Saving money has become more challenging as everyday costs rise. With inflation affecting prices across the board—groceries, housing and services—many Canadians are taking steps to protect their purchasing power. A 2023 report from Rakuten found that 87% of Canadians are using cost-saving strategies to manage rising expenses. One effective approach is to park cash in a savings account that earns a competitive interest rate so your money preserves or grows in value over time.
Choosing the right savings product means looking beyond just the headline rate. The account type, fees, access methods and the institution’s service model all matter. Your choice depends on your goals—whether you’re building an emergency fund, saving for a home or investing for retirement. Below is a practical breakdown of the main savings account types, what they’re best for, and notable options available in Canada.
Best high-interest savings accounts in Canada
High-interest savings accounts (HISAs) are designed to offer higher rates than typical chequing accounts, often with simple access to your funds. Remote-only banks and online providers frequently offer the most competitive rates because they avoid branch costs. If in-person service matters to you, consider institutions with physical branches—even if their rates tend to be lower.
Examples of top high-interest savings accounts to consider:
- Best HISA rate: Saven Financial High Interest Savings Account
- Best combination of rate and no fees: EQ Bank Personal Account*
- Best credit union HISA: Maxa Financial High-Interest Savings Account
- Best hybrid account: Wealthsimple Cash
- Best promotional rate: Tangerine Savings Account
- Best tiered-rate option: Scotiabank MomentumPlus Savings Account
The best tax-free savings accounts (TFSAs)
Tax-Free Savings Accounts (TFSAs) let Canadians save or invest with tax-free growth and tax-free withdrawals. A TFSA can hold cash, ETFs, stocks, bonds, GICs and mutual funds. Because earnings and withdrawals are not taxed, TFSAs are versatile for both short- and long-term plans.
Notable TFSA options to evaluate:
- Best TFSA account: EQ Bank TFSA Savings Account*
- Best for mutual funds: Qtrade
- Best for interest rates: CIBC
The best registered retirement savings plans (RRSPs)
Registered Retirement Savings Plans (RRSPs) are government-registered accounts intended to help Canadians save for retirement. Contributions reduce taxable income in the year they’re made, and investments grow tax-deferred inside the plan. Withdrawals are taxed as income, but many people withdraw at lower income levels in retirement, which can reduce the overall tax paid.
Strong RRSP choices include both savings-focused and investment-focused providers:
- Best RRSP savings account: EQ Bank RSP Savings Account*
- Best robo-advisors: Questwealth Portfolio and Wealthsimple Invest
- Best brokerage for passive investing: Wealthsimple Trade
- Best brokerage for active traders: Questrade
- Best for mutual funds: Qtrade
The best first home savings accounts (FHSAs)
Introduced in 2023, the First Home Savings Account (FHSA) helps first-time homebuyers save for a down payment with tax advantages. Qualifying Canadians can accumulate up to $40,000 in tax-free savings room. Not all institutions yet offer FHSAs, but several well-known banks and brokerages now provide FHSA options.
FHSA providers worth checking include:
- EQ Bank
- Fidelity
- National Bank of Canada
- Questrade
- RBC
- Scotiabank
- TD
- Wealthsimple
Watch: How to find the best online bank account
What is a savings account?
Traditional savings accounts pay interest on deposited cash, while registered accounts like TFSAs and RRSPs allow investments to grow either tax-free or tax-deferred. Chequing accounts typically offer little or no interest but provide convenient access for bill payments and daily transactions. Savings accounts are intended to earn returns but often restrict transaction flexibility.
Depending on the account type, you can use savings accounts for short-term goals (a vacation or a car), medium-term goals (a renovation), or long-term objectives (a down payment or retirement).
How to choose the right savings account
Account rules and benefits are a mix of government regulations and the policies set by banks or credit unions. Many savings accounts charge no fees, but some institutions—especially major banks—do impose monthly or annual charges. When possible, look for a rate above 2% to help your deposits keep pace with inflation and preserve purchasing power over time.
Pay attention to transaction limits, withdrawal rules and any conditions that affect the advertised rate. Generally, the highest rates come with greater restrictions, so match the account features to your needs. Ask yourself: How often will I need to access these funds? Do I value higher returns or greater flexibility? The right answer will determine whether a HISA, TFSA or RRSP is the best home for your savings.
Which savings account should you use?
Savings accounts are designed for different purposes, and many people find value in holding more than one type. Here’s a simple guide to pick the right account for each goal:
- High-interest savings account (HISA): Best for low-risk short- to medium-term goals or for holding extra cash when TFSA/RRSP room is full. HISAs have no contribution limits and offer easy access, though interest earned is taxable.
- Tax-Free Savings Account (TFSA): Ideal for Canadians of majority age who want tax-free growth and flexible withdrawals. TFSAs have annual contribution limits that accumulate from the year you become eligible.
- Registered Retirement Savings Plan (RRSP): Suited for long-term retirement saving. Contributions reduce taxable income in the year made and allow investments to grow tax-deferred. Withdrawals are taxed, except under specific programs like the Home Buyers’ Plan or Lifelong Learning Plan.
Read more about investing:
- A guide to the best robo-advisors in Canada
- How a spousal RRSP withdrawal works
- What we learned about investing during a pandemic