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 1.40% annual interest rate, this account will pay you approximately $140 after a year when you deposit $10,000.
RBC is not alone in offering dismal rates on savings accounts. The high-interest savings offered by CIBC and TD are fairly similar.
For decent savings rates, Canadians need to look beyond the big banks. Online banks such as EQ Bank offer a higher rate which potentially limits the impact of inflation on your purchasing power.
In this article, I compare RBC’s high-interest savings accounts (HISA), their features, associated fees, and alternatives.
RBC High Interest Savings Accounts
RBC offers several savings accounts, including;
- RBC High-Interest eSavings: This HISA offers a 1.50% rate which is RBC’s highest as of this update on March 15, 2023.
- RBC Day to Day Savings: This account offers a tiered savings rate based on your balance (0.005% – 0.01%).
- RBC U.S. High Interest Savings: This US$ account offers a 0.40% 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 1.50% 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 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.
Rearding 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 are offering.
EQ Bank Savings Plus Account
The EQ Bank Savings Plus Account offers a 2.50%* 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
- 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 $43 billion in assets. You can also learn more about the bank in this EQ Bank review.
KOHO Earn Interest
KOHO’s Earn Interest account pays up to 1.50% interest on your entire balance, depending on your account tier.
It also offers these features:
- Prepaid Visa card that pays up to 5% cash back on your 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 Account||EQ Bank Savings Plus Account||KOHO|
|Interest rate||1.40%||2.50%*||Up to 1.50%|
|Free debt transactions||1 ATM debit/month; free transfers to personal RBC account||Unlimited free debits, bill payments, electronic fund transfers, and ATM withdrawals||Unlimited free debits, bill payments, and electronic fund transfers|
|Debit transaction fees||$5 each||$0||$0|
|Free Interac e-Transfers||None; $1.00 each||Free (unlimited)||Free (unlimited)|
|Other features||Save Matic for automatic savings||Mobile cheque deposits, joint savings, GICs, cheap global money transfer||Access to early payroll and credit building|
|Learn more||–||Get this rate||Get this rate|
RBC HISA FAQs
Its HISA account is the RBC High Interest eSavings account.
As of March 2023, the standard interest rate on RBC’s high interest savings account is 1.50%.
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.
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: