The Best High-Interest Savings Accounts in Canada (2025 Edition)
If you're sitting on extra cash in your chequing account or need a safe place to stash your emergency fund, a High-Interest Savings Account (HISA) is one of the smartest places to start.
HISAs offer better returns than traditional savings accounts without locking your money away, making them ideal for Canadians looking to preserve capital and earn passive income. In this 2025 guide, Ego Fusion compares the top high-interest savings accounts in Canada, with a focus on rates, fees, flexibility, and digital accessibility.
A High-Interest Savings Account is a deposit account that offers a significantly higher interest rate than regular savings accounts. These are typically offered by online banks or digital subsidiaries of traditional banks, which pass on cost savings from operating without physical branches.
📌 Key Features:
- • No lock-in period
- • Government deposit insurance (CDIC or provincially insured)
- • No or low monthly fees
- • Easy access via online and mobile banking
- • Ideal for emergency funds, vacation savings, short-term goals
| Bank / Institution | Interest Rate | Monthly Fees | Key Features |
|---|---|---|---|
| EQ Bank | 4.00% | $0 | Unlimited transfers, CDIC insured |
| Motive Financial | 4.10% | $0 | Free Interac e-Transfers |
| Tangerine Bank (Promo) | 5.00% (5 mo) | $0 | No promo code needed, auto reverts to 1% |
| Simplii Financial | 4.75% (Promo) | $0 | New clients only, 4-month promo |
| Alterna Bank eHISA | 3.60% | $0 | Unlimited deposits and withdrawals |
Note: Rates are subject to change. Always check the bank's website for the most current terms.
All the accounts listed above are insured by the Canada Deposit Insurance Corporation (CDIC) or a provincial equivalent (like FSRA for Ontario credit unions). CDIC protects eligible deposits up to $100,000 per insured category, per financial institution.
According to the Bank of Canada, inflation as of June 2025 has cooled to 2.1% year-over-year after multiple interest rate hikes in 2023–2024. That means any savings account yielding more than 2.1% is preserving your purchasing power.
Source: Bank of Canada Inflation Report – June 2025
| Use Case | Recommended Bank | Reason |
|---|---|---|
| Emergency fund | EQ Bank | Instant access, no fees, consistent rate |
| Saving for a vacation | Alterna Bank | Simple, no promotional rate drop |
| Short-term investment parking | Motive Financial | High rate with unlimited withdrawals |
| First-time savers | Tangerine/Simplii | Promotional boost, user-friendly mobile app |
| Budgeting with multiple goals | KOHO Save (bonus) | Prepaid card + savings vault |
Most digital banks now offer robust apps with:
- • Push notifications for deposits and interest
- • In-app transfers to linked external accounts
- • Auto-saving and round-up features
Top-rated apps (as of July 2025) include:
- • EQ Bank Mobile App (4.7 stars on Google Play)
- • Motive Financial App (4.4 stars)
- • Tangerine Mobile Banking (4.6 stars)
| Feature | HISA | GIC (1 Year) | TFSA with ETF |
|---|---|---|---|
| Liquidity | High | Low (locked-in) | High, but riskier |
| Risk | Low (insured) | Very low | Moderate |
| Returns (2025) | 3.6% – 5.0% | ~4.8% – 5.1% | 6–9% (market-based) |
| Tax Implications | Taxable interest | Taxable interest | Tax-free growth |
📚 CRA Guide to Tax on Interest Income
Ego Fusion Insight:
Use a HISA for savings you'll need in under 12 months. For medium-term goals, consider a TFSA invested in low-cost ETFs. For guaranteed growth, stagger GICs with a laddering strategy.
Avoid promotional traps:
Once the promo ends, your rate might fall significantly. Watch for auto-renewals or downgrades.
Link external accounts:
Automate transfers from your chequing account for regular saving.
Track interest monthly:
Most HISAs compound interest daily but pay monthly – review statements.
Watch tax time:
Interest is fully taxable as income, unlike capital gains or dividends.
A high-interest savings account is not an investment – but it's the right choice for stability, liquidity, and preserving value in uncertain times. Whether you're building an emergency fund or saving for short-term goals, parking your cash in a HISA ensures you're not losing value to inflation.
For most Canadians, pairing a HISA with a TFSA or FHSA offers the best mix of accessibility and long-term tax-advantaged growth.
Still unsure where to save?
Contact an Ego Fusion advisor today to compare accounts based on your savings goals and tax profile.
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