Best RBC High Interest Savings Accounts and Alternatives (2021)

If you are looking for the best high interest savings accounts in Canada, you will be sorely disappointed by the rate on RBC’s High Interest eSavings account.

At a 0.05% annual interest rate, this account will pay you approximately $5 after a year when you deposit $10,000.

RBC is not alone when it comes to offering dismal rates on savings accounts. The high interest savings offered by CIBC and TD are fairly similar.

For decent savings rates, Canadians need to look beyond the big banks. Online banks such as EQ Bank offer a higher rate which potentially limits the impact of inflation on your purchasing power.

In this article, I compare RBC’s high interest savings accounts (HISA), their features associated fees, and alternatives.

About Royal Bank of Canada

The Royal Bank of Canada (RBC) is the largest bank in Canada based on its market capitalization.

It was founded in 1864 and has more than 17 million clients worldwide.

RBC’s institution number is 003 and it trades on the Toronto Stock Exchange under the ticker symbol ‘RY’.

RBC High Interest Savings Account

RBC offers a number of savings accounts, including;

  • RBC High Interest eSavings: This HISA offers a 0.05% rate which is RBC’s highest as of this writing on April 12, 2021.
  • RBC Day to Day Savings: This account offers a tiered savings rate based on your balance (0.005% – 0.01%).
  • RBC U.S. High Interest Savings: This US$ account offers a 0.05% rate.
  • RBC Leo’s Young Savers Account: This youth account is available to kids aged 0-12 and offers a 0.01% rate.
  • RBC Enhanced Savings: While it is referred to as a “premium” savings account, RBC Enhanced Savings currently pays a 0.01% rate on balances of $25,000 or more. For lower balances, you earn a lower rate (0% to 0.005%).

RBC High Interest eSavings Account

The RBC High Interest eSavings account offers a 0.05% rate and has no monthly account fee.

You can set up the account to automatically move money from chequing to savings using the Save Matic feature.

While you get 1 free RBC ATM cash withdrawal every month, the following transactions fees apply:

  • $5 for each additional debit transaction
  • $1.00 per Interac e-Transfer
  • $2-$5 ATM fees
  • $1 per cross-border debit transaction

Transfers between your RBC personal accounts are free.

RBC High Interest Savings Account Alternatives

For savings interest rates that may be worth your while, you need to look elsewhere.

In general, online banks in Canada offer higher savings rates than big banks. This is because they have lower overhead costs and can pass on these savings to customers in the form of better rates and cheaper banking overall, including free chequing accounts.

My top choice for the best high interest savings account is EQ Bank.

You can also check to see what digital financial institutions like Motive Financial, Alterna, and Wealthsimple are offering.

EQ Bank Savings Plus Account

The EQ Bank Savings Plus Account offers a 1.25%* interest rate on every dollar you save.

It doesn’t end there. This versatile account works like a combination of a savings and chequing account (hybrid) and offers:

  • No monthly account fees
  • Free and unlimited debit transactions and bill payments
  • Free and unlimited Interac e-Transfers.
  • Free mobile cheque deposits
  • CDIC insurance up to $100,000 per category
  • Joint account options

If you are opening a TFSA or RRSP savings account, EQ Bank offers a 2.30% interest rate.

EQ Bank is a subsidiary of Equitable Bank, a ‘big’ bank in Canada with over $35 billion in assets.

You can also learn more about the bank in this EQ Bank review.

Wealthsimple Cash

This cash savings account is offered by Wealthsimple and has these features:

  • 0.75% interest rate
  • No monthly fees
  • Free money transfers between peers
  • CDIC insurance

The benefit of a Wealthsimple Cash account extends beyond its high interest rate.

Wealthsmple clients also get access to a free brokerage account (Wealthsimple Trade), tax software (Wealthsimple Tax), and an online wealth management service (Wealthsimple Invest).

RBC High Interest Savings vs. EQ Bank Savings Plus Account

 RBC High Interest eSavings AccountEQ Bank Savings Plus AccountWealthsimple Cash
Monthly fee$0$0$0
Interest rate0.05%1.25%*0.75%
Free debt transactions1 ATM debit/month; free transfers to personal RBC accountUnlimited free debits, bill payments and electronic fund transfersFree peer-to-peer money transfers
Debit transaction fees$5 each$0N/A
Free Interac e-TransfersNone; $1.00 eachFree (unlimited)N/A
CDIC InsuranceYesYesYes
Other featuresSave Matic for automatic savingsMobile cheque deposits, joint savings, cheap global money transferAccess to free stock trading app and cryptocurrency trading
Learn moreGet this RateGet this Rate

RBC HISA FAQs

What is RBC’s high interest savings account?

Its HISA account is the RBC High Interest eSavings account.

What is the interest rate on RBC’s high interest savings account?

As of April 12, 2021, the standard interest rate on RBC’s high interest savings account is 0.05%.

Which Canadian bank has the best savings account?

The best savings account for you depends on your needs. For example, do you need an account that also offers free transfers, withdrawals, and bill payments? Do you prefer in-person transactions? Etc. EQ Bank offers one of the best savings rates in Canada at 1.25%.

What is a good interest rate for a savings account?

A great rate is the best rate available i.e. a rate that grows your savings and prevents the loss of purchasing power.

You can learn about the savings account offered by Canada’s biggest banks below:

What’s your take on RBC’s high interest savings account rates? Let us know in the comments.

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Author

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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 and monitors his credit score for free using Borrowell.

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EQ Bank Savings
  • Earn up to 30x more than other banks!
  • Get 1.25% interest rate* on every dollar.
  • Free transactions and no monthly fees.
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
EQ Bank Savings
Earn up to 30x more than other banks! Get a 1.25% interest rate* on every dollar with EQ Bank
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
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