High Interest Savings Account Canada Calculator

Finding the right high interest savings account in Canada can be challenging with so many options available. Our calculator helps you compare interest rates, fees, and terms to make an informed decision about where to park your savings.

How High Interest Savings Accounts Work

High interest savings accounts in Canada offer competitive interest rates compared to traditional savings accounts. These accounts typically have lower minimum balance requirements and more flexible terms than term deposits or GICs (Guaranteed Investment Certificates).

Key Features to Consider

Interest Rate: The annual percentage yield (APY) is the most important factor. Look for accounts with rates above the average for your deposit amount.
Fees: Some accounts charge monthly fees for low balances or inactivity. Others may have withdrawal limits.
Minimum Balance: Some accounts require a minimum balance to earn interest, while others pay interest on all balances.
Accessibility: Consider whether you need immediate access to your funds or if you can lock them away for a set period.

High interest savings accounts are different from term deposits or GICs. While GICs typically offer higher interest rates, they often require you to lock your money away for a fixed period.

How Interest is Calculated

The interest earned on your savings is typically calculated using the formula:

Interest = Principal × Rate × Time

Where:

Principal: The amount of money you deposit
Rate: The annual interest rate (expressed as a decimal)
Time: The number of years the money is invested

For example, if you deposit $1,000 at a 2% annual rate, you would earn $20 in interest after one year.

Comparing Canadian Options

Several Canadian banks and credit unions offer high interest savings accounts. Here's a comparison of some popular options:

Institution	Interest Rate	Minimum Balance	Fees
Royal Bank of Canada	Up to 3.50% APY	$0	None
TD Canada Trust	Up to 3.40% APY	$0	None
Scotiabank	Up to 3.30% APY	$0	None
CIBC	Up to 3.20% APY	$0	None
Equitable Bank	Up to 3.10% APY	$0	None

This table provides a general comparison. Always check the terms and conditions of each account before opening one.

FAQ

What is the difference between a high interest savings account and a GIC?

A high interest savings account typically offers more flexible access to your funds, while a GIC (Guaranteed Investment Certificate) usually requires you to lock your money away for a fixed period in exchange for a higher interest rate.

Are there any fees associated with high interest savings accounts?

Some accounts may charge monthly fees for low balances or inactivity. Others may have withdrawal limits. Always check the terms and conditions before opening an account.

How often is interest calculated and paid?

Interest is typically calculated daily and credited to your account monthly. The exact timing may vary by institution.

Can I withdraw money from a high interest savings account at any time?

Most high interest savings accounts allow for unlimited withdrawals, but some may have restrictions or limits. Check the terms of your specific account.