Best Savings Accounts In Canada For February 2025

• Scotiabank MomentumPLUS Savings Account – Up to 5.10% in the first three months for new account holders.
• Tangerine Savings Account – 4.50% in the first five months for new account holders.
• Simplii High Interest Savings Account – 3.9% in the first five months for new account holders. (Must apply by March 31, 2025. Limits apply.)
• CIBC eAdvantage Savings Account – 5.00% in the first four months for new account holders.
• BMO Savings Amplifier Account – 5.00% in the first 120 days after opening chequing and a Savings Amplifier Account and completing the qualifying steps.

*Rates current as of January 31, 2025.

We’ve compared 120 savings accounts at 35 nationally available banks and credit unions to find some of the best options available. See below to learn about the pros and cons, and why we picked each account.

To create this list, Forbes Advisor analyzed 123 savings accounts at 39 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 17 data points within the categories of fees, access, customer experience, digital experience, annual percentage yield, plus the minimums and balances needed to avoid monthly fees.

The following is the weighting assigned to each category:

• APY: 30%
• Fees: 40%
• Customer experience: 10%
• Digital experience: 10%
• Deposit Minimums: 5%
• Balance to avoid monthly fee: 5%

Specific characteristics taken into consideration within each category included monthly fee, ability to waive the monthly fee, overdraft fee, NSF fee, other fees, ATM network, branch access, Better Business Bureau rating, Trustpilot rating, live chat availability, mobile app ratings, online bill pay availability, online banking access, minimum deposit requirements and minimum balance requirements.

Savings accounts offering no or very low fees scored the highest, as did those offering low minimum requirements and high annual percentage yield, customer service and digital experience scores. To appear on this list, the savings account must be nationally available.

Our research is based on information from the following financial institutions: RBC, TD, BMO, National Bank, CIBC, Scotiabank, UNI Financial, Canadian Western Bank, Coast Capital Savings, Digital Commerce Bank, EQ Bank, First Nations Bank of Canada, Laurentian Bank, Manulife Bank, Motus Bank, Peoples Bank of Canada, Simplii Financial, Tangerine Bank, VanCity, VersaBank, HSBC, ICICI Bank Canada, SBI Canada Bank, CTBC Bank, Bank of China (Canada), KEB Hana Bank Canada, Shinhan Bank Canada, Meridian Credit Union, Servus Credit Union, Envision Financial, Steinbach Credit Union, Affinity Credit Union, Prospera Credit Union, Conexus Credit Union, ConnectFirst Credit Union, Access Credit Union, Assiniboine Credit Union.

A savings account is a bank account designed to save money. In a savings account, you’re not making regular transactions that sees money come in and go out. Instead, money comes in and is meant to stay in the account as a reserve fund or is only transferred out of the account when you reach your savings goal. To encourage you to save, many savings accounts charge you for transfers or debit purchases made from the account and most savings accounts come with a small annual percentage yield (APY) of interest so that your savings will grow a little bit every year just by keeping your money in the account.

Types of Savings Accounts

Within the umbrella of savings accounts, you’ll encounter the following different types:

Basic savings account. This savings account is very similar to a chequing account, but it’s designed to store your money over the longer term, rather than transact your money to pay bills and make purchases. It usually encourages you to save by offering a small amount of interest. Some basic savings accounts also charge a fee if you don’t maintain a certain balance, but this is not always the case. It’s also often possible to saving money in U.S. dollars by opening a U.S. dollar savings account.

Youth savings account. This type of savings account is often used to teach children about saving. It can be opened by youth under the age of 18 and often has no restrictions ascribed to it, like a limited number of transactions or the need to maintain a certain balance. There are also no monthly fees and the only restriction usually is that you have to be a Canadian resident.

High-Yield savings account. This is a savings account that generally has no minimum deposit and offers an APY between 1.05% and 2.00%, with higher rates offered by accounts from branchless or online banks and credit unions. These accounts are exactly the same as basic savings accounts, but with higher interest, minimum balance requirements and withdrawal limitations. High-Yield savings accounts are also available in U.S. dollars.

Registered savings account. These are savings accounts that are registered with the CRA for a tax benefit that is the major incentive for opening them in the first place. Registered accounts usually have an annual and lifetime contribution limit and the investments you can have in them are not limited to cash. Instead they can also include stocks, GICs, mutual funds and savings bonds.

Registered Retirement Savings Plan (RRSP). An RRSP is a type of registered savings account established by the federal government to help Canadians save for their retirement. It’s marked by the fact that tax on your contributions is deferred until you retire when your income is likely to be a lot lower and therefore, you will pay less tax on any contributions you made when you withdraw them to fund your retirement itself. Add to that, RRSPs allow you to withdraw a limited amount of funds from them to finance a home or training and education through the Homebuyers Plan and the Lifelong Learning Plan, respectively.

Registered Education Savings Plan (RESP). An RESP is a type of registered savings account designed by the federal government to help parents, grandparents and guardians save money for the post-secondary education of the children in their care. The federal government also provides the Canada Education Savings Grant (CESG), which matches 20% of any RESP contribution to a maximum of $500 per child per year. While not providing an immediate tax break like an RRSP, capital gains in the account are not taxed. The funds inside an RESP can be used to fund tuition, books, housing and other living expenses at an approved post-secondary institution and are taxed in the hands of the beneficiary once they are withdrawn.

Registered Disability Savings Plan (RDSP). An RDSP is a type of registered savings account designed by the federal government to support a Canadian with a disability. Like the RESP, the government matches contributions to an RDSP to a maximum of $3,500 per year. but if you withdraw any funds ten years after you receive a matching grant, that last grant you received must be paid back. Payments start automatically withdrawing from the RDSP without penalty when the beneficiary turns 60 and are received annually for the rest of their life until the account reaches a $0 balance.

Tax-Free Savings Account (TFSA). A TFSA is a registered account designed by the federal government for any savings goal. Those savings are amassed tax-free whether they be through contributions or interest growth up to a limit of $7,000 per year (for 2024) and $95,000 lifetime (as of 2024) if you were over 18 by 2009 when the fund began. Unlike other registered accounts, withdrawals can be made at anytime without penalty and you don’t have to pay tax on the money you take out.

Savings accounts work similar to chequing accounts but they allow interest to accumulate on the money you put in. Therefore, the longer you keep your money in a savings account, the more it grows. Often, to keep storing your money in a savings account for the long-term, you must pay a penalty for withdrawals or transfers from it. You may also be required to maintain a minimum balance to enjoy the interest rate the savings account accrues. A savings account is a safe place to put your money because not only are Canadian banks some of the most stable in the world, but your deposits are also insured by the Canadian Deposit Insurance Corporation (CDIC) up to $100,000 if the bank ever becomes insolvent.

When comparing savings accounts across banks and picking the one that’s right for you, you should compare the best savings accounts on the basis of the following attributes:

Interest Rate

The number one thing to look for when it comes to a savings account is an interest rate. The higher the interest rate, the more your money grows just by sitting there, so look for a high annual percentage yield to ensure you will grow your money faster.

Minimum Balance

Make sure your savings account either doesn’t require, or has a low, minimum balance. This way you don’t have to worry about keeping a certain amount of money in your account just to earn interest. Look for savings accounts that allow you to earn interest regardless.

Fees

You want to pick a savings account that has either no fees or low fees. This way, less of your money goes towards paying penalties for making transfers or being over a certain number of withdrawals and more of it stays safe in your account to accumulate interest. The lower the fees, the better it is for you.

Convenience

As much as the best savings accounts allow you to put some distance between your money and your everyday spending, they also allow you to be able to access your money whenever you need it, so pick a savings account that has that kind of convenience. Look for ones at the same bank where you have your chequing account for easy transfer of funds back and forth and avoid paying wire transfers fees or going over your Interac e-Transfer limit just to move money between accounts at different banks.

Deposit Insurance

The majority of bank accounts in Canada are insured by the Canadian Deposit Insurance Corporation (CDIC) to $100,000, so your money is protected if the bank where it is declares bankruptcy. Make sure the savings account you choose is also covered by the CDIC.

You can quickly apply online for most savings accounts by following these six steps:

1. Research the Bank. It’s important to select the bank where you open a savings account carefully. You’ll want to consider the interest rate and APY that you can get on your balance because the higher the rate, the more your balance grows without you having to deposit more money. After that, you’ll want to consider how much you will have to pay to keep the account open and the various fees you will be charged,  especially monthly and transaction fees. Some accounts require a minimum balance to waive the monthly fee, so you’ll also want to factor in whether you can consistently meet the minimum balance. After that, you’ll want to consider customer service and whether you prefer the personal touch from a local branch or the convenience and control of an online bank account.
2. Find the account you want to open. Once you’ve decided on your bank and the savings account you want to open. Make sure you read all the legal fine print before signing up. It may be tedious, but here’s where you’ll get a sense of the actual fees you are being charged and the limitations of the features advertised on the account.
3. Look for a link inviting you to sign up or speak to a bank representative. Whether through the bank’s website or mobile app, the easiest way to open a savings account is to click the link that says “Open an account.” The bank will then get you started with an application. If you want to meet in person, just tell the teller you want to open an account, and a bank representative will meet with you and provide the necessary paperwork.
4. Fill out the application. On an application for a savings account, you’ll be asked to provide personal details such as your name, address, email address, phone number, date of birth and social insurance number. You will also need to provide a government-issued ID and be the age of majority in the province or territory where you live. In some cases, you’ll also be a resident of the province where that bank is located, as not all credit unions or regional banks accept members or clients outside of the province where they are based.
5. Wait for the account to be approved.  While the standard approval for a bank account is usually instantaneous that is not always the case. In-person, you can open an account the same day you walk into your local branch, but online, it may take two to three business days as the bank verifies your identity or calls you to ask additional questions. If you haven’t heard whether you’ve been approved or not after this two-to-three-day window, feel free to follow up.
6. Fund your account using a linked bank account or other methods. Once approved, you can fund your account in several ways depending on how your chosen account operates. If it comes with a debit card, you can deposit directly from your bank’s ATM or the teller. You can also fund the account by transferring funds from another account or sending yourself an Interac e-Transfer from another account.

Once again, you’ll need to provide the following information for not just yourself, but also any joint owners of the account:

• Your name
• Address
• Email address
• Phone number
• Date of birth
• Social Insurance Number (SIN)
• Government-issued photo ID

It’s best to use a savings account any time. You don’t necessarily have to have a specific savings goal in mind. Of course, what you’re saving for may affect the type of savings account you choose whether it’s a long-term goal; like saving for your retirement or a short-term goal like saving for a vacation. However, it’s best to have some savings set aside for any circumstance, just in case you lose your job or have to pay for an unexpected expense with a larger than anticipated sum of money that it would take time to accumulate. This is why you should use a savings account anytime because it’s never too late to start growing your money.

Your basic savings account is taxable in Canada. The bank will send you a T5 letting you know how much interest you’ve earned on your savings and you’ll have to submit that with your taxes because you’ll need to pay tax on the interest you’ve earned. That being said, not every savings account is taxable in Canada. Interest generated by an RRSP is tax-deferred, which means earnings on the account aren’t taxable until you withdraw it upon retirement, which hopefully means you’ll be part of a lower tax bracket anyway, so you’ll pay less tax when you do withdraw the money. In addition, interest earned on an RESP isn’t taxable until it’s in the hands of the beneficiary who will likely not pay taxes on it anyway because they will be a student by the time they are using the proceeds. Contributions to an RDSP aren’t counted as income when they are withdrawn, so they are not taxable either. Finally, a Tax-Free Savings Account is called that because it’s not taxable. Any money withdrawn from the account and any interest earned is not taxable up to the annual contribution limit of $7,000 (for 2024) and the lifetime contribution limit of $95,000 if you opened it when the account began in 2009.

A lot of these non-taxable accounts are the alternatives to your basic savings account, but there are others too. Let’s review your options:

Chequing Account

The best chequing accounts allow you to receive your paycheques, pay your bills and be the source of funds for all of your purchases. Only one or two available chequing accounts in Canada actually generate interest, so they aren’t really for saving—they’re for everything else.

RRSPs

Registered Retirement Savings Plans are designed by the government to help you save for retirement. Your contributions are tax-deferred, so you don’t have to pay tax on them until you withdraw them when hopefully you are a retiree and are in a much lower tax bracket anyway. You don’t just have to contribute straight up cash to an RRSP. You can also contribute to an investment vehicle like stocks, savings bonds, mutual funds and GICs that is within your RRSP.

TFSAs

Tax-Free Savings Accounts allow you to save money without having to pay taxes on the interest earned. There are no penalties for withdrawals and the only limit is that contributions can only be up to $7,000 each year (as of 2024), up from $6,500 in 2023.

High-Interest Savings Accounts (HISAs)

High-Interest savings accounts are savings accounts offering interest between 1.0% and 1.5% APY at the big five banks and up to 2.0% APY at some online banks or credit unions. They simply offer higher annual interest on the savings in the account than a basic savings account that offers no or low interest. Sometimes you must maintain a minimum balance to receive the high-interest rate and sometimes you have to pay a fee for making a withdrawal as a disincentive for doing that and instead just storing your money and collecting interest.

Term Deposits and Non-Redeemable GICs

Term deposits and non-redeemable GICs cannot be accessed until the date the account matures (the date of maturity). You basically agree to deposit a set amount of money for a fixed length of time while you collect interest and your deposit is insured by the CDIC. The timeline on a term deposit can be anywhere from 30 days to five years, but GICs generally have a longer timeline of one to five years. This longer time horizon allows GICs to offer higher interest rates than term deposits. In general, GICs and term deposits offer higher interest rates even than high-interest savings accounts. People choose GICs and term deposits because they are stable and have much less risk than more traditional investment vehicles like stocks or mutual funds.

Other Investment Options

You can of course invest your money in stocks, savings bonds, mutual funds, Real Estate Income Trusts (REITs) and more. Each of these different investment vehicles comes with its own level of risk depending on what you’re investing in, your own risk tolerence and time horizon for your own personal investments.