High-Interest Savings Accounts in Canada That Offer 2% Interest or Higher

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Looking to earn 2% or more on your savings accounts? Then read on to find out the 13 (yes, 13!) different banks that offer the top high-interest savings accounts in Canada.

After writing my post on the best no-fee banks in Canada, I thought I’d do a companion post on the best high-interest savings accounts in Canada that offer 2% interest or higher. The reason why I chose 2% as the benchmark is that the inflation rate as of June 2019 was 2%. If we aren’t keeping pace or beating inflation, we’re effectively losing money on our money. Therefore, we should all aim to earn at least 2% interest on our savings.

In my research on different savings accounts in Canada, I was actually surprised to find that there are 13 different banks that offer 2% interest or higher. I thought maybe there’d be 4 or 5, not 13! Finally, some choice!

As you may know, my main bank is Tangerine. Although they are a great no-fee bank, Tangerine didn’t make the cut for best high-interest savings accounts in Canada since they only offer 1.15% interest! Still, I do have some Tangerine savings accounts for my super short-term goals.

For my other savings goals, like my Emergency Fund, I use EQ Bank. I’ve been banking with them for years, I love their platform, and when I first signed up with them they were the only bank that offered the highest interest available at 2.30%.

Well, they no longer rank as the bank that offers the highest interest, so scroll down below to see who now takes that title! Here are the 13 banks with high-interest savings accounts in Canada that offer 2% or more, in order of lowest to highest.

1. People’s Group

Peoples Group logo

People’s Group started out as a boutique financial services company in 1985 in Vancouver. Back then, they specialized in mortgages, but now they offer a variety of financial products, including their e-Savings Account.

For your protection, People’s Group is CDIC insured so your deposits are 100% guaranteed. Moreover, you can earn 2% interest with their e-Savings account, way higher than any of the big banks. 

Details

  • No monthly fees
  • No minimum deposit
  • Easily transfer funds between your Peoples Trust accounts, or between your linked accounts at other financial institutions

Deposit protection: Insured by CDIC

Interest rate: 2.00%

2. Wealthsimple

Wealthsimple LogoYes, Wealthsimple isn’t a bank, they are a robo-advisor. Still, that didn’t stop them from launching their Wealthsimple Save account. However, because they aren’t a bank, they have a fairly unique set up.

Basically, if you open a Wealthsimple Save account, your deposits won’t actually be held with Wealthsimple. Just like your investments with Wealthsimple, your funds are held with Canadian ShareOwner Investments. But, with your savings account deposits, ShareOwner actually holds your funds in their business accounts at partner banks. In other words, you start with Wealthsimple, but your funds are actually deposited at other banks. It’s a weird set up, but ShareOwner is insured, so it’s all kosher (read this article for more info about this unique set up). Plus, you get to earn 2% on all your deposits.

Details

  • No monthly fees
  • No low balance fees
  • Unlimited free transactions
  • No minimum deposit
  • If you hold over $100,000 in funds, you are eligible for Wealthsimple Black status
  • If you have over $500,000 in funds, you are eligible for Wealthsimple Generation status

Deposit protection: Insured by CDIC via partner banks

Interest rate: 2.00%

3. Hubert Financial

Hubert Financial logoNever heard of Hubert Financial? Me neither! They are an online bank that launched in 2010, and are a division of Sunova Credit Union. Sunova is a credit union based in Manitoba that was established 60 years ago with 13 locations throughout the province.

Although Hubert Financial is not CDIC insured, your deposits are guaranteed by the Deposit Guarantee Corporation of Manitoba. Also, you don’t have to live in Manitoba to open an account with them, which is great because they offer 2.25% on their savings accounts.

Details

  • No monthly fees
  • No minimum deposit

Deposit protection: Insured by DGCM

Interest rate: 2.25%

4. Motusbank

MotusbankI mentioned Motusbank in my post about the top 5 no-fee banks in Canada, and fortunately, they also offer some of the highest interest in their savings accounts!

As a reminder, Motusbank is a subsidiary of Meridian Credit Union, and launched this past April 2019. Motusbank is CIDC insured and offers 2.25% interest on their unregistered savings accounts, and 2.50% interest on their tax-free savings account (TFSA).

Details

  • No monthly fees
  • No minimum deposit or balance
  • Unlimited debit purchases and withdrawals

Deposit protection: Insured by CDIC

Interest rate: 2.25%

5. EQ Bank

EQ Bank logoLike I mentioned at the beginning of this post, EQ Bank is where I have a few savings accounts for my short-term goals like my Emergency Fund. Owned by Equitable Bank, EQ Bank launched in January 2016.

At the time, they were the only bank to offer as high of interest as 2.30%. Unfortunately, they’re no longer the top dog, though they have expanded their product line to include GICs as well. They are of course CDIC insured and continue to offer 2.30% interest on their savings accounts.

Details

  • No monthly fees
  • No minimum balance required
  • Unlimited Interac e-transfers
  • Unlimited transfers and bill payments
  • Maximum balance per customer is $200,000

Deposit protection: Insured by CDIC

Interest rate: 2.30%

6. Oaken Financial

Oaken Financial LogoA bank you may not have heard of but has been around since 2013 is Oaken Financial. They are actually owned by Home Trust Company, which started as a trust company back in 1987. If you open a savings account with Oaken Financial, you can enjoy 2.30% on all your deposits and feel secure since all deposits are CDIC insured.

Details

  • No monthly fees
  • No minimum balance required
  • Unlimited transactions

Deposit protection: Insured by CDIC

Interest rate: 2.30%

7. Alterna Bank

Alterna BankI also mentioned Alterna Bank as a great no-fee bank in Canada, and they also offer fairly high interest on their savings accounts too!

As a reminder, Alterna Bank launched in 2000 and is a subsidiary of Alterna Savings, an Ontario credit union. They are CDIC insured and offer 2.30% interest on their savings accounts.

Details

  • No monthly fees
  • No minimum balance required
  • Free, unlimited bill payments, transfers and debits
  • Free, unlimited Interac® e-Transfers

Deposit protection: Insured by CDIC

Interest rate: 2.30%

8. Achieva Financial

Achieva Financial logoAchieva Financial is a division of Cambrian Credit Union and has surprisingly been since 1998! For that reason, Achieva is considered one of the first online banks in Canada.

Since Cambrian Credit Union is a Manitoba credit union, deposits with Achieva Financial are protected under the Deposit Guarantee Corporation of Manitoba. If you open a savings account with Achieva, you can enjoy earning 2.30% interest.

Details

  • No monthly fees
  • No minimum balance required
  • Free deposits and one free cheque, direct transfer or pre-authorized payment every month
  • $1 per month paid to you when you choose to receive your documents electronically

Deposit protection: Insured by DGCM

Interest rate: 2.30%

9. WealthOne Bank

WealthOne Bank of Canada LogoWealthOne Bank is a fairly new bank, having launched in 2016. Even though they are predominantly an online bank, they also have physical offices in Ontario and British Columbia. Not only that, as referenced on their website, they were born out of a need to better serve the Chinese Canadian community. They are CDIC insured and offer a 2.30% interest rate.

Details

  • No monthly fees
  • No minimum balance required
  • Free unlimited transactions
  • 10 free bill payment transactions per month

Deposit protection: Insured by CDIC

Interest rate: 2.30%

10. Ideal Savings

Ideal Savings LogoIdeal Savings is another bank I actually didn’t know existed until I was doing mt research for this post. Similar to other banks I’ve mentioned, Ideal Savings is a division of Carpathia Credit Union and launched in July 2016. Deposits made to Ideal Savings are guaranteed by the Deposit Guarantee Corporation of Manitoba, and you can earn 2.40% with their savings accounts.

Details

  • No monthly fees
  • 3 free Automatic Fund Transfers (AFT) per month

Deposit protection: Insured by DGCM

Interest rate: 2.40%

11. Implicity Financial

Implicity Financial logoImplicity Financial has been around since December 2012, and they are a division of Entegra Credit Union. Entegra was founded in Manitoba over 50 years ago and has 4 locations throughout the province. Deposits to Implicity Financial are guaranteed by the Deposit Guarantee Corporation of Manitoba and you can earn 2.40% interest with their savings accounts.

Details

  • No monthly fees
  • No minimum balance required

Deposit protection: Insured by DGCM

Interest rate: 2.40%

12. MAXA Financial

MAXA Financial LogoWe are almost at the end! The bank with the second-highest interest in Canada is MAXA Financial. This online bank, which launched in 2006, is a division of Westoba Credit Union, a Manitoba-based credit union founded in 1963. Deposits are guaranteed by the Deposit Guarantee Corporation of Manitoba, and the interest rate currently offered on their savings accounts is 2.45%.

Details

  • No monthly fees
  • No minimum balance required

Deposit protection: Insured by DGCM

Interest rate: 2.45%

13. Motive Financial

Motive FinancialWinner, winner, chicken dinner! Motive Financial is the bank that offers the highest interest on savings accounts in Canada! They are also one of the top 5 no-fee banks in Canada, so not a bad bank to think about checking out.

Motive Financial launched in 2017 and is a division of Canadian Western Bank, a CDIC insured financial institution. In addition, Motive offers two different savings accounts to choose from, one is definitely better than the other. With their Motive™ Savings Account, you can earn 1.50% interest. But, with their Motive® Savvy Savings™ Account, you can earn a whopping 2.80% interest!

Details

  • No monthly fees
  • Unlimited deposits
  • 2 free monthly withdrawal per month ($5 after that)
  • Free transfers between Motive accounts

Deposit protection: Insured by CDIC

Interest rate: 2.80%

And there you have it! That’s 13 high-interest savings accounts in Canada that offer 2% or more in interest! I hope this post (and my video) have been helpful!

Looking to earn 2% or higher on your savings accounts? It's possible, and here's a long list of banks that offer them!

Looking to earn 2% or higher on your savings accounts? It is possible, and here is a long list of banks that offer them! #savingsaccounts #banking #personalfinance #highinterest #money #makingmoney
Disclosure: Nothing on my website or affiliated channels should be considered advice or an endorsement, and some content may include affiliate links in which I may earn a commission at no extra cost to you. Please read my disclaimer to learn more.
Showing 8 comments
  • Doug Mehus
    Reply

    Hi Jessi,

    I don’t normally follow your blog, but your noting Canadian ShareOwner Investments as being CDIC insured isn’t quite right. Perhaps you were wanting to simplify the deposit protection of Wealthsimple Save for your audience, so you may well know this, but if I can clarify for your readers and you can feel free to use my wording or modify it as applicable:

    Wealthsimple Save is essentially a “savings wrapper” for various financial institutions, which include several of the Big 5 banks and Equitable Bank’s brokered deposits. The Big 5 banks themselves actually pay between 1.90-1.95% on their HISAs in the broker channel (funny how they can barely manage 1% in the direct-to-consumer channel, eh!?) if you buy the advisor F class series of “fund” (reduced to 1.60-1.65% in discount brokerages, if you buy directly). It’s not actually a mutual fund, but is assigned a FundSERV code since brokered deposits through investment and mutual fund dealing firms trade through the FundSERV platform and GICs, similarly, trade through the gicSERV platform. Officially, your savings are registered in the name of the awkwardly-sounding The Canadian Depository for Securities, Limited–itself a subsidiary of The TMX Group, Inc.–in trust for your investment/mutual fund dealing “carrying broker” (in non-registered accounts) or your broker’s trustee/plan administrator (in registered accounts) that, in turn, hold the funds in trust for you. Trust deposits are definitely CDIC insured, but there are separate reporting requirements on the issuers.

    I don’t have a Wealthsimple Save account, so am not quite sure if they break down the separate CDIC issuers in which your funds are held or whether it’s more like a pooled trust account in trust for you such that Wealthsimple folds the funds across all issuers in a separate “fund” and then it pays the effective average yield out to you.

    Nevertheless, since each of their partner CDIC issuers has a $100,000 deposit insurance limit, for which there are at least three, they can get to $1 million in CDIC insurance per depositor because each of the Big 5 banks (and now Equitable) have multiple subsidiary entities that are CDIC members.

    So, perhaps it’s more useful to say that Wealthsimple Save deals with 3-5 CDIC members, each insured to $100,000 per depositor, and each account is CIPF insured against loss of funds due to Canadian ShareOwner Investment’s misappropriation of funds or insolvency, both of which are unlikely.

    Advantages of Wealthsimple Save are huge, though, including:
    – Ease of adding funds;
    – Useful round up and automatic savings tools;
    – Widely praised mobile apps; and,
    – Quicker access to Wealthsimple Black when you combine your Save and Invest accounts, if you decide to use their robo-advisor platform.

    Cheers,
    Doug

  • Maria @ Handful of Thoughts
    Reply

    I had no idea there were so many options. Like you I too have banked with Tangerine for years (when it was ING). I always thought they had the best rates. I knew that lately there are better options out there. I just had no idea how much better. Thanks for doing the leg work now I don’t have to shop around before opening a new high interest savings account.

    • Jessica Moorhouse
      Reply

      I had no idea there were this many options too before I did my research! There are so many small online banks by credit unions I had no idea even existed! So glad I shed some light for you and thanks for the comment! 🙂

  • Kari
    Reply

    Hi Jessica. This is a great summary of all the Canadian options! Recently, my teen son wanted to open a HISA to save his part-time job income. We selected Motive because it was the highest interest rate. But I had to open it in my name rather than his, because he’s not 18 yet. I’m not sure if this is a policy across the board for all FIs? Anyways, 2.8% isn’t get-rich-quick income but it’s way better than the 0.05% he was getting at BMO.

    • Jessica Moorhouse
      Reply

      You’re right, for anyone under 18 all they can open is a Youth Account and those I believe are only provided by the big banks. That being said, they shouldn’t charge any fees but they also don’t provide high interest. But once your son hits 18, that’s when he’ll be able to open a regular account with an online bank like Motive.

  • Kamal Atwal
    Reply

    Thank you so much for posting it… I am definitely gonna a book mark this post its soo helpful.

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