A high-interest savings account (HISA) is a CDIC-insured deposit account that pays materially more interest than a standard bank savings account — in 2026, the best HISAs in Canada pay 3.75–4.00% with no fees, no minimums, and no lock-in. Your money is accessible at any time. The interest is calculated daily and paid monthly.
Quick answer: A HISA works exactly like a savings account, but pays 80× more interest. Big 5 banks pay 0.01–0.05% on savings. Online banks pay 3.75–4.00%. Both are CDIC-insured. The difference is account choice, not risk.
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 — 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 — EQ Bank, Oaken, Motive — 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)
Example — $30,000 at EQ Bank (4.00%):
- Daily interest = $30,000 × (0.04 ÷ 365) = $3.29/day
- Monthly interest (30 days) = $98.63
- Annual interest = $1,200
Interest is credited to your account on the last day of each month. It begins accruing from the day your deposit settles.
CDIC Deposit Insurance — What It Covers
All major online banks in Canada are CDIC members. 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.
In 43 years of CDIC’s existence, no depositor has lost an insured deposit. CDIC member status is verifiable at cdic.ca.
Who Offers the Best HISAs in Canada?
| Institution | Rate | Fees | CDIC | Chequing | GICs |
|---|---|---|---|---|---|
| EQ Bank | 4.00% | None | Yes | Yes | Yes |
| Wealthsimple Cash | 4.00% | None | Yes | Limited | No |
| Oaken Financial | 3.90% | None | Yes | No | Yes |
| Motive Financial | 3.75% | None | Yes | No | Yes |
| Neo Financial | 3.25% | None | Yes | No | No |
| Tangerine | 0.25%* | None | Yes | Yes | Yes |
| Simplii Financial | 0.20%* | None | Yes | Yes | No |
*Promotional rates up to 5.25% for 5 months on new deposits.
EQ Bank — Best All-Around HISA
EQ Bank offers 4.00% on all deposit balances with no minimum and no fees. Its hybrid “Savings Plus 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 — Best for GIC Savers
Oaken Financial consistently offers some of the best GIC rates in Canada (often 0.10–0.25% above EQ Bank) alongside a competitive 3.90% HISA. It is a savings-and-GIC specialist — there is no chequing account or payment features. Owned by Home Bank, a CDIC member. Best suited for savers who use a Big 5 bank for daily banking and want Oaken for high-rate savings and GICs.
Tangerine — Best Online Bank With Full Banking
Tangerine is owned by Scotiabank and offers full-service banking: chequing, savings, credit cards, mortgages, and investments. Its everyday savings rate (0.25%) is low by online bank standards, but its promotional rate (5.25% for 5 months on new deposits) is the highest available for new money. 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 (2026) | Liquidity | CDIC Insured | Risk |
|---|---|---|---|---|
| Big 5 savings account | 0.01–0.05% | Immediate | Yes | None |
| Online HISA | 3.75–4.00% | 1–3 days | Yes | None |
| GIC (1-year) | 4.00–4.50% | Locked | Yes | None |
| Money market fund | 4.00–4.30% | 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 typically offers a higher net return.
Holding a HISA Inside a TFSA
Interest earned in a non-registered HISA is taxed at your full marginal rate. At a 40% marginal rate, 4.00% becomes 2.40% after tax. Inside a TFSA, the full 4.00% is retained — permanently.
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 at their full everyday rates. There is no rate discount for the registered wrapper.
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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