With the Bank of Canada overnight rate sitting at 2.75% in early 2026 — down significantly from the 5.00% peak of 2023 — deposit rates have softened. But online banks and credit unions are still paying 3–5% on savings, which is many times what the Big 5 banks post. Picking the right account and the right registration type (non-registered vs. TFSA) can add hundreds of dollars per year in after-tax income on a $20,000 balance.
Bank of Canada rate context
HISA rates track the Bank of Canada overnight rate loosely. When the BoC cuts rates, deposit rates at online banks tend to follow within weeks. The BoC cut rates seven times between June 2024 and March 2026, bringing the overnight rate from 5.00% to 2.75%. Despite that cycle, competitive online HISAs are still paying meaningfully above inflation — the key is choosing an institution that competes on rate rather than one that relies on customer inertia to justify low yields.
This also means that locking into a 1-year GIC can sometimes outperform a HISA when the market expects further rate cuts, because the GIC rate is fixed at today's level. For money you will not need within 12 months, a GIC ladder can be worth comparing.
Top HISA rates in Canada — April 2026
Rates change frequently — always verify directly with the institution before opening an account.
| Institution | HISA Rate | Insured by | Notes |
|---|---|---|---|
| EQ Bank | 3.75% | CDIC | No fees, no minimum, e-transfers free |
| Saven Financial | 3.85% | FSRA (ON) | Ontario credit union, ongoing rate |
| Peoples Trust | 3.70% | CDIC | Competitive ongoing, no minimum |
| Oaken Financial | 3.50% | CDIC | Home Bank subsidiary, solid ongoing rate |
| Motive Financial | 3.30% | CDIC | Canadian Western Bank subsidiary |
| Tangerine | 5.00% / 0.65% | CDIC | 5% promo for 5 months, then 0.65% |
| Simplii Financial | 3.25% | CDIC | CIBC subsidiary, free chequing combo |
| Wealthsimple Cash | 3.25% | CIPF* | Instant transfers to investing account |
| Big 5 Banks avg. | 0.01–0.10% | CDIC | Avoid for savings — rates are very low |
*Wealthsimple Cash balances are held in trust at CDIC member banks, not covered directly by CIPF. Verify coverage details at wealthsimple.com. Rates are estimates for illustration. Verify current rates directly with each institution.
Promotional vs. ongoing rates — what to watch for
One of the most common mistakes when comparing HISAs is treating a promotional rate as if it is an ongoing rate. Tangerine's 5.00% promotional offer is real — but it applies only for the first five months, after which balances earn their standard 0.65% rate. On a $10,000 balance, the math looks like this:
Worked example: promo vs. ongoing on $10,000
EQ Bank's ongoing rate earns $129 more over 12 months on $10,000 if you leave the money there — despite the flashy Tangerine headline. Promotional accounts make sense if you move balances strategically or only need the account for a few months.
The takeaway: read the fine print on promotional offers. Look for the post-promotional ongoing rate and calculate which institution earns more over your actual holding period. If you track rates and are willing to move funds when promos expire, promotional accounts can be worth chasing. Most people are not — for them, a competitive ongoing rate like EQ Bank or Saven is the simpler win.
CDIC insurance — what is actually covered
The Canada Deposit Insurance Corporation (CDIC) covers eligible deposits up to $100,000 per depositor, per insured category, per member institution. As of 2023, CDIC recognizes eight separate deposit categories:
| Deposit Category | Coverage Limit |
|---|---|
| Deposits in your own name (non-registered) | $100,000 |
| Joint deposits (e.g., joint chequing or savings) | $100,000 |
| Registered Retirement Savings Plans (RRSP) | $100,000 |
| Registered Retirement Income Funds (RRIF) | $100,000 |
| Tax-Free Savings Accounts (TFSA) | $100,000 |
| First Home Savings Accounts (FHSA) | $100,000 |
| Registered Education Savings Plans (RESP) | $100,000 |
| Registered Disability Savings Plans (RDSP) | $100,000 |
This means a couple can hold significantly more than $100,000 at a single CDIC member: $100,000 each in their own names, $100,000 in a joint account, $100,000 each in TFSAs, and so on. Joint accounts are treated as a separate category from individual deposits — not split between account holders.
If you hold more than $100,000 in savings at one institution, consider spreading funds across multiple CDIC members (or using provincially insured credit unions as an additional pool) rather than concentrating everything at one bank.
Provincial credit union protection
Not all competitive HISAs are at CDIC member banks. Several high-rate providers are provincially chartered credit unions, covered by provincial deposit protection instead:
- Ontario: Deposit Guarantee Corporation of Manitoba (DGCM) covers some Manitoba credit unions with unlimited deposit protection; Ontario credit union members are covered by the Financial Services Regulatory Authority of Ontario (FSRA) up to $250,000 per depositor.
- Quebec: Credit unions (caisses populaires) are covered by the Autorité des marchés financiers (AMF) up to $100,000 per depositor per category, similar to CDIC structure.
- British Columbia: Credit Union Deposit Insurance Corporation of BC (CUDIC) covers 100% of deposits with no cap — unlimited protection for BC credit union members.
- Manitoba: Deposit Guarantee Corporation of Manitoba (DGCM) provides unlimited deposit protection for Manitoba credit union members.
Saven Financial, which appears in this article's rate table, is a credit union operating under FSRA in Ontario. Peoples Trust is a CDIC member. Always confirm the insuring body before depositing a large balance.
Tax treatment of HISA interest
Interest earned in a non-registered HISA is fully taxable as income in the year it is credited — even if you do not withdraw it. The Canada Revenue Agency requires your institution to report interest income, and they will issue a T5 slip if your total interest income from that institution exceeds $50 in a calendar year. The T5 reports interest in Box 13.
Worked example: after-tax HISA yield at different marginal rates
Assumption: 4.00% HISA rate on $10,000 = $400 gross interest
~33% combined rate (income ~$55,000, Ontario)
~43% combined rate (income ~$100,000, Ontario)
~53% combined rate (income ~$220,000+, Ontario)
Inside a TFSA (any income level)
This is why HISAs work best inside a TFSA for higher earners. At a 43% marginal rate, a 4.00% HISA pays the same after-tax as a 2.28% account inside a TFSA — meaning the TFSA version is worth 1.72 percentage points of rate, every year.
The implication is straightforward: if you are in a high marginal bracket and have unused TFSA room, the best HISA is almost always a TFSA savings account at the same institution. The after-tax advantage compounds significantly over time.
HISA inside a TFSA — the best combination
Most Canadians do not realize they can hold a high-interest savings account inside their TFSA. The mechanics: your TFSA contribution room is used when you deposit funds, but the interest earned inside the account does not count against your room and is never taxed — not reported on a T5, not included in income, and not affecting GIS or OAS clawback calculations.
- You earn 3–4%+ on your savings with full after-tax yield
- Withdrawals are permitted at any time — contribution room is restored the following January 1
- No T5, no income reporting, no marginal rate math required
EQ Bank's TFSA savings account is a frequently cited option because the rate is competitive and the account has no minimums and no monthly fees. Your TFSA dollar limit for 2026 is $7,000 (plus any accumulated unused room since 2009). Use our TFSA Calculator to estimate your current room.
HISA vs GIC — which should you choose?
Both are safe, low-risk places to store money. The difference comes down to flexibility:
| Feature | HISA | GIC |
|---|---|---|
| Access to funds | Anytime (no lock-in) | Locked for term length |
| Rate type | Variable (tracks BoC) | Fixed for entire term |
| Rate level (April 2026) | 3.25–3.85% ongoing | 3.50–4.25% (often higher) |
| Best for | Emergency fund, short-term cash | Money you won't need for 1–5 years |
| CDIC / provincial coverage | Yes (at member institutions) | Yes (at member institutions) |
Smart strategy: HISA + GIC ladder
Keep 3–6 months of essential expenses in a HISA as your emergency fund (instant access). Put surplus savings in a GIC ladder: split across 1-year, 2-year, and 3-year GICs so one matures each year. This earns more than a HISA while keeping regular access to a portion of your savings.
Where to keep your emergency fund
Your emergency fund needs to be accessible within 1–2 business days and earning at least the rate of inflation. General rules:
- 3 months of essential expenses minimum — covers most job losses, car repairs, or medical expenses
- 6 months recommended — especially for self-employed Canadians, contract workers, or those with variable income
- Hold it in a TFSA savings account — tax-free interest and instant access; the combination removes the marginal rate drag illustrated above
- Do not invest it in equities — a market decline is exactly when you are most likely to need emergency cash; forced selling at a low is the worst outcome
The cost of low rates — a five-year comparison
The major banks (RBC, TD, Scotiabank, BMO, CIBC) typically post 0.01–0.10% on standard savings accounts. On $20,000, that is $2–$20 per year. At EQ Bank's ongoing rate of 3.75%, the same $20,000 earns $750 in year one — and roughly $4,100 over five years with compounding. If held inside a TFSA, that entire $4,100 is yours with no tax owed.
The five-year cost of staying at the big bank
$20,000 at 0.10% for 5 years = $100 in interest. The same $20,000 at 3.75% for 5 years = ~$4,100 — a $4,000 difference, fully tax-free inside a TFSA. That gap is not from picking stocks or taking risk; it is from opening a different savings account.
Frequently asked questions
What is the best high-interest savings account in Canada right now?
There is no single best HISA for every Canadian because rates, promo periods, account features, and insurance coverage change often. In early April 2026, strong choices generally include online banks and niche institutions such as EQ Bank, Oaken Financial, Simplii, Tangerine, and selected credit unions, depending on whether you value the highest rate, a TFSA option, or simpler day-to-day banking.
Should I keep my emergency fund in a HISA or a GIC?
Your core emergency fund usually belongs in a HISA because you need quick access without lock-in risk. A GIC can make sense for extra cash you are confident you will not need for at least a year, especially if fixed rates are meaningfully higher.
Can I hold a savings account inside a TFSA?
Yes. Many Canadians use a TFSA savings account to earn interest tax-free on short-term money. It can work well for emergency savings or a near-term purchase fund if you have available TFSA room.
Are high-interest savings accounts in Canada insured?
Many HISAs are protected by CDIC when offered by member institutions, while some credit unions are insured provincially instead. You should confirm the exact coverage and registration rules before moving a large balance.
Why do big-bank savings accounts pay so little interest?
Large banks often keep standard posted savings rates very low because many customers leave idle cash there for convenience. Online banks and promotional accounts usually compete harder on yield, which is why the rate gap can be large.
Do I have to report HISA interest on my taxes?
Yes, unless the HISA is held inside a registered account (TFSA, RRSP, or FHSA). Interest earned in a non-registered HISA is fully taxable as income in the year it is credited. Your institution will issue a T5 slip if your interest income exceeds $50.
Is a promotional HISA rate worth switching for?
It depends on how long you can earn the promotional rate and whether the ongoing rate after the promo period is competitive. For large balances, even a 5-month promotional rate can be worth the switch, but factor in any transfer fees and the time it takes to move funds.
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