Your big bank's savings account pays 0.5–1.5%. Online banks pay 3–4%+ on the same CDIC-insured deposits. Here's where your cash actually belongs.
Big bank savings accounts consistently pay well below the Bank of Canada overnight rate. As of early 2026, the BoC overnight rate is around 2.75–3.0% — yet most big bank HISA rates hover at 0.5–1.5%. Online banks and credit unions with lower overhead pass more of the rate to depositors.
The math: $50,000 at 0.75% (big bank) = $375/year. $50,000 at 3.5% (EQ Bank) = $1,750/year. That's $1,375 in extra income for a 15-minute account opening. CDIC-insured. Same safety.
Note: All rates below are approximate as of Q1 2026 and change frequently with Bank of Canada rate decisions. Always verify directly with the institution before opening an account.
EQ Bank is consistently at the top of Canadian HISA rates. No monthly fees, no minimum balance, unlimited transactions, and the rate applies to your full balance (not just teaser amounts). TFSA Savings Account earns the same rate tax-free.
EQ Bank is a schedule I bank (federally regulated), and deposits are CDIC insured up to $100,000 per depositor per category. No physical branches — fully digital. GIC rates are also very competitive (typically 3.5–4.5% on 1–3 year terms).
Best for: Emergency fund, short-term savings, FHSA savings, TFSA cash portion.
Oaken Financial is a subsidiary of Home Bank (CDIC member), offering some of the most consistently competitive HISA and GIC rates in Canada. No monthly fees, no minimum. GIC rates are particularly strong — often beating EQ Bank on 1–2 year terms.
No debit card or chequing features — money moves in and out via EFT. Best used as a dedicated savings/GIC institution alongside a chequing bank.
Best for: GIC laddering, high-yield cash savings without daily banking needs.
Tangerine (owned by Scotiabank) offers a more full-featured digital bank experience — debit card, bill payments, mobile cheque deposit, RRSP/TFSA/FHSA accounts. The regular savings rate is decent; Tangerine frequently runs 5%+ promotional rates for new deposits (90 days), which can be worth capturing if you're timing a large cash holding.
Mutual funds available through Tangerine have reasonable MERs (0.75–1.07%) — not as cheap as ETFs, but one of the better mutual fund options for hands-off investors who can't access Wealthsimple or Questrade.
Best for: People who want a full digital bank and decent savings rates. Good for TFSA cash savings.
Simplii (owned by CIBC) offers free chequing and a competitive savings account. The rate is slightly below EQ and Oaken but comes with full banking features. Regularly runs promotional rates for new deposits.
Best for: People who want CIBC ATM access and a savings account in one package.
KOHO is a fintech prepaid card that earns interest on the float in your account. KOHO accounts are held at Peoples Trust (CDIC member), so deposits are insured. The Standard plan earns 2.5%; Essential ($4/mo) and Extra ($9/mo) tiers earn 3–5%. Also earns 1–2% cash back on purchases.
Note: KOHO is not a bank — it's a prepaid card with savings features. The interest earn structure is different from a traditional HISA. Good for everyday spending + saving, not as a replacement for a standalone high-interest account.
| Institution | Approx Rate | CDIC Insured | TFSA Available | Monthly Fee | Full Banking |
|---|---|---|---|---|---|
| EQ Bank | ~3.50% | Yes | Yes | $0 | Partial |
| Oaken Financial | ~3.40% | Yes | No TFSA | $0 | Savings/GIC only |
| Tangerine | ~3.00–3.25% | Yes | Yes | $0 | Yes |
| Simplii Financial | ~2.75–3.00% | Yes | Limited | $0 | Yes |
| KOHO Premium | ~3.0%+ | Yes (Peoples Trust) | No | $9/mo | Prepaid card |
| Big Bank HISA (avg) | 0.5–1.5% | Yes | Yes | Varies | Yes |
*Rates as of approximately Q1 2026 and change frequently. Always verify at the institution's website before opening an account.
Alongside traditional HISAs, there's a newer option: High-Interest Savings ETFs (HISA ETFs) that you can hold inside your brokerage account (TFSA, RRSP, or non-registered).
The main HISA ETFs in Canada:
HISA ETF vs traditional HISA:
Important note on HISA ETFs: In 2023, OSFI (the Canadian banking regulator) imposed new liquidity rules on banks that hold HISA ETF deposits, causing some HISA ETFs to reduce their rates. HISA ETF yields can fluctuate more than traditional HISAs based on regulatory changes. Check current yields before assuming rates.
Liquid, no risk of loss, no lock-in. EQ Bank Savings Account or Tangerine. Not a GIC, not an ETF — you need instant access. Inside your TFSA if you have room.
A GIC ladder or HISA ETF. For a house down payment in 2 years, a 2-year GIC at Oaken Financial at 4%+ guarantees your return. For flexible timing, HISA ETF or HISA savings account.
If you're 3–5 years from retirement and holding a cash component, HISA ETFs or a GIC ladder (rolling 1-, 2-, 3-, 4-, 5-year GICs) provide better returns than a bank savings account with manageable lock-in risk. See GIC vs mutual funds →
Keeping your emergency fund in your TFSA (in a HISA or HISA ETF) is tax-efficient — the interest is tax-free. The catch: TFSA withdrawals restore room on January 1 of the following year, not immediately. Know this before you rely on TFSA funds for true emergencies. Best TFSA investments guide →
Once your emergency fund is set up, your investing dollars should be working harder. See how to start investing the rest.
Start Investing in Canada Best TFSA InvestmentsNothing on this site is financial advice. HISA rates change frequently in response to Bank of Canada rate decisions — always verify current rates directly with the institution. CDIC coverage rules are complex — visit CDIC.ca for details on coverage limits and eligible deposits. Some links may be affiliate links.