Best RBC High Interest Savings Accounts and Alternatives (2022)

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by Enoch Omololu

Updated

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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 0.50% annual interest rate, this account will pay you approximately $50 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 Accounts

RBC offers a number of savings accounts, including;

  • RBC High Interest eSavings: This HISA offers a 0.50% rate which is RBC’s highest as of this update on June 6, 2022.
  • 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 0.25% 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 0.50% 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 transaction 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 1.50%* 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
  • $150 cash bonus for a limited time
  • 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 1.50% interest rate.

EQ Bank is a subsidiary of Equitable Bank, a ‘big’ bank in Canada with over $42 billion in assets.

OPEN A EQ BANK SAVINGS ACCOUNT

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

KOHO Earn Interest

KOHO’s Earn Interest account pays 1.20% interest on your entire balance when you set up a direct deposit to your account e.g. your paycheque.

It also offers these features:

  • Prepaid Visa card that pays 0.50% to 2.00% cash back on all purchases
  • Unlimited free debits and Interac e-Transfers
  • Automated savings
  • Free financial advice
  • Free budgeting app
  • Free money transfers between peers
  • CDIC insurance

Get a $20 welcome bonus (referral code CASHBACK) when you sign up for KOHO and make your first purchase using the card. You can also learn more in this KOHO vs. Neo Financial comparison.

RBC High Interest Savings vs. EQ Bank Savings Plus Account

 RBC High Interest eSavings AccountEQ Bank Savings Plus AccountKOHO
Monthly fee$0$0$0
Interest rate0.05%1.50%*1.20%
Free debt transactions1 ATM debit/month; free transfers to personal RBC accountUnlimited free debits, bill payments, and electronic fund transfersUnlimited free debits, bill payments, and electronic fund transfers
Debit transaction fees$5 each$0$0
Free Interac e-TransfersNone; $1.00 eachFree (unlimited)Free (unlimited)
CDIC InsuranceYesYesYes
Other featuresSave Matic for automatic savingsMobile cheque deposits, joint savings, GICs, cheap global money transferAccess to early payroll and credit building
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 June 2022, the standard interest rate on RBC’s high interest savings account is 0.50%.

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 1.50%.

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.

Best Banking Offers in July 2022

Get a free chequing account and a *$350 cash bonus*

Unlimited free debits and Interac e-Transfer transactions.

No monthly account or transaction fees.

$350 cash bonus when you deposit $100 for 3 months.

Earn a high-interest rate on your savings (3% interest rate offer).

No monthly or minimum balance is required.

Earn cash back on purchases & grow your savings ($20 bonus)

Free reloadable prepaid card and budgeting app.

Up to 2% cash back on all purchases and 10% at brand partners.

1.20% savings interest on your entire account balance.

Get 3-day early access to $100 of your paycheque for free.

$20 bonus after using the card for your first purchase (use CASHBACK referral code at signup).

Get one of the highest savings rates in Canada ($150 bonus)

1.65% interest on every dollar.

Up to 150x interest more than other banks.

Combines savings and chequing account features.

Get a $150 cash bonus when you set up a payroll direct deposit.

No monthly fees and free unlimited transactions and Interac e-Transfers.

Best no-fee cashback credit card with $100 bonus

Earn 2% unlimited cash back in three spending categories.

Get a $100 welcome bonus with $1,000 spending in first 2 months.

0.5% unlimited cash back on all other purchases.

1.95% low balance transfer rate and insurance coverage benefits.

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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. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, 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.

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