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Best RBC High Interest Savings Accounts and Alternatives (2024)

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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 1.70% annual interest rate, this account will pay you approximately $170 after a year when you deposit $10,000.

RBC is not alone in 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.

RBC High Interest Savings Accounts

RBC offers several savings accounts, including;

  • RBC High-Interest eSavings: This HISA offers a 1.70% rate which is RBC’s highest as of this update on January 26, 2024.
  • 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 0.50% 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 1.70% 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 one 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.

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.’

Pros and Cons of RBC High Interest eSavings Account

On the positive side, the RBC High Interest eSavings Account offers a higher interest rate than its regular savings accounts. This means you can earn more money on your deposits, helping you reach your savings goals faster.

Additionally, your deposits in a high interest savings account are insured by the CDIC, and RBC is one of Canada’s largest banks, which provides peace of mind.

You can set up automatic transfers from your chequing account to automate your savings. And lastly, this account has no monthly fees.

Regarding downsides, the interest rate offered by this account is not as competitive as what you get at some online banks. The current high inflation rate could mean you are losing purchasing power over time.

Also, RBC may charge transaction fees when you use make debit withdrawals, such as Interac e-Transfers and ATM transactions.

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 through 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 offer.

EQ Bank Savings Plus Account

The EQ Bank Personal Account offers up to a 4.00%* 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 3.00% interest rate.

EQ Bank is a subsidiary of Equitable Bank, a ‘big’ bank in Canada with over $63 billion in assets. You can also learn more about the bank in this EQ Bank review.

OPEN AN EQ BANK PERSONAL ACCOUNT

Neo High Interest Savings Account

Neo Financial’s High Interest account pays 4.00% interest on your entire balance. It also offers access to these features:

  • Prepaid card that pays up to 5% cash back on your purchases (Neo Money)
  • Automated savings
  • Free budgeting app
  • CDIC insurance

Get a $20 welcome bonus when you also sign up for the free Neo Money card and fund your account with $50 or more. You can also learn more in this Neo Financial review.

RBC High Interest Savings vs. EQ Bank Savings Plus Account

 RBC High Interest eSavings AccountEQ Bank Savings Plus AccountNeo Financial
Monthly fee$0$0$0
Interest rate1.70%Up to 4.00%*Up to 4.00%
Free debt transactions1 ATM debit/month; free transfers to personal RBC accountUnlimited free debits, bill payments, electronic fund transfers, and ATM withdrawalsUnlimited free debits, bill payments, and electronic fund transfers via Neo Money
Debit transaction fees$5 each$0$0 (Neo Money)
Free Interac e-TransfersNone; $1.00 eachFree (unlimited)Free (unlimited for Neo Money)
CDIC InsuranceYesYesYes
Other featuresSave Matic for automatic savingsMobile cheque deposits, joint savings, GICs, cheap global money transferEarn cash back when you add a Neo Money account to their HISA
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 January 2024, the standard interest rate on RBC’s high interest savings account is 1.70%.

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 offering free transfers, withdrawals, and bill payments? Do you prefer in-person transactions? Etc. EQ Bank offers one of the best savings rates in Canada.

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:

Top Banking Offers for April

Stop paying monthly fees with a free chequing account + $400 bonus

Get $400 cash bonus when you direct deposit $100 for three months.

Unlimited debits, online bill payments and Interac e-Transfer transactions.

No monthly account or transaction fees.

Get a high interest rate on your savings (6.00% interest rate offer).

Get the TOP spending and savings account with 5% rewards and $20 bonus

Instant approval and a $20 welcome bonus when you make your first purchase.

Earn up to 5% unlimited cashback on purchases while paying no fees!

Earn 3.00% to 5.00% interest on your entire account balance.

Free debits, e-Transfers, bill payments, budgeting app, and access to credit building.

Earn a regular 4.00% interest on your savings account

Earn a non-promotional 4.00% high interest rate on every dollar.

Free access to a hybrid account with unlimited transactions & e-transfers.

Access to a prepaid card that pays an average cashback of 5% on purchases.

No monthly or annual account fees; free budgeting app.

Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

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