It has been a while since a high-interest savings account (HISA) paid a decent interest rate on your money in Canada.
For example, CIBC’s high interest savings account, the CIBC eAdvantage Savings account, currently earns at a 0.05% rate.
What this means is that if you hold $10,000 for one year at this rate, you can expect to end the year with approximately $10,005 … a “whopping” increase of $5.
A rate this pathetic means you have lost purchasing power given the significantly higher inflation rate of 1-2%.
CIBC’s low HISA rate is similar to what’s being offered by some other big banks such as RBC and TD.
If you want a decent return on your savings, you may need to consider an online bank like EQ Bank which is currently offering a 1.25% non-promotional rate.
This review of CIBC’s high interest savings accounts covers its features, benefits, downsides, fees, and alternatives.
Related: Best Savings Accounts in Canada.
The Canadian Imperial Bank of Commerce (CIBC) was founded in 1961 following a merger of the Canadian Bank of Commerce and the Imperial Bank of Canada.
It is one of the biggest banks in Canada and North America, with more than 10 million customers and 44,000 employees.
CIBC had a market capitalization of $44.4 billion and total assets of $769.6 billion for the year ended October 31, 2020, and trades on the Toronto Stock Exchange under the ticker symbol ‘CM’.
CIBC High Interest Savings Account
CIBC offers a number of savings accounts, including:
- CIBC eAdvantage Savings Account: This HISA offers its best rates on savings in Canadian dollars at 0.05%.
- CIBC Advantage for Youth Account: This kid’s bank account has a 0.05%. It is available to anyone under 18 years of age.
- CIBC US$ Personal Account: Offers a tiered interest rate up to 0.05%.
The CIBC Premium Growth Account and Bonus Savings Account are no longer offered.
CIBC eAdvantage Savings Account
The CIBC eAdvantage Savings Account earns 0.05% on every dollar and has no monthly account fee.
You can use it to set up an automatic savings plan and transfer money from your chequing on a set schedule.
It has the following fees:
- $5 for each transaction (no free transactions are included)
- $1.50 plus transaction fee per Interac e-Transfer when sending
- $2.00 plus transaction fee for each non-CIBC ATM withdrawal
Transfers between your CIBC personal accounts are free.
CIBC High Interest Savings Account Alternatives
For some of the best high-interest savings accounts in Canada, you will need to look beyond the big 5 banks.
Our top choices are EQ Bank, KOHO, and Neo Financial.
EQ Bank Savings Plus Account
EQ Bank’s Savings Plus Account consistently ranks as one of the best savings accounts in the country.
It offers a savings rate of 1.25% that is up to 30x more than the big banks.
Its main features include:
- 1.25%* interest rate on every dollar
- No monthly fees
- Free and unlimited transactions, bill payments, Interac e-Transfers, and electronic fund transfers
- Free mobile cheque deposits fund transfers
- Free mobile cheque deposits
- No minimum balance
- Cheap international money transfers
EQ Banks is the online subsidiary of Equitable Bank, a Schedule I bank with more than $35 billion in assets under management.
Your deposits at the bank are protected by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per insured category.
To open an account online and take advantage of higher interest rates, visit EQ Bank here.
You can also learn more about EQ Bank’s personal banking products, TFSA and RRSP rates (1.25%), GICs, and more in my detailed review of the bank.
KOHO Earn Interest pays a 1.20% interest on your entire balance when you set up a direct deposit (e.g. paycheque) to your KOHO Account.
KOHO users also enjoy the following perks:
- Access to a cash back prepaid Visa card that pays 0.50% to 2.00% cash back on all purchases
- Free budgeting app with automated savings
- Access to early paycheque ($100 3-days early for free)
- Free and unlimited Interac e-Transfers
- Free deposits and withdrawals
- Deposits are eligible for CDIC insurance
- No minimum balance
- $20 welcome bonus
CIBC High Interest Savings Account Vs. EQ Bank Savings Plus vs. KOHO
|CIBC eAdvantage Savings Account||EQ Bank Savings Plus Account||KOHO|
|Free transactions||Transfers to personal CIBC account||Unlimited free debits, bill payments, electronic fund transfers||Unlimited free debits, bill payments, electronic fund transfers|
|Free Interac e-Transfers||$1.50 each||Yes (unlimited)||Yes (unlimited)|
|Free per debit transaction||$5 each||$0||$0|
|Other features||N/A||Mobile cheque deposit, cheap global money transfer||Cashback card, credit building, joint accounts|
|Learn more||–||Get this rate||Get this rate|
CIBC HISA FAQs
Its HISA account is the CIBC eAdvantage Savings Account.
As of January 2022, the standard interest rate on CIBC’s savings account is 0.05%.
Many of the best rates on savings are currently being offered by online banks such as EQ Bank with 1.25% on general savings and 1.25% on TFSAs and RRSPs.
CIBC is a top 5 bank in Canada based on several metrics including its balance sheet size, market capitalization, and global rankings.
You can learn about the high interest savings products for other banks below:
- RBC High Interest Savings Accounts
- Scotiabank High Interest Savings Accounts
- BMO High Interest Savings Accounts
- TD High Interest Savings Accounts
What’s your take on CIBC’s high interest savings account? Let us know in the comments.