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Savings account rates have been trending down in recent times, and that means a lot less returns are being generated in your bank accounts.

While you could increase the interest rate the bank is paying you to save money by using a high interest savings account, these accounts rarely live up to the hype.

Whether it is RBC, TD, Scotiabank, or BMO, Canada’s biggest banks all offer high-interest savings accounts (HISA).

RBC’s HISA is referred to as the RBC High Interest eSavings account.

It offers a modest 0.05% which is frankly a lot less than what you’d earn with the EQ Bank Saving Plus (1.50%) or Tangerine Bank.

This RBC eSavings review covers its features, fees, and alternative savings accounts in Canada.

About RBC

The Royal Bank of Canada is the largest bank operating in the country based on its market capitalization.

Founded in 1864 in Nova Scotia, it has grown into a multi-national financial institution with operations in 35 other countries and 17 million customers.

RBC is traded on the Toronto and New York Stock Exchanges under the symbol ‘RY’.

RBC HIGH INTEREST ESAVINGS ACCOUNT REVIEW

RBC High Interest eSavings Account

If you are looking at upping the ante and earning the most on your savings account with RBC, your best choice is the RBC High Interest eSavings account.

It offers:

  • 0.05% interest rate on every dollar
  • No minimum deposit requirements
  • No monthly account maintenance fee
  • Free electronic transfers to your other RBC savings or chequing accounts
  • 1 free withdrawal from an RBC ATM per month
  • Access to RBC Online Banking, mobile, and telephone banking

You can also use the RBC eSavings to send Interac e-Transfer, however this service comes with a fee.

To open an account, you can visit RBC’s website or call 1-800-769-2561.

Other RBC savings accounts include:

RBC Day to Day Savings: This account offers a tiered interest rate that increases in line with your account balance. Its highest interest rate as of this writing in October 2020 is 0.01%.

RBC Enhanced Savings: This account pays interest on your balance of $5,000 or more. Its highest interest rate is 0.01%.

RBC NOMI Find & Save: NOMI Find & Save studies your spending patterns and automatically moves money from your chequing account into your savings. The interest you earn is 0.05%.

RBC Leo’s Young Savers Account: This RBC children’s account is for kids between the ages of 0-12 years. In addition to a 0.01% interest rate, they also get free Interac e-Transfers and limited Interac e-Transfers.

RBC US High Interest Savings: Earn interest on U.S. dollars up to 0.05%. Learn about the best US$ savings in Canada.

RBC High Interest eSavings Account Fees

The RBC High Interest eSavings account has some transaction fees you should note.

Transaction
Fee
Debits exceeding 1 per month
$5 each
Interac e-Transfer
$1 each
Interac ATM withdrawal
$2
PLus System ATM (Canada and U.S.)
$3
Plus System ATM (outside Canada and U.S.)
$5
Cross-border debit transaction
$1 each

The EQ Bank Savings Plus Account offers unlimited debit transactions and interact e-Transfers, and is worth looking at if you want a flexible savings account.

RBC eSavings vs Alternative Savings Accounts in Canada

The interest rate offered by the RBC eSavings account is much lower that what you’d get from popular online banks.

Higher rates are offered by EQ Bank, Tangerine, Wealthsimple Cash, and the Scotiabank MomentumPLUS Savings account.

1. EQ Bank Saving Plus Account

EQ bank is a subsidiary of Equitable Bank, a Schedule I bank in Canada.

Its Savings Plus Account works like a hybrid (i.e. savings + chequing) with these features:

  • 1.50%* non-promotional (regular) interest rate on every dollar
  • No monthly account fees or minimum fees or minimum balance
  • Free and unlimited debits, bill payments and Interac e-Transfers
  • Free mobile cheque deposits    
  • CDIC protection up to $100,000
  • Joint Savings accounts

Learn more about EQ Bank in this review.

Open a EQ Bank Saving Account

2. Tangerine Savings Accounts

Tangerine Bank is a subsidiary of Scotiabank, a top-5 bank in Canada.

Its high-interest savings account offers a 2.15% promotional rate, followed by 0.15%.

This account has no monthly fee, and free transfers to your other bank accounts.

You can also pair it up with a free chequing account.

Open a Tangerine Savings

3. Wealthsimple Cash

This hybrid account is offered by Wealthsimple, Canada’s most popular online wealth management service.

A Wealthsimple Cash account has no fees and comes with:

  • 0.75% interest rate (regular and non-promotional)
  • CIPF protection up to $1 million

Additional features coming soon to this account include free ATM withdrawals, no foreign exchange transaction fees, and a tungsten metal card.

Open a Wealthsimple Cash Account
RBC High Interest eSavings
EQ Bank Savings Plus
Tangerine Savings Account
Wealthsimple Cash
Financial Institution
Royal bank of Canada
 EQ Bank
Tangerine Bank
Wealthsimple
Interest rate
0.05%
1.50%*
0.15% regular; 2.15% promo for 5 months
0.75%
Monthly fee
$0
$0
$0
$0
Free transactions
1 free RBC ATM debit; free transfers to personal RBC account
Unlimited debits, bill payments and Interac e-Transfers
Free electronic fund transfers
Free transfers to linked bank accounts
Insurance
CDIC
CDIC
CDIC
CIPF
Other features
Save-Matic and MyFinance Tracker; Big 5 bank
Mobile cheque deposits, cheap global money transfer, Joint savings account, automatic savings feature
Access to free chequing account, automatic savings feature, other personal banking accounts
Access to robo-advisor investing, free brokerage platform, cryptocurrency exchange, SRIs, etc.
Learn more

Related reading:

RBC High Interest eSavings FAQ

What is the interest rate on RBC high interest Savings Account?

This account offers 0.05% on your account balance. The interest is calculated daily and paid monthly.

Does RBC offer automatic Savings?

You can use Save-Matic to set up a regular automatic plan with pre-authorized transfers from your chequing account to your savings account. Save-Matic is available on RBC Online Banking. You can also use the RBC NOMI FIND & SAVE digital savings account to automate your savings.

Which bank offers the best savings interest rate?

The best savings interest rate for you will vary as the accounts may have distinct features besides the rates. You can compare the best savings rates here.

What is Canada’s Prime rate?

The prime rate as of October 5, 2020, is 2.45%. Here is the prime rate history over the last 10 years.

Have a RBC high interest savings account? Let us know about your experience in the comments.

RBC High Interest eSavings Account Review
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Summary

The RBC High Interest eSavings Account does not compare well with the best high interest savings rates in Canada. Learn about its features, benefits, fees, and alternative options.