wealthsimple Trade, Wealthsimple Cash is a hybrid chequing and savings account. Unlike many of the big banks, this institution offers a high regular interest rate. Plus, as with a good chequing account, this one gives you unlimited transactions with zero fees. From the account, you can make no-fee bill payments and Interac e-Transfer transactions. If you have a Wealthsimple investment account, such as a TFSA or RRSP, you can contribute to them easily using funds from your savings account.

  • Promotional Rate: None
  • Interest Rate: 0.50%
  • Minimum balance: $1
  • Free transactions per month: unlimited
  • Interac e-Transfer fee: free
  • Fees for extras: free
  • CDIC insured: Yes, as of January 1, 2021
  • Other restrictions: none
  • Open a Wealthsimple Cash account now*

Best promotional rate: Tangerine Savings Account

The Tangerine’s regular savings account is really flexible. It doesn’t require a minimum balance, and there are no fees or service charges. The entire Tangerine banking experience is simple and friendly, and their savings offerings are the same. Account holders can set up an Automated Savings Program online to help plan and meet savings goals.

  • Promotional Rate: 2.25% for the first 150 days
  • Interest Rate: 0.10%
  • Minimum balance: None
  • Free transactions per month: Unlimited; free unlimited deposits and withdrawals at Tangerine or Scotiabank ABM Network bank machines in Canada; no surcharge or access fees on withdrawals from Global ATM Alliance machines internationally
  • Interac e-Transfer fee: Free
  • Fees for extras: None; no cost for paper statement, if desired (sent quarterly)
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: None

Best tiered interest savings account: Scotiabank MomentumPlus Savings Account

With tiered earnings on interest starting, this product acts like a GIC, giving account holders the opportunity to save more just by leaving their money alone—but with the freedom to make withdrawals if you need to. Provided no debit transactions have taken place during that time; deposits stashed for longer can earn extra interest based on the following calculations:

0.05% +

  • 0.15% after 90 days
  • 0.25% after 180 days
  • 0.35% after 270 days
  • 0.45% after 360 days

Plus, if you also have an Ultimate Package account with Scotiabank, your earn rate will be 0.10% for a limited time. The account is no-fee and self-service transfers are unlimited.

  • Minimum balance: None
  • Fees for extras: $5 per debit transaction that’s not self-service
  • Free transactions per month: Unlimited for self-service transfers
  • Interac e-Transfer fee: Free
  • CDIC insured: Eligible if in Canadian currency with a term of 5 years or less and payable in Canada
  • Other restrictions:  No paper statement available

Also Consider:

LBC Digital High-Interest Savings Account

Since 2003, Laurentian Bank has been available only in Quebec, but with the recent launch of a new digital offering at LBCDigital.ca, the institution is tempting clients from across the country. The headline news here is the high-interest rate and the fact the account has no minimum balance and no monthly fees, easily topping the best rates of most financial institutions on GICs, which lock in your money for a specified period of time. With the LBC Digital High-Interest Savings Account, you can access funds whenever you like, and frequently used services including electronic fund transfers, pre-authorized deposits, and transfers between LBC Digital accounts are included. This last is important as it means you can move your money to an LBCDigital.ca chequing account, from which you can make unlimited free Interac e-Transfer transactions.

  • Promotional Rate: None
  • Interest Rate: 1.15% on deposits up to $500,000; rate drops to 0.50% on deposits over $500,000
  • Minimum balance: None
  • Free transactions per month: Unlimited
  • Interac e-Transfer fee: Free
  • Fees for extras: None
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: Non-sufficient funds (NSF), returned items and overdrawn accounts are subject to fees, and if you close the account within 90 days there’s a $25 penalty

Didn’t find the perfect savings account?

If none of our editors’ picks sound like the right HISA for your exact financial needs, then head to our Savings Account Finder tool to compare the best HISAs in Canada from most Canadian financial institutions side by side.


Compare the Best Savings Accounts in Canada >


What is a high-interest savings account?

A HISA is a savings account that pays a better rate of interest than standard savings accounts. HISAs are offered widely by a variety of banks, credit unions and other financial institutions.

This type of account allows you to safely and securely set aside money and earn a modest return without losing the ability to access that money anytime.

It’s also great for short or medium-term savings that want to be able to withdraw from than later. People will often use a HISA to save for big costs, like a wedding, the down payments on a home, a vacation or for an emergency fund. HISAs are also smart places to stash some money during times of uncertainty or during economic downturns.

 

 


How does a high-interest savings account work?

The greatest appeal of HISAs is that they are a safe and secure place for savings to grow money slowly. Financial institutions that are members of the Canada Deposit Insurance Corporation (CDIC) insure savings of up to $100,000, while credit unions are insured provincially and usually cover the full deposit, with no limits. Money that is deposited in a HISA account generates interest by allowing the bank to access those funds to loan to others. Interest rates offered by HISA accounts typically vary between rates as low 0.5% and to the 2% range at the upper end. There are usually no monthly service fees associated with savings accounts since they are intended to serve as places for people to park their money for stretches of time. However, it’s not unusual to see the number of withdrawals and transfers limited or to have a fee associated with transactions. (Read more for how CDIC protects you.)


How are high-interest savings accounts taxed?

Earnings from a HISA are taxable as income. That means any interest you earn from your savings must be declared and will be taxed at your normal rate. It is, however, possible to shelter your savings from taxes if you hold a HISA within either a TFSA or an RRSP.


What is the difference between a high-interest savings account and a regular savings account?

The main difference between a standard savings account and a HISA is the interest rate. As suggested by their name, HISAs pay a slightly higher rate than standard savings accounts, allowing savings to slowly grow. They may, however, be subject to withdrawal or transfer limits, transaction fees or minimum balance requirements. A standard savings account is a good place to keep surplus cash that you don’t need for everyday transactions (use a chequing or hybrid account for those needs). A HISA, on the other hand, is a better choice for holding savings that are geared toward a particular goal, such as paying for home renovations or university tuition. 


How to choose a high-interest savings account

Most financial institutions in Canada offer HISAs, and you will want to consider which is the best fit for your needs. First and foremost, you should consider the interest rate. Conventional wisdom states that you want to look for a rate of interest that outpaces the rate of inflation or you will wind up with less buying power than you started with. In recent years the rate of inflation has been about 2%. During recessions, however, we can expect both interest rates and inflation to decrease. 

You also want to carefully look at the HISA terms and conditions. Some may require you to keep a minimum balance, charge fees on transactions, limit withdrawals, or enforce lock-in periods. 

Look to take advantage of cash signing bonuses or higher promotional rates, but also keep in mind that the long-term interest rate is more important than a short-term introductory rate.


Savings account vs. chequing account

Chequing and savings accounts are two of the many products offered by financial institutions. While they share some similarities, there are a few differences. Generally speaking, chequing accounts are used for everyday banking transactions while savings accounts are designed to help you reach longer-term goals by offering interest on your deposits without monthly fees. As a third option, hybrid accounts are an increasingly popular choice for those seeking the perks and features of chequing and savings accounts in a single package. Let’s take a closer look.

What is a savings account?

There are different types of savings accounts, each with their own specific terms. But in general, these accounts are where you put money while working towards a financial goal. Savings accounts do not typically have monthly fees, and you are paid interest on your deposits. Depending on the type of savings account you have, you may be able to use the money in it to make everyday purchases but usually you will have to transfer the money into your chequing account first. You cannot write a cheque from a savings account.

What is a chequing account?

As the name suggests, you can write cheques against a chequing account, and you might receive your paycheque into this account as a direct deposit. While writing a physical cheque isn’t as popular as it once was, “chequing” accounts are still around. As they are used for everyday transactions, these accounts are accessible from ATMs, at tellers, online and apps. This type of account is where you store money you intend to spend on routine transactions, including Interac e-Transfer, bill payments, withdrawals, deposits, pre-authorized payments and point-of-purchase payments, like using your debit card at a store. 

The best of both worlds—the hybrid account

Hybrid bank accounts combine the interest of a savings account with the flexibility of a chequing account—all for low or no fees. Money in this kind of account earns interest but it can also be accessed for purchases, pay bills, buy money transfers, make Interac e-Transfer transactions and so on. For those who want to simplify how they bank, a hybrid account could be the solution. Note that not all banks offer hybrid accounts, so you may have to shop around.

What kind of account is my money in?

After reading the above options, you might be wondering what kind of account you have already. The easiest way to find out is to call or visit your bank. Speaking with a banking teller can clarify your current structure and give you the opportunity for help should you want to make a change or move your money. 

Other types of savings accounts

A standard HISA is a very safe and secure way to squirrel away some money and earn a small amount of interest in the meantime. For medium or long-term savings, Canadians should consider holding their HISA in one of two types of registered plans that will help mitigate the amount of tax you will owe on your interest earnings.

Tax-free savings account

TFSAs are registered with the federal government, like an RRSP. More than just a savings account, a TFSA allows you to invest up to $6,000 per year and not pay any taxes on the earnings. You are free to withdraw the money, tax-free, at any time. The savings plans available within a TSFA may have somewhat lower interest rates than some other HISAs, but could be a better choice after considering the tax savings. (You can also hold other kinds of investments inside a TFSA, such as stocks and ETFs.)

Registered retirement savings plan

An RRSP is a tax-deferred retirement savings plan, registered with the federal government, that allows Canadians to defer paying taxes on their income until after retirement.

Canadians can defer paying taxes on up to $27,230 this year and instead hold that money in a savings account (or other types of investments, including stocks, bonds and ETFs) within an RRSP where earnings will accrue tax-free as well. When you withdraw the money to use for living expenses in retirement, it’s typically taxed at a lower rate, assuming your income in retirement is lower than when you made the original contribution.

Why do the interest rates on a savings account go up and down?

The interest rates on savings accounts fluctuate, sometimes on very short notice. In 2020, for example, there were several rapid changes—mostly on a downward trend. In that case, it’s not hard to understand why. The COVID-19 pandemic threw the world’s economies into disarray, and this was reflected in interest rates. The rates offered by savings accounts are controlled by the prime rate, which is linked to the Bank of Canada’s policy rate.

In times of economic turmoil, the Bank of Canada might reduce its interest rate to stimulate the economy by making it more affordable for people to borrow money. This shift affects your interest rate. In general, the interest rates are high in a strong economy, and they are lower during downturns. Today’s prime rate is 2.45%.

Reductions in the Bank of Canada policy rate might negatively affect your savings account, but they do have benefits. You’ll get a very attractive interest rate when taking on or refinancing a mortgage, for example. The same goes for personal loans. If you’re looking for a good savings rate and can plan to set aside your savings for a certain term, you might consider moving it to a GIC. GICs offer guaranteed interest rates for a given term so needn’t worry about fluctuation.

The rates for GIC, like with many investments, go up and down with the economic environment. Right now the GIC rates are very low, despite the fact that the money is locked in. So, look at GIC rates when deciding what to do with your money. Would you want to tie up your money for the minimal payoff.

Is having a savings account really necessary?

Even when the economy is strong, the interest rates on savings accounts tend to be in the low single digits. If you compare this to real estate or stock portfolio returns, you might wonder why you should hold a savings account at all. The thing to understand is that these aren’t comparable products. They’re apples and oranges, each used for different specific reasons.

A savings account is an essential part of everyone’s personal finance portfolio. Why? They are a place to keep your money safe—and liquid!—while earning guaranteed returns. Although these returns tend to be modest, they can help your money grow steadily to combat against inflation. Having a savings account is important if you want a safe way to set aside money in case of emergencies or for an upcoming major purchase, like a car or a down payment on a house. Stocks do well in the long term, but short-terms fluctuations make them unsuitable places to store money for a purchase in the near future because you may well be forced to sell during a downturn. If you’re lucky enough to have real estate, you already know that it is anything but liquid. Savings accounts hit the sweet spot by providing interest, while your money is protected by CDIC or similar deposit insurance coverage, up to specified limits.


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What does the * mean?

If a link has an asterisk (*) at the end of it, that means it's an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. It's important to note that our editorial content will never be impacted by these links. We are committed to looking at all available products in the market, and where a product ranks in our article or whether or not it's included in the first place is never driven by compensation. For more details read our MoneySense Monetization policy.

Источник: https://www.moneysense.ca/save/best-high-interest-savings-accounts-canada/

 

Keep a couple of things to keep in mind when seeking the best savings account interest rates. One is that you’ll have to do the research to find the top savings account rates. Another is that you should expect to find higher interest rates with online accounts, as opposed to brick-and-mortar savings accounts. Finally, it’s not reasonable to expect to become rich from the returns on your savings account.

Research for the top rates

Research, research, research. Do your online research to find the top savings account interest rates. Accounts with the highest yields currently pay more than 1 percent APY, with some near the 1.5 percent mark. The typical savings account with a $10,000 balance paid just 0.25 percent APY towards the end of 2017, according to a national survey of banks conducted by Bankrate. Anything much higher than this figure is worth investigating. To get an idea of the impact of an interest rate on your money, use an online rate calculator to get an idea of how different rates would affect your account balance.

Compare, compare, compare

Generally, you’ll earn higher returns for your savings when you deposit funds with an online bank compared to a traditional brick-and-mortar bank. Online banks are able to offer higher returns than your local bank branch because of their low overhead costs.

Increase your initial savings amounts

Maximize your earnings by starting with higher amounts in your savings account. Some of the banks paying the highest yields require account holders to maintain a minimum balance of $5,000 to $10,000. Other banks with tiered rates reward customers willing to invest more cash. If you’re putting too much money in a savings account, $100,000 or more, most financial advisers will tell you to diversify your investments to earn higher returns.

Consider other banks

If your bank isn’t delivering high yields on your savings account, you might think about going elsewhere. This brings you back to researching for the top rates. The logistics of having multiple accounts in different places might make doing this not worth your while. To help you gauge the value of opening a new account, which means more statements and more passwords, you can calculate your potential earnings before opening up a savings account at a new bank.

Always check the fine print

To get the best savings account rate, read the fine print for details like minimum balances and high fees for overdrafts and ATM transactions. Sticking with a bank that has offered account holders strong interest rates over a long long period of time can help you avoid the trap of “teaser” rates. These alluring high rates are temporary. Those initial high yields may expire after only a few months.

Источник: https://www.chime.com/bank-fees/savings-account-fees/

Which savings accounts can beat inflation?

Inflation rose to 4.2% in October 2021, up from 3.1% the month before, according to the latest figures from the Office for National Statistics (ONS).

Below, we've listed the accounts paying the most interest on cash across instant-access, notice and fixed-rate deals at the time of publishing.

Regular savings accounts

The best regular savings accounts pay a higher interest rate than the current rate of inflation, but to access them you'll need to have a current account with the same provider.

In the past, these accounts have offered interest rates as high as 5% but these disappeared last year.

Bear in mind that unlike fixed-rate bonds or instant-access accounts, which allow you to deposit a lump sum, you'll be much more restricted on the amounts you can pay into a regular savings account: maximum monthly deposits are typically around £250.

What's more, the rates are sometimes only payable for a limited time - typically 12 months.

Current accounts

Despite a series of rate cuts on popular interest-paying current accounts, many still offer meaningful returns, albeit only on small balances. You'll also need to make sure you pay in the required minimum monthly amount to qualify for interest.

Nationwide's FlexDirect account currently pays 2% AER on balances up to £1,500 for the first 12 months, generating a maximum return of £30. The rate will drop to 0.25% AER after that. You're also required to pay in at least £1,000 a month.

 

What are the best savings deals in November 2021?

Instant-access savings accounts (unlimited withdrawals)

Excluding accounts with limited withdrawals or other restrictions, the best instant-access savings rate is 0.71% AER, offered by Investec Bank plc.

The next-best rate is 0.7% AER, offered by Cynergy Bank. This rate will reduce to 0.3% AER after the first 12 months.

One-year fixed-rate savings accounts 

If you're willing to tie up your savings for a year, the best rate currently available is 1.37% AER, offered by Zopa.

The next-best rate is 1.36% AER, offered by Investec.

Two-year fixed-rate savings accounts 

The best rate for a two-year account is 1.63% AER, from United Trust Bank.

The next-best rate is 1.61% AER, offered by SmartSave and Zopa.

Three-year fixed-rate savings accounts 

For a three-year term, the highest rate is 1.87% AER, offered by United Trust Bank.

The next-best rate is 1.83% AER, from SmartSave.

Four-year fixed-rate savings accounts

The best rate for a four-year account is currently 1.92% EPR/AER, offered by Gatehouse Bank and United Trust Bank.

The next-best rate 1.82% AER, offered by United Bank UK.

The account from Gatehouse Bank is a sharia-compliant product, and so offers an expected profit rate (EPR), as opposed to interest (AER).

Five-year fixed-rate savings accounts 

The best rate is 2.06% AER, from United Trust Bank.

The next-highest rate is 2.05% EPR/AER, offered by Gatehouse Bank and United Bank UK.

The account from Gatehouse Bank is a sharia-compliant product, and so offers an expected profit rate (EPR), as opposed to interest (AER).

Please note that minimum and maximum deposit amounts vary, even across products with the same rate, so make sure you consider the full details before you opt for a new account.

Which are the best and worst savings providers?

We know that customer service is an important factor for many people when choosing a savings account. But how do you find a bank or building society that combines great rates with top-notch customer service?

Which? is here to help. We've asked thousands of savers to rate their bank or building society, enabling us to create unique customer scores for all the major providers.

We've also analysed thousands of savings products and given each provider an overall product score, highlighting which companies offer consistently competitive rates. The full results from our 2021 analysis are as follows:

Best and worst savings providers

Which? Recommended Providers for savings, 2021-22

Each year, we name the very best savings providers as 'Which? Recommended Providers' (WRPs). To win this award, the bank or building society must:

  • achieve a customer score of 66% or above;
  • achieve an above-average product score;
  • be fully covered by the UK Financial Services Compensation Scheme (FSCS); and
  • offer products which are available nationally and are not tied to the purchase of another product with the same provider.

This year, our WRPs are:

Coventry Building Society

Coventry Building Society achieved a customer score of 66%, with customers giving it high ratings for its customer service, application process, regular communications, and transparency of charges and penalties. Its online banking service also proved popular.

Among the savings accounts on offer, Coventry Building Society's instant-access saver pays 0.5% AER, but only allows you to access your cash six times a year. Its unrestricted instant-access cash Isa and savings account both pay 0.3% AER.

Elsewhere, its three-year fixed-term cash Isa and savings account both pay 1% AER.

Marcus by Goldman Sachs

Marcus by Goldman Sachs received a 68% customer score. Savers gave it top marks for its application process, clarity of statement and online banking service. The provider's transparency of fees and charges was also rated highly.

Marcus currently offers an instant-access savings account and cash Isa that both pay a competitive variable rate of 0.6% AER for the first 12 months; after that time the rate will drop to 0.5% AER.

About Which?'s savings account research

Scores and star ratings are based on a survey of 4,479 UK savings account holders in September 2021.

Which? Customer Score

This is Which?'s rating for customer satisfaction, based on feedback from real customers. The score is calculated based on customers' overall satisfaction with the brand, and how likely they are to recommend it to others.

Product score

We analyse nine key elements of savings accounts, from account management and restrictions to how often interest is paid, in order to calculate a product rating score. 

Providers must also offer an account sitting within the top half of at least one category.

This ensures that the providers we endorse offer consistently good rates along with excellent customer service. 

How to find the best sustainable savings account

When you deposit money into a savings account, it doesn't just sit there until you're ready to withdraw it again.

Instead, it's put to use by your bank or building society, which will lend those deposits to fund things like mortgage loans, or use them to make investments. These could include fossil fuels, arms, or other industries you may disagree with.

If you're curious about what your money is being used for, or looking for a provider that matches your values, try the following:

  • Which? ratings: In July 2021 we rated 18 leading providers of savings accounts on their sustainable credentials. Find their scores here.
  • Provider websites: Look for the 'about us' page, which should discuss environmental issues, with the best listing what they currently invest in.
  • Environmental reports: Some providers publish dedicated reports about their emissions and target for reducing them.
  • Lending criteria: Sometimes called an ethical policy, this should show which industries the bank will and won't lend money to.
  • Annual reports: These often list emissions and other environmental impacts and plans to reduce these impacts.

If you're saving for more than five years, you could earn higher returns through investing. This also allows you to exercise more control over what your money is being used for.

Rates correct at time of publishing. Last updated 2 December 2021.

Источник: https://www.which.co.uk/money/savings-and-isas/savings-accounts/how-to-find-the-best-savings-account-ad9zh3c1qkqg

Compare Savings Accounts Interest Rates

Frequently Asked Questions About Savings Accounts & Interest Rates

Rates for high interest savings accounts may vary by bank and account type. Whether in a savings account or money market account, deposits that earn a higher savings rate will grow at a faster pace. Money market account holders are subject to a six-withdrawal limit per month. Deposits are covered under FDIC insurance up to $250,000 per depositor, per insured bank, for each ownership class.

1 Why do savings account rates vary so much?

The type of bank, type of interest-bearing account and deposit balance can play a role in savings rates. Online savings accounts and money market accounts usually offer higher savings rates because online banks have lower expenses from not having to maintain brick-and-mortar locations. Savings rates can also differ by account balance -- more deposits may qualify for a higher savings rate.

2 What is the difference between a savings account and a money market account?

Like a savings account, a money market account holds deposits that earn interest. However, money market accounts usually require higher balances to avoid monthly fees, if any. Because of these deposit requirements, money market accounts tend to carry higher savings rates compared to savings accounts.

3 What does annual percentage yield (APY) mean?

Savings rates are displayed in terms of APY to indicate the effective annual-interest return when taking the effect of compounding interest into account (assuming that the deposit balance does not change. However, fees may lower the effective savings rate in savings accounts and money market accounts.

4 How do I choose an account with the best savings interest rates?

Begin your search at your current bank. Since you already bank with them, you will be familiar with their customer service and policies. Ask whether or not they offer any other savings accounts that have interest rates better suited for your needs.

You should also compare rates for a high-yield savings account using our savings calculator. Some products may beat your current bank’s rates, but do not assume the highest rate is the best option. You have to make sure you choose the bank that will best fit your banking habits. You may be comfortable with your own bank and not want to start a new relationship, even if you do find a slightly higher interest rate.

5 Why should I open a savings account?

You may want to start saving for a new TV in a few months, a new car in a few years or to send your kids to college further down the road. All of them require some sort of savings plan.

An emergency savings account is another vital part of your overall financial health. Some experts advise setting aside $1,000. Others recommend holding the equivalent of three months salary in savings. Some insist that up to one year’s salary is crucial -- particularly to protect against unemployment.

Источник: https://www.mybanktracker.com

Online Savings Account

Annual percentage yield

X.XX%

Annual Percentage Yield (APY). Advertised Online Savings Account APY is accurate as of XX/XX/XXXX. Applies to personal accounts only. APY may change before or after the account is opened. No minimum deposit to open.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

X.XX%

Competitor APY comparison information obtained from Curinos, as of XX/XX/XXXX, using savings account APYs. Competitor APYs are subject to change at any time. The non-Discover Bank service marks for Chase, Citibank, Bank of America, Wells Fargo, PNC Bank, U.S. Bank, Capital One, Ally Bank, Marcus and Synchrony Bank, are owned by each respective entity. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed.

Источник: https://www.discover.com/online-banking/savings-account/

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The best savings accounts and highest interest rates (UK) - June 21

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