Skip GICs: New Bank Account Pays High Interest on Cash

Canadian investors often keep cash in their portfolios for practical reasons: it acts as a buffer against market swings, provides quick access for emergencies or unexpected costs, and leaves liquid capital available to seize attractive investment opportunities. Cash can play a vital role alongside stocks, bonds and other assets, especially for short- and medium-term goals.

Historically, Canadians had a handful of options to hold and grow cash: high-interest savings accounts (HISAs), guaranteed investment certificates (GICs) and money market funds (MMFs). The arrival of an accessible notice savings account (NSA) adds another tool for savers seeking both higher yields and controlled access to funds.

Below is a clear overview of EQ Bank’s new Notice Savings Account, which offers either 2.85% or 3.00% annual interest depending on the product selected. Learn how an NSA fits into a cash strategy and why it may suit specific savings goals.

Why keep cash in your portfolio?

Many investors concentrate on equities, mutual funds and ETFs, but cash still plays an important role. Including cash in a diversified portfolio helps reduce overall volatility and preserves capital. A well-balanced allocation typically combines equities, fixed income (like bonds or GICs), and cash—each serving different objectives based on your time horizon and risk tolerance.

Cash is stable: unlike stocks or bonds, its nominal value does not fluctuate day to day. If you deposit $1,000 into a savings product, you expect to have that principal intact plus any interest earned when you need it. Cash is also liquid—you can access it quickly without having to sell other investments, which is useful for emergencies, short-term expenses, or timely investment opportunities.

Where Canadian savers can keep cash

Beyond a chequing account, the main Canadian options for holding cash have been HISAs, GICs and MMFs. Notice savings accounts are now available to retail customers in Canada for the first time through EQ Bank, offering NSA features such as no minimum deposit and CDIC protection. CDIC coverage provides insurance up to $100,000 per eligible account if a participating institution fails.

	EQ Bank NSA	HISA	GIC	MMF
Interest rate or yield	2.85% or 3.00% (depending on product)	Typically ranges from near 0% up to several percent, depending on promotions and provider	Varies by term; shorter GICs tend to earn less than longer, locked-in terms. Recent 30-day GICs ranged around the low-to-mid single digits.	Money market funds have recently shown yields in the low single digits to mid-single digits, depending on the fund
Withdrawal terms	Requires 10 or 30 days’ notice, depending on the account	Generally immediate or within a few days for transfers	Accessible at maturity, unless the GIC is cashable or redeemable earlier	Usually takes a few business days to redeem
Minimum balance	No minimum	Often none	Typical minimums of $500 for many providers; some providers offer lower minimums	Minimums vary by fund, from $100 to several thousand dollars
Maximum contribution	$200,000 individual, $500,000 joint for EQ’s NSA	Depends on provider; registered accounts have contribution limits set by government rules	Usually no practical maximum in non-registered accounts; registered products constrained by RRSP/TFSA rules	No standard maximum
Fees	None	Occasionally	Generally none	Management fees typically apply and can range up to around 1–2%
CDIC coverage (up to $100,000)	Yes	Yes	Yes for eligible products	No

How a notice savings account works

Notice savings accounts are common in some other markets but have been rare in Canada for retail investors. An NSA combines higher interest with structured access: deposit funds freely and earn interest, but give your bank a set notice period before withdrawing. Generally, longer notice periods come with higher interest.

EQ Bank’s Notice Savings Account is offered in two versions: a 10-day and a 30-day option. The 10-day product pays 2.85% interest, while the 30-day product pays 3.00%. Interest accrues daily on your closing balance and is paid monthly. Deposits can be made at any time without penalties, and withdrawals are initiated by submitting a request through EQ’s online or mobile banking platform.

Who should consider a notice savings account?

An NSA suits savers who want a better return than a typical savings account while maintaining relatively quick access to cash. HISAs often offer immediate access but sometimes feature temporary promotional rates that may drop. GICs can offer higher rates but lock funds for longer periods. A notice savings account strikes a balance: stronger yields than many HISAs and more flexibility than most GICs, making it a solid option for emergency funds, short-term goals, or a place to park cash until an investment opportunity arises.

Interest on the EQ Bank Notice Savings Account is calculated daily on your closing balance and paid monthly. Rates are quoted on an annual basis and may change without notice.

More on banking and investing

• If you meet certain criteria, a notice savings account could be a good fit for holding short- to medium-term cash reserves.
• New savings options can offer higher interest while preserving flexibility—evaluate the access terms before moving funds.
• Consider opening an FHSA if you are saving for a home; it can complement cash savings products.
• Always read the fine print on promotional rates to understand how long elevated rates last and when they might revert.
• Policy changes to programs like the Home Buyers’ Plan can affect your down payment strategy—factor these into your broader savings plan.