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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in the Toronto Star, The Globe and Mail, MSN Money, Financial Post, Winnipeg Free Press, CPA Canada, Credit Canada, Wealthsimple, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

41 thoughts on “Best High-Interest Savings Accounts in Canada for 2021”

    • @Curious Frugal: I think we will see more hikes in the rates in the coming months (if Trump’s trade war doesn’t first dampen economic growth). On the flip side, loan rates will rise even more.

      Reply
  1. Hello,

    I need to open 2 high interest saving account.
    One for my emergency and one for my future condo that I plan to buy in 2 years

    I choose Alterna but I can’t choose the 2nd.
    Any recommandation? I live in Quebec so I can’t choose EQ bank unfortunately.

    Thank you

    Reply
    • @Mady: Based on the current rates as of today, I would look at any of the financial institutions listed above that have a presence in Quebec, such as Wealthsimple, Tangerine, credit unions, etc.

      Reply
  2. Helpful review but there’s an error for Motive Financial. Their HISA only offers 2 free withdrawals per month. Otherwise they charge $5 each withdrawal.

    Reply
  3. Any more details on the “up to $200” for the Tangerine account, how do i ensure i get the full $200 for opening a checking account but also the $50 for a saving account?

    Reply
  4. Great article, you mentioned one of the downsides of a high interest savings account is that you are taxed on the interest earned. Which of the online banks offers the highest return for a TFSA?

    Reply
  5. Hello,
    Is there a way to secure your money over CDIC limit, other than opening multiple accounts with different institutios?

    Reply
    • @Syed: Opening multiple accounts with different banks is one way. Also, different categories of deposits are individually covered even if they are with the same bank. For example, general savings, tfsa savings, chequing, etc.

      Reply
    • @Jean: I checked and their current offer is not too bad. However, you will need to read the terms and conditions very well. The standard base rate is 0.20%, however, if you contribute a specified minimum every month, a bonus rate applies.

      Reply
  6. Is there a difference between how these banks compound their interest, and does that make a significant difference? For example, looks like Motive is compounded annually vs. others are monthly.

    Reply
    • @Samuel: Monthly compounding will give you a bit more money than annual compounding. The significance of the extra amount will depend on the disparity in the interest rates and how large your principal is.

      Reply
  7. Hi Enoch what is your opinion about DUCA Credit Union? They are currently running a promotional rate of 2.5% p.a on a new HISA upto March 31st, 2020. How safe would our funds be with a credit union as opposed to a CDIC insured FI?
    Have a great Easter.

    Reply
    • @Manish: Provincial credit unions are members of a provincial deposit insurance corporation that guarantees deposits up to an amount. In the case of DUCA, eligible deposits in non-registered accounts are insured up to $250,000 through FSRA.

      Reply
  8. This taught me a lot as I’m looking for an accessible money making product for a term of 5 years to want access. After seeing the volatility as a result of the pandemic I’m wondering if the old style of investing still applies or a healthy way is going to emerge.

    Reply
  9. Hi Enoch,
    Ii stumbled on your blog while researching information on how to turn my TFSA into an investment with better returns and no tax on gains. I bank with RBC. The little money sits there and does not earn any interest gain. I was thinking of linking my TFSA account to mutual funds and investing there.

    I must commend you for this great blog that i am sharing with all my networks especially people from The Cameroons. What you are providing here is that typical life saving, and life changing financial education which is not offered in classrooms. Thank you very much brother.
    Also, if you can add whatsapp among your share icons. your shared icons that would be great.

    Reply
  10. EQ Bank has a limit of 200k, Laurentian and B2B have a limit of 500K or the interest goes to nothing. Tangerine usually caps the offers at 500k so the only viable bank paying interest seems to be Motive Financial with the Savvy Savings account at 2.05%. They had a million limit but recently eliminated that and they now pay that rate up to 5 million. So I think Motive probably outshines them all because it is a pretty steady rate. They were at 2.8 for years before finally dropping to 2.05%. I guess the only real question here is how much money are you willing to risk depositing at a bank that falls outside of the big 5.

    Reply
    • @Frank: I would consider EQ Bank, Tangerine and Motive Financial to be very competitive depending on your needs. For example, if you are a bank client who prefers to have all your accounts in one place, Tangerine shines as they essentially offer a full suite of banking products e.g. credit cards, investments, mortgages, chequing, etc. If your goal is a non-promotional interest rate that doesn’t bounce all over the place, EQ Bank and Motive Financial definitely shine in that area.

      Reply
  11. Wealthsimple send to be continuously screwing is over and lowering the interest rate on their account over time.

    When I first opened my account, they were touting a 2.5% interest rate, which is amazing, so I put basically all my savings into this account.

    Then, only a few months later, COVID started and I got an email saying the rate was dropping to 1.5%, then 0.9%, and now it’s only 0.75% which is a far cry from the 2.5%, the entire reason why I signed up for the account. Not to mention the badass looking metal debit card WHICH I HAVE NEVER RECEIVED IN ALMOST A YEAR OF HAVING THIS SAVING.

    Give me my interest rate back and I want my damn debit card.

    Reply
    • @Tony: Interest rates have trended down for all financial institutions this year and this seems to be a theme of the COVID-19 era. Wealthsimple is not alone in this regard as it is a reflection of lower interest rates across the board.

      Reply
  12. Hi Enoch. In regard to Tangerine, it will not extend the advertised 2.1% promotional interest to existing customers. It is only for new customers.

    Reply
  13. What about PeopleTrust? 1.3% on saving (no promo just their regular rate).
    I think Tangerine has gotten worse over the years – once top rates now at bottom 0.1% – promos are only for new customers or for new deposit.
    I agree with Wealthsimple – once great rate now just average.
    Bottom line I“m moving away from Tangerine & Wealthsimple after being a long time customer

    Reply
  14. It is a financial dereliction of duty not to mention the dividend yield offered by these banks on both common and preferred shares. Even the paltry dividend paid by EQ bank is better than most of these savings deposits rates. Landlord or tenant? Dividends(around 4.5 to 5%)compared to those inflation losing returns?

    Reply
  15. Could you please double check the e-transfer fee for motus bank?
    I cannot see anywhere that there is a fee for sending e-transfers using the savings account.

    Second: I am not sure why you are leaving out Canadian Tire Financial which has been the leader at 1.55% since Motive Financial dropped to 1.25%

    Reply
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