TLDR
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A High Interest Savings Account (HISA) is a safe, flexible way to grow your money while keeping it easily accessible
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Your money will typically earn a higher rate of interest than it would in a standard savings account
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Money in a High Interest Savings Account is protected by CDIC insurance and isn’t exposed to market risks
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HISAs are ideal for short-term goals, like travel, an emergency fund or saving for a down payment
An introduction to High Interest Savings Accounts
Do you have some savings you’d like to set aside – for a future goal or just a rainy day? Want easy access to your money in case you need it quickly, without having to jump through hoops to get it? A High Interest Savings Account (HISA) might be just what you’re looking for.
HISAs strike a balance between earning potential and accessibility. They offer higher interest than regular savings accounts, while still letting you withdraw or transfer your funds whenever you want. Whether you’re saving for an upcoming trip, a new home or just peace of mind, a HISA can help you build those savings without locking them away.
What are High Interest Savings Accounts?
The name says it all: a HISA is a savings account that offers a higher rate of interest than traditional savings accounts. You get the same convenience and flexibility – to make deposits, transfers and withdrawals – but with a better return on your balance.
Unlike investment accounts, HISAs don’t expose your money to market ups and downs. Instead, your funds earn a guaranteed rate of interest, so your savings quietly work for you in the background.
Benefits of High Interest Savings Accounts
There are several advantages to High Interest Savings Accounts:
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Higher interest rates: You earn higher interest on your savings. The exact rate will vary across financial institutions, but it will typically be higher than what you would find with a regular savings account.
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Easy access to your money: With some savings and investment accounts, you have to lock in your money for a certain period of time in order to earn good interest. A HISA, however, lets you move your money freely. You can withdraw or transfer funds whenever you like without penalties or waiting periods.
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Safety and security: Like with a standard savings account, your money is eligible to be protected by Canada Deposit Insurance Corporation (CDIC) – up to $100,000. And since your returns aren’t tied to market performance, you’ll always earn steady, predictable interest.
Key features of High Interest Savings Accounts
Not all HISAs are created equal. Before opening one, it helps to understand a few key features that can affect how much you earn and how easily you can manage your money.
Interest rates and terms
The interest rate is the star of the show. HISAs typically offer higher rates than regular savings accounts, though the rate can fluctuate with the market. Some financial institutions offer tiered interest rates, meaning you’ll earn a higher rate as your balance grows.
Fees and charges
Some HISAs may charge monthly fees for holding the account. Look for a High Interest Savings Account with no monthly fee or minimum balance requirement, like the RBC High Interest eSavings Account. While fees for ATM withdrawals are fairly common (since HISAs are designed for saving, not spending), self-serve transfers between your accounts are typically free.
Promotional offers
Some banks offer special introductory rates to attract new savers. These limited-time promotions can be two to four percentage points higher than the regular rate.
For instance, a bank with a 1.5% base rate might offer 4.5% for the first few months on new deposits. Just remember that once the promotion ends, the rate reverts to the regular one.
Automatic transfers
HISAs make it easy to save, with most offering the ability to automate your deposits. You can set up regular, automatic transfers from your chequing account, so your balance grows without you having to think about it.
Common misconceptions about High Interest Savings Accounts
There are a few myths and misunderstandings about HISAs. Let’s clear them up.
“HISAs are only for large balances”
Think you don’t have enough money to save in a High Interest Savings Account? Think again! You can start saving in a HISA with any amount. And when you choose a HISA with no minimum balance requirement, you earn interest on whatever money you have in the account – no matter how much or how little it is. Saving even a small amount consistently can build momentum and make a real difference over time.
“HISAs are complicated”
HISAs are in fact very straightforward accounts. You deposit your money, it earns interest and that interest is paid into your account monthly. Simple as that! You can move money in and out easily and there’s no paperwork or penalty when you withdraw.
“They don’t earn enough”
While HISAs don’t match the potential returns of investments like stocks or ETFs, they do offer guaranteed growth, which can support short-term goals. Keep in mind, during periods of higher interest rates, the earnings can be notably strong. And unlike market investments, your principal is never at risk.
“I can only save in Canadian dollars”
If you have savings in U.S. dollars, you can open a U.S. High Interest eSavings Account – and get your U.S. cash working harder for you.
Factors to consider when choosing a high interest savings account
Once you’ve decided a HISA fits your needs, the next step is choosing the right one. Here are a few factors to think about and compare before you open an account:
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Costs: Look for accounts with no monthly fees and free self-serve transfers between accounts.
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Access: It’s convenient to have your HISA and chequing account at the same institution, so you can move money instantly.
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Minimum balance requirements: If you’re just starting to save, you’ll want an account that pays the same interest regardless of your balance size.
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Fluctuating interest rates: Rates can change as the market shifts – you might earn more in higher-rate environments and less when rates drop.
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Growth potential: HISAs are best suited for short-term financial goals where safety and liquidity matter more than long-term goals. If you’re saving for something far in the future, consider combining your HISA with investments like mutual funds or ETFs for higher growth potential.
How to open a High Interest Savings Account
Opening a HISA is quick and easy. Most people can do it entirely online in less than 10 minutes.
Here’s what the process looks like:
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Choose your provider: Decide whether you want to stay with your current bank or open a HISA with a new one. Online-only banks sometimes offer higher rates, while traditional banks may provide added convenience.
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Meet basic requirements: You’ll need to be a Canadian resident, the age of majority in your province or territory, and have a valid Social Insurance Number.
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Apply and link an account. Complete a short online application, then link your chequing account so you can move funds in and out easily.
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Deposit and start saving! Transfer your initial deposit and watch your money begin earning interest right away.
That’s it! You’re ready to start growing your savings.
High Interest Savings Accounts versus other options
There are many ways to save in Canada, with options to match your goals, appetite for risk and flexibility requirements. Each has its own strengths depending on your timeline and comfort with risk.
Here’s how a HISA stacks up:
| Account type | Potential return | Accessibility | Contribution limit | Risk | Best for |
| High Interest Savings Account | Higher than a regular savings account | Instant access – withdraw anytime | No limit | None | Short-term goals, emergency funds |
| Regular savings account | Low | Instant access – withdraw anytime | No limit | None | Everyday savings |
| Tax-Free Savings Account (TFSA) | Depends on investments held | Generally high – withdrawal rules depend on the nature of investment | Annual limit set by CRA ($7,000 in 2026; cumulative if unused) | Varies (depends on what you invest in) | Both short- and long-term savings |
| Non-registered investments (stocks, ETFs, GICs) | Depends on investments held | Medium – withdrawal rules depend on the nature of investment | No limit | Varies (depends on what you invest in) | Long-term growth |
| Registered Retirement Savings Plan (RRSP) | Depends on investments held | Low (withdrawal restrictions) | 18% of previous year’s earned income (up to CRA maximum) | Varies (depends on what you invest in) | Retirement savings |
Why you should consider a High Interest Savings Account
If you want your money to grow safely while staying within reach, a HISA offers an excellent balance. It’s a low-stress, low-risk way to build your savings and see consistent returns.
Maybe you’re saving for something specific – like a wedding, a new car or a home renovation – or maybe you want to be ready for whatever life brings you. Either way, a High Interest Savings Account can help you get there faster, without sacrificing flexibility or peace of mind.
Final thoughts on High Interest Savings Accounts
Saving doesn’t have to be complicated. A High Interest Savings Account is a straightforward, reliable way to grow your money without taking on risk or locking it away.
And, you don’t have to be a seasoned investor to start earning interest. You just have to take the first step. Open an account, set up an automatic transfer and watch your savings grow over time.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
