A standard savings account at a major Canadian bank often pays somewhere between 0.01% and 0.5% annual interest, barely enough to notice. High-Interest Savings Accounts (HISAs) at online banks and challenger institutions pay significantly more, often 3–5% or higher depending on market conditions. For newcomers building an emergency fund or saving for a first purchase, the difference is real.
What Is a HISA?
A High-Interest Savings Account is a standard deposit account that pays a higher interest rate than traditional savings accounts. In Canada, they're fully insured by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per depositor per institution, meaning your money is protected even if the bank fails.
Top HISA Options in Canada in 2026
Rates fluctuate with the Bank of Canada's overnight rate, so always check the current rate before opening an account. That said, here are the consistently strong performers:
EQ Bank: One of Canada's most popular online banks. Offers competitive everyday interest on their Savings Plus Account with no monthly fees and no minimum balance. Transfers to and from external accounts within 1–3 business days.
Simplii Financial (CIBC's online brand): No monthly fees, competitive rates, and easy to use. Backed by CIBC, which adds a layer of comfort for newcomers who prefer a name they recognize.
Tangerine (Scotiabank's online brand): Regular promotional rates for new deposits. Good app experience and no fees. Part of Scotiabank gives it strong CDIC coverage.
Neo Financial: Newer Canadian fintech with competitive rates and a slick app. CDIC insured.
Wealthsimple Cash: Offers HISA-level rates within its Cash account, with easy integration if you already use Wealthsimple for taxes or investing.
What to Look For
When comparing HISAs, don't just look at the headline rate. Check:
- Is it a promotional rate? Many banks offer high intro rates for 3–6 months that revert to lower rates afterward.
- Monthly fees: The best HISAs have zero monthly fees.
- Transfer speed: How long does it take to move money to your main bank account?
- CDIC membership: Always confirm the institution is CDIC-insured.
TFSA vs. HISA: What's the Difference?
A TFSA (Tax-Free Savings Account) is an account type. You can hold a HISA inside a TFSA and earn interest tax-free. If you're building an emergency fund as a newcomer, consider putting it inside a TFSA so the interest you earn isn't added to your taxable income. Your TFSA contribution room accumulates from when you become a Canadian resident.
Ottawa Newcomer Tip
Big banks like TD, RBC, and Scotiabank offer newcomer banking packages that waive monthly fees for one to two years. These are useful for day-to-day chequing, but don't keep all your savings there. Open a HISA at an online bank alongside your main bank account for savings that grow meaningfully.
A Simple Strategy
Use your main bank account for day-to-day spending. Move anything you're saving (emergency fund, house down payment, vacation fund) to a HISA. Even at 3.5% annual interest, $5,000 in a HISA earns $175/year, versus $5 in a big-bank savings account. That's not transformative money, but it's free money for doing nothing different.
