A high-interest savings account (HISA) is a CDIC-insured deposit account that pays meaningfully more interest than a standard Big 5 bank savings account, typically with no fees, no minimums, and no lock-in. Rates vary widely between providers and change frequently — always confirm the current rate before opening. Your money is accessible at any time. Interest is calculated daily and paid monthly.
Quick answer: A HISA works exactly like a savings account, but pays significantly more interest than a standard Big 5 savings account. Both are CDIC-insured. The difference is account choice, not risk — but always confirm the current rate at your chosen provider, since rates and promotions change often.
How a HISA Works
A HISA is a deposit account. You deposit money, the bank pays you interest, and you can withdraw at any time. The mechanics are straightforward:
- Open the account online — most online banks take 10–15 minutes to open via ID verification and a linked external bank account
- Transfer money in — electronic transfers from your existing bank account typically take 1–3 business days
- Earn daily interest — the bank calculates interest on your daily closing balance and credits it monthly
- Withdraw as needed — transfer out to your linked bank account; funds arrive in 1–3 business days
There are no account fees, no transaction limits on deposits or withdrawals (though some banks limit the number of free external transfers per month), and no minimum balance requirements at the best online HISAs.
How HISA Rates Are Set
HISA rates are variable and set by each institution. They broadly follow the Bank of Canada overnight rate, which stood at 2.25% as of the Bank of Canada’s September 2026 rate announcement — the rate at which Canadian banks lend to each other overnight. When the Bank of Canada raises its benchmark rate, online bank HISA rates tend to rise within days to weeks. When it cuts, HISA rates fall.
Big 5 banks respond to Bank of Canada rate changes asymmetrically: they raise savings rates slowly in tightening cycles and cut them immediately in easing cycles. Online banks that compete primarily on rate have stronger market incentives to keep rates competitive.
The Bank of Canada sets its target overnight rate eight times per year. Rate announcements are scheduled events you can track, though HISA rate changes are not guaranteed to follow each announcement.
HISA Interest Calculation
Most Canadian HISAs use daily interest accrual paid monthly. The formula:
Daily interest = Balance × (Annual rate ÷ 365)
Illustrative example — $30,000 at a 2.75% rate:
- Daily interest = $30,000 × (0.0275 ÷ 365) ≈ $2.26/day
- Monthly interest (30 days) ≈ $67.81
- Annual interest ≈ $825
This example uses EQ Bank’s confirmed September 2026 bonus rate (2.75%, with qualifying monthly direct deposits of $2,000+) for illustration. Substitute your own account’s current confirmed rate for an accurate estimate — interest is credited to your account on the last day of each month and begins accruing from the day your deposit settles.
CDIC Deposit Insurance — What It Covers
All major online banks in Canada are CDIC members, or hold client deposits at CDIC member institutions. CDIC (Canada Deposit Insurance Corporation) is a federal Crown corporation that insures eligible deposits up to $100,000 per depositor per eligible deposit category.
| Deposit Category | Coverage Limit |
|---|---|
| Deposits in your name | $100,000 |
| Joint deposits | $100,000 |
| RRSP deposits | $100,000 |
| RRIF deposits | $100,000 |
| TFSA deposits | $100,000 |
| FHSA deposits | $100,000 |
A depositor with $100,000 in a HISA, $100,000 in a joint account, $100,000 in an RRSP, and $100,000 in a TFSA at the same CDIC member institution would have all $400,000 fully covered because the funds fall into four separate eligible categories.
CDIC member status is verifiable at cdic.ca.
Who Offers the Best HISAs in Canada? (Confirmed September 2026)
Rates below were confirmed directly at each institution’s website where possible on September 16, 2026, or noted as requiring direct confirmation. HISA rates are variable and change often.
| Institution | Rate | Fees | CDIC | Chequing | GICs |
|---|---|---|---|---|---|
| EQ Bank Personal Account | 1.00% base / up to 2.75% with $2,000+/mo direct deposit | None | Yes | Yes | Yes |
| Wealthsimple Cash | Up to 2.25% (tiered) | None | Yes (via partner) | Limited | No |
| Oaken Financial | ~3.40% (confirm current rate) | None | Yes | No | Yes |
| Tangerine | ~0.30%–1.00% base by tier; confirm current promo | None | Yes | Yes | Yes |
| Simplii Financial | ~0.30%–1.50% base by tier; confirm current promo | None | Yes | Yes | No |
EQ Bank — Full-Featured HISA
EQ Bank’s Personal Account pays a 1.00% base rate, rising to 2.75% for customers with qualifying monthly direct deposits of $2,000 or more (confirmed at eqbank.ca, September 2026). Its Personal Account functions as both a savings account and a payment account — you can pay bills, send e-Transfers, and link it as a primary account. EQ Bank also offers RRSP, TFSA, and FHSA savings accounts and a full GIC product suite. It is owned by Equitable Bank, a Schedule I chartered bank under CDIC coverage.
Oaken Financial — GIC Specialist
Oaken Financial is a savings-and-GIC specialist with a savings rate confirmed at approximately 3.40% as of an August 2026 rate effective date (via third-party rate-tracking aggregators — confirm directly at oaken.com before opening). There is no chequing account or payment features. Owned by Home Bank, a CDIC member.
Tangerine — Full-Service Online Bank
Tangerine is owned by Scotiabank and offers full-service banking: chequing, savings, credit cards, mortgages, and investments. Its base savings rate is low by online-bank standards (confirm current tiered rate at tangerine.ca), but it periodically runs promotional rates for new deposits — 4.50% for 5 months was the confirmed offer as of September 16, 2026. Tangerine is best for savers who want a single online bank relationship and are willing to move new deposits in to capture promo periods.
HISA vs Other Savings Options
| Account Type | Rate | Liquidity | CDIC Insured | Risk |
|---|---|---|---|---|
| Big 5 savings account | Typically well under 1% — confirm current rate | Immediate | Yes | None |
| Online HISA | Varies by provider — confirm current rate | 1–3 days | Yes | None |
| GIC | Typically higher than HISA — confirm current rate | Locked | Yes | None |
| Money market fund | Confirm current rate | Same day | Not CDIC | Very low |
| Government bond ETF | Varies | T+1 | Not CDIC | Low–medium |
For savings you may need within 12 months, a HISA or promotional GIC is the appropriate vehicle. For savings beyond 12 months that you can commit to locking in, a GIC ladder can offer a higher net return — confirm current rates before choosing.
Holding a HISA Inside a TFSA
Interest earned in a non-registered HISA is taxed at your full marginal rate. Inside a TFSA, the full rate is retained — permanently, with no tax owed.
If you have unused TFSA contribution room, your emergency fund and short-term savings should be in a TFSA HISA. EQ Bank, Oaken, and Wealthsimple all offer TFSA savings accounts, generally at the same rate structure as their standard account — confirm the current TFSA rate at each provider.
How to Open a HISA in Canada
Opening a HISA at any online bank takes 10–20 minutes:
- Gather your ID — Canadian driver’s licence or passport; SIN for registered accounts
- Visit the bank’s website — all applications are online; no branch visit required
- Complete identity verification — most use automated ID scanning or live video verification
- Link your external bank account — provide your transit, institution, and account numbers from a void cheque or pre-authorized debit form
- Make your first deposit — initiate the transfer from your existing bank; funds arrive in 1–3 business days
Once set up, manage deposits and withdrawals entirely through the online bank’s app. Most allow free unlimited e-Transfers and unlimited deposits from linked accounts.
Related Articles
- Best HISA Rates Canada 2026
- Best High-Interest Savings Accounts Canada
- GIC vs HISA: Which Is Better?
- Best TFSA Savings Accounts Canada
- EQ Bank vs Tangerine vs Simplii
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