Canada's 21 Best Online Savings Accounts for 2024

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ALSO CONSIDER: Best high-interest savings accounts | Best high-interest TFSAs | Best high-interest RRSPs | Best savings accounts

Online savings accounts are online bank accounts that earn interest, offered by virtual banks and online-only financial institutions in Canada. Account-holders manage and access their money through digital banking, mobile apps and by phone.

The best online HISAs in Canada
The best online TFSA HISAs in Canada
The best online RRSP HISAs in Canada
Summary of our selections
Things to know about online savings accounts

Best Savings Accounts in Canada from Our Partners

Bank Account	Interest Rate	Monthly Fee
Learn more Simplii Financial™ High Interest Savings Account	6.00% Promotional rate	$0	Apply Now Learn more
Learn more Scotiabank MomentumPLUS Savings Account	Up to 6.05%* Promotional Rate	$0	Apply Now Learn more
Learn more RBC High Interest eSavings Account	5.50%* Promotional rate	$0	Apply Now Learn more

The best online savings accounts:

The best online HISAs in Canada

Simplii Financial™ High Interest Savings Account

Interest Rate

6.00%

New Client Offer: Earn 6.00% interest for 5 months on your first Simplii Financial High Interest Savings Account. Limits apply.

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

Apply Now

Simplii’s no-fee HISA gives account holders access to CIBC ATMs in Canada.
Simplii Financial is an online bank owned by CIBC that offers savings and chequing accounts, credit cards, mortgages, loans, lines of credit, registered plans, GICs, and mutual fund accounts. Read our review of Simplii Financial for more information.

0.40% to 5.50% interest rate depending on account balance.
No monthly fee.
Manage your money through online banking and a mobile app.
Easily set up automatic deposits.
HISA account holders can open a no-fee chequing account to access money from any CIBC ATM in Canada without a fee.
No transaction or service fees.
No minimum balance.
Immediate access to your money through withdrawals, Interac e-Transfer, transfers to linked accounts, and more.
Eligible for CDIC deposit insurance.

Manulife Bank Advantage Account

Interest Rate

Up to 5.75%

The 5.75% promotional rate is for new deposits to a new personal, non-registered Advantage account. The promotional interest rate is made up of the regular posted annual variable interest rate of 2.85% and the variable annual promotional rate of 2.90%.
Bonus Offer

N/A
Monthly Fee

$0

The no-fee Advantage account offers high-interest savings and a generous promotional rate for new investors.
Manulife Bank has provided Canadians with branchless banking since 1993. Services include chequing and savings, credit cards, mortgages, loans, and investment accounts.

Interest is calculated daily and paid monthly.
No monthly fee.
Manage your money by phone, through online banking and a mobile app.
There are no fees to open an account, make deposits, or withdraw funds.
RRSPs, TFSAs and RRIFs are also available.
Deposits and withdrawals are free.
No minimum balance is required.
Eligible for CDIC deposit insurance.

Tangerine Savings Account

Interest Rate

5.75%*

0.70% regular interest rate.

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

Tangerine’s promotional interest rate will earn you a high rate of return for five months. Pair it with the virtual bank’s no-fee chequing account, credit card, registered accounts or a GIC to maximize your financial goals.
Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.

0.70% regular interest rate.
No monthly fee.
Automated savings program available.
Unlimited free self-serve transactions per month.
Service fees are limited to a $45 charge for non-sufficient funds.
No minimum balance.
Immediate access to your money through withdrawals, transfers to linked accounts, and more.
Eligible for CDIC deposit insurance.

KOHO Spending and Savings Account

Interest Rate

Up to 5.00%

Interest Rate varies by selected subscription plan. Easy Plan: 3%, Essential Plan: 5%, Extra Plan: 5%, Everything Plan: 5%.

No minimum balance required
Bonus Offer

30-day free trial

All KOHO subscription plans come with a free 30 day trial.
Monthly Fee

$0-$19

Monthly Fee varies by selected subscription plan. Easy Plan: $0, Essential Plan: $4, Extra Plan: $9, Everything Plan: $19.

Apply Now

Why we like it

This hybrid chequing-savings account earns up to 5.00% interest on savings and up to 5.00% cash back on purchases depending on the subscription plan selected.
KOHO is a virtual bank that also offers cash back prepaid Mastercards cards

Interest Rate varies by selected subscription plan. Easy Plan: 3%, Essential Plan: 5%, Extra Plan: 5%, Everything Plan: 5%.
Monthly Fee varies by selected subscription plan. Easy Plan: $0, Essential Plan: $4, Extra Plan: $9, Everything Plan: $19.
The account comes with the KOHO prepaid Mastercard that earns up to 5% instant cash back on spending (depending on the selected subscription plan).
The mobile app comes with spending pattern analysis, budgeting, automated savings and a RoundUp! feature that helps you save money on every purchase.
Free and unlimited transactions, including e-Transfers and domestic ATM withdrawals.
No transaction or service fees.
No minimum balance.
Immediate access to your money through free withdrawals, e-Transfers, and more.
Eligible for up to $100k CDIC deposit insurance.

Motive Savvy Savings Account

Interest Rate

4.10%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

Earn interest at a competitive rate on this no-fee and no-minimum balance HISA.
Motive Financial is an online division of Canadian Western Bank and offers chequing and savings accounts, registered plans and GICs.

4.10% interest for balances under $5,000,000, and 0.50% interest for balances $5,000,000.01 and over.
Interest is calculated on the daily closing balance at the applicable rate tier and paid on the last day of the month, for the period beginning on the last day of the previous month and ending on the second last day of the month.
No monthly fee.
No minimum balance is required.
Unlimited transfers between accounts.
Free deposits.
Withdrawals can be deposited into a Motive Savings or Motive Chequing account, a no-fee chequing account that earns interest.
Manage your money by phone, through online banking and a mobile app.
2 free transactions per month.
Service fees are listed online.
Eligible for CDIC deposit insurance.
Motive Financial products are not available to Québec residents.

Neo Money™ Account

Interest Rate

4.00%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

Apply Now

Why we like it

Neo offers a digital-first banking experience and a fee-free account with one of the highest interest rates available in Canada.
Comes with a prepaid Neo Money™ Card that earns an average 5%+ unlimited cash back at thousands of local and national Neo partners.

One account to spend, save and earn 4.00% interest.
No fees, 4.00% interest rate as of December 4, 2023 (not a promotional rate; Savings interest rate is calculated daily on the closing balance and paid monthly).
Earn up to 225x more than at traditional banks (0.05% is the rate at most banks for high interest savings accounts, with 0% on most daily everyday chequing accounts – unlimited transaction accounts are typically $29.99 per month, whereas Neo is free).
Make bill payments, send and receive Interac e-Transfers®, and make bank to bank transfers to and from existing bank account – all with no monthly fees or minimum balances and unlimited free transactions.
Available Canada-wide (with the exception of Quebec, coming soon).
Manage everything from the phone app, whenever and wherever. Desktop/web banking is also available.
Much like any bank account at a traditional bank, the Neo Money™ Account is eligible for CDIC deposit protection, and provided by Concentra Bank, a CDIC member institution. Deposits held in Neo Money™ Accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor.

CI Direct Investing HISA

Interest Rate

4.00%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

CI Direct Investing’s HISA comes with no fees or restrictions for withdrawals, no minimum balance requirements, and a competitive interest rate.
CI Direct Investing is a registered business name of WealthBar Financial Services Inc. or WealthBar. The online wealth management firm provides managed investment portfolios, personalized financial advice and planning.

Unlimited no fees deposits and withdrawals with no minimum balance restrictions.
CI Direct Investing offers low investment management fees and no-fee saving accounts so you can put more of your money to work for you.
Every dollar in your investment and savings accounts can help you unlock lower investment fees. Refer to their fee calculator.
Easy-to-follow app for saving, investing and unlimited advice after setting up an account in minutes.
Switch stress-free as CI Direct Investing covers the cost your financial institution may charge (up to $150) when you transfer $25,000 or more. Plus, if you’re not completely satisfied, we’ll waive our transfer-out fees.
The Canadian Investor Protection Fund (“CIPF”) provides protection for your accounts in case of insolvency for up to $1 million per account type.

WealthONE High Interest Savings Account

Interest Rate

4.00%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This HISA offers a competitive rate of interest.
WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.

No monthly fee.
Automated savings program available. HISA can be included in TFSAs, RRSPs, RRIF or other registered plans.
Free unlimited transactions to/from your linked account, and ten free bill payment transactions per month.
Service fees are listed online and include a $1.50 charge to send an Interac e-Transfer®.
No minimum balance.
Access your money immediately through transfers to linked accounts, Interac e-Transfer, and more.
Eligible for CDIC deposit insurance.

EQ Bank Personal Account

Interest Rate

4.00%*

Customers who set up direct deposit on their EQ Bank account will also get a bonus interest on recurring pre-authorized debits. Here’s how to get the bonus interest: (a) Set up $500/month or more in either direct deposit for your pay or recurring pre-authorized debits. (b) Applies to your Personal Account, Joint Account and EQ Bank Card¹ balance. (c) Once set it up, they’ll be eligible for the increased rate of 4.00%* for 12 months! (d) Those who already set up the above automatically qualify for bonus interest!

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

Apply Now

Why we like it

EQ Bank’s Personal Account is the digital-first bank’s flexible hybrid chequing and savings account. It features a high interest rate, no monthly fees, and free and unlimited transfers.
The bank also offers joint accounts, US dollar accounts, TFSAs, RRSPs, and GICs.

Customers who set up direct deposit on their EQ Bank account will also get a bonus interest on recurring pre-authorized debits.
Here’s how to get the bonus interest: (a) Set up $500/month or more in either direct deposit for your pay or recurring pre-authorized debits. (b) Applies to your Personal Account, Joint Account and EQ Bank Card¹ balance. (c) Once set it up, they’ll be eligible for the increased rate of 4.00%* for 12 months! (d) Those who already set up the above automatically qualify for bonus interest!
4.00% interest rate*.
No monthly fee.
This hybrid account gives you the benefits of savings with the flexibility of chequing.
Mobile Cheque Deposit is available through the EQ Bank mobile app.
Zero monthly banking fees.
No transaction or service fees. EQ Bank does not charge account fees, fees for sending or receiving Interac e-Transfers®, fees for bill payments, overdraft fees, or dormant account fees.
No minimum balance, but a $200,000 maximum balance.
Access your money immediately through the mobile app and online banking website, where you can deposit or transfer funds using Interac e-Transfers® or Electronic Funds Transfer (EFT) to linked accounts.
Eligible for CDIC deposit insurance.
As of December 2022, EQ Bank is available to Québec residents.
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.

The best online TFSA HISAs in Canada

Tangerine Tax-Free Savings Account

Interest Rate

5.75%*

0.70% regular interest rate.

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

This flexible, no-fee TFSA comes with a generous promotional offer that will earn you cash and a high rate of return for five months.
Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.

0.70% regular interest rate.
No monthly fee.
Automated savings program available.
Manage your money by phone, through online banking and a mobile app.
Other Tangerine TFSA investment options include Tax-Free GICs, available in 90-day to 5-year terms, and investment accounts and portfolios.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
No minimum balance is required.
Eligible for CDIC deposit insurance.

Motive Financial TFSA Savings Account

Interest Rate

4.10%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

Earn interest at a competitive rate on this no-fee and no-minimum balance high-interest TFSA.
Motive Financial is an online division of Canadian Western Bank and offers chequing and savings accounts, registered plans and GICs.

4.10% variable interest rate. Interest is calculated on the daily closing balance at the applicable rate tier and paid on the last day of the month, for the period beginning on the last day of the previous month and ending on the second last day of the month.
No monthly fee.
Withdrawals can be deposited into a Motive Savings or Motive Chequing account, a no-fee chequing account that earns 0.15% interest.
Manage your money by phone, through online banking and a mobile app.
Other TFSA investment options include the Motive® TFSA GIC, available in one to 10-year terms.
Service fees are listed online.
Free TFSA withdrawals and deposits.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
$50 fee to close the account within one year of opening.
No minimum balance is required.
Eligible for CDIC deposit insurance.
Motive Financial products are not available to Québec residents.

WealthONE Tax-Free Savings Account

Interest Rate

4.00%

$1,000 opening deposit required
Bonus Offer

N/A
Monthly Fee

$0

Use this no-fee TFSA to earn tax-free interest in an easy, flexible way.
WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.

No monthly fee.
Automated savings program available. Manage your money by phone, through online banking and a mobile app.
Other Wealth One TFSA investment options include guaranteed investment certificates, available in 6-month to 5-year terms, and investment accounts and portfolios through Smart Money Invest.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
$100 fee to close your TFSA account.
No minimum balance is required.
Eligible for CDIC deposit insurance.

Canadian Tire Tax Free® High Interest Savings Account

Interest Rate

3.70%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This online-only high-interest TFSA features all the benefits of Canadian Tire’s ‘Money Magnet’ HISA, with tax-free advantages.
Canadian Tire Bank (CTB) is a federally chartered virtual bank that operates the Triangle Rewards Program and offers credit cards, savings accounts, and GICs.

3.70% variable interest rate. Interest is calculated daily, based on the closing balance of the account, and paid monthly.
No monthly fee.
Automatic savings plan available.
Manage your money by phone or through online banking.
Other Canadian Tire TFSA investment options include Tax-Free GICs, available in one to five-year terms.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
No minimum balance.
Eligible for CDIC deposit insurance.
This account is not available to Québec residents.

Hubert Financial High Interest Tax-free Savings Account

Interest Rate

3.65%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This high-interest and no-fee TFSA gives you access to term deposits and VirtualWealth online investment accounts.
Hubert Financial is the online division of Sunova Credit Union and offers a high-interest savings account, term deposits, registered plans, a credit card and VirtualWealth investing.

3.65% variable interest rate. Interest is calculated daily, paid monthly.
No monthly fee.
To open this account, you must become a member of Sunova Credit Union, which requires a $5 share. Your share is considered an investment and is fully refundable should you cancel your membership.
Use this TFSA to save $1,000 and open a higher rate tax-free one-year term deposit that is redeemable quarterly.
Manage your money by phone, through online banking and a mobile app.
Other Hubert TFSA investment options include TFSA term deposits, available in one-year quarterly redeemable terms to five-year non-redeemable terms, and VirtualWealth online investment accounts.
No transaction or service fees, except for wire transfers and a $25 fee for accounts that are inactive for six months with a balance under $1,000.
No minimum balance is required.
Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
Hubert Financial is not available to Québec residents.Hubert’s Happy Savings TFSA HISA

Ideal Savings TFSA

Interest Rate

3.65%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

Ideal savings is a high-interest savings account with no maintenance fee account and a 100% deposit guaranteed.
Ideal Savings is an online division of Carpathia Credit Union Limited and offers high-interest savings, a U.S. dollar savings account, GICs and tax-free savings accounts.

There’s no minimum balance required to start earning with this account.
Interest will be calculated on the closing daily balance and paid out at the end of each month.
Keep track of your funds through online banking and maintain peace of mind.
24/7 accessibility helps you withdraw your funds without penalty at any time or pay your bills online.
Three free Automatic Fund Transfers (AFT) per month
No monthly maintenance fee on the account makes it a smart choice for everyday savings and a resourceful place to park funds you’re saving for the short term while contemplating your next move.
All funds on deposit with Ideal Savings are guaranteed without limit by the Deposit Guarantee Corporation of Manitoba.

The best online RRSP HISAs in Canada

Tangerine RSP Savings Account

Interest Rate

5.75%*

Regular interest rate: 0.70%, no minimum balance.

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

This flexible, no-fee RRSP comes with a generous promotional offer that will earn you cash and a high rate of return for five months.
Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.

No monthly fee.
Automated savings program available.
Manage your money by phone, through online banking and a mobile app.
Other Tangerine RSP investment options include RSP GICs, available in 90-day to 5-year terms, and investment accounts and portfolios.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your RRSP to another bank (transferring another in is free).
No minimum balance is required.
Eligible for CDIC deposit insurance.

WealthONE RRSP Savings Account

Interest Rate

4.00%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This RRSP savings account features a competitive interest rate and comes with access to a digital investing service with professionally managed, low-cost investment portfolios.
WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.

No monthly fee.
Automated savings program available.
Manage your money by phone, through online banking and a mobile app.
Other Wealth One RRSP investment options include spousal RRSPs, guaranteed investment certificates, available in 6-month to 5-year terms, and investment accounts and portfolios through Smart Money Invest.
TFSAs and RRIFs are also available.
Service fees are listed online.
$50 fee to transfer your RRSP to another bank (transferring in another RRSP is free).
$100 fee to close your RRSP account.
No minimum balance is required.
Eligible for CDIC deposit insurance.

Hubert Financial Happy Savings RRSP

Interest Rate

3.65%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This high-interest, online-only RRSP account provides you with access to investment portfolios and term deposits, including one-year terms redeemable quarterly.
Hubert Financial is the online division of Sunova Credit Union and offers a high-interest savings account, term deposits, registered plans, a credit card and VirtualWealth investing.

Interest is calculated daily, paid monthly.
No monthly fee.
To open this account, you must become a member of Sunova Credit Union, which requires a $5 share. Your share is considered an investment and is fully refundable should you cancel your membership.
Use this RRSP to save $1,000 and open a higher rate tax-free one-year term deposit that is redeemable quarterly.
Manage your money by phone, through online banking and a mobile app.
Other Hubert RRSP investment options include spousal RRSPs, RRSP term deposits, available in one-year quarterly redeemable terms to five-year non-redeemable terms, and VirtualWealth online investment accounts.
TFSAs and RRIFs are also available.
No transaction or service fees, except for wire transfers and a $25 fee for accounts that are inactive for six months with a balance under $1,000.
No minimum balance is required.
Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
Hubert Financial is not available to Québec residents.

Achieva Financial RRSP Savings Account

Interest Rate

3.60%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This online-only high-interest RRSP features a competitive rate and the ability to set up spousal RRSPs.
AcceleRate Financial is an online division of Manitoba’s Access Credit Union and offers savings accounts, GICs, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).

3.60% variable interest rate. Interest is calculated on the daily closing balance and added to the principal on the last day of each month.
No monthly fee.
To open this account, you must agree to become a member of Cambrian Credit Union Limited, which requires a $5 share. Your share is considered an investment and is fully refundable should you decide to cancel your membership.
Earn $1 per month when you choose electronic documents.
Ability to set up recurring contributions.
Manage your money by phone, through online banking and a mobile app.
Other Achieva RRSP investment options include spousal RRSPs, RRSP GICS, available in one to five-year terms, and Qtrade Direct Investing online investment accounts.
TFSAs, RRIFs, Locked-In Retirement Accounts (LIRAs) and Life Income Funds (LIFs) are also available.
Service fees are listed online.
$15 fee to close the account within six months of opening.
No minimum balance is required.
Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.

MAXA Financial RRSP Savings

Interest Rate

3.60%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This High-Interest Savings Account offers competitive rates, the convenience of no minimum balance and added savings through zero monthly fee.
MAXA Financial is an operating division of Westoba Credit Union Ltd. and offers a high-interest savings account, GICs, and TFSA, RRSP and RRIF products.

The High-Interest Savings Account offers exceptional rates with the convenience and flexibility to make meeting your financial goals easy.
Deposits are guaranteed 100% by Deposit Guarantee Corporation of Manitoba.
No minimum balance is required.
No monthly maintenance fee.
Interest is calculated on the daily closing balance and paid monthly.
MAXA MemberCard for ATM and Point-of-Sale transactions.
Account information is available online or by phone.
Contributions can be easily transferred from your MAXA High-Interest Savings account online or by phone.
You can set up recurring transfers from your MAXA High-Interest Savings account online or by phone.

Outlook Financial RRSP High-Interest Savings Account

Interest Rate

3.60%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This easy-to-use high-interest RRSP savings account offers a competitive interest rate and flexible options for new savers.
Outlook Financial is an online division of Assiniboine Credit Union and offers savings accounts, GICS, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).

3.60% variable interest rate. Interest is calculated daily and paid back monthly.
No monthly fee.
To open this account, you must agree to become a member of Assiniboine Credit Union membership, which requires a $5 share. Your share is considered an investment and is fully refundable should you decide to cancel your membership.
Manage your money by phone or through online banking.
Start saving to reach the $1,000 minimum needed to invest in an RRSP Fixed GIC, which may earn higher rates.
Other Outlook Financial RRSP investment options include spousal RRSPs and guaranteed investment certificates, available in one to five-year terms.
TFSAs and RRIFs are also available.
Service fees are listed online.
$50 fee to transfer your RRSP to another bank (transferring in another RRSP is free).
$15 fee to close the account within three months of opening.
No minimum balance is required.
Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.

Methodology

NerdWallet Canada selects the best online savings accounts based on several criteria including annual percentage yields, minimum balances, fees, digital experience and more. Only savings accounts from online-only banks that are available in more than one province are considered for this list.

Things to know about online savings accounts

By Barry Choi

Opening a savings account online is nothing new since many traditional financial institutions offer digital banking. But online-only banks are far from traditional, and the savings accounts they offer are different in some important ways. Understanding the difference matters since it can mean more money in your account.

What is an online savings account?

When Canadians talk about online savings accounts, they’re usually referring to savings accounts offered by online-only banks. These virtual banks were introduced to the Canadian market more than two decades ago and were appealing due to the high interest rates that they offered.

These days, there are more digital banks in Canada and interest rates have dropped, but the debate about which online savings account is the best continues.

Basically, an online savings account is just a bank account that you can only access digitally. As in, the bank has no physical branches. Almost all transactions and customer service requests are done online or by phone.

The appeal of online savings accounts is the much lower fees (usually no fees). Since there are fewer overhead costs for these banks, the savings are passed on to consumers in the form of higher interest rates and fewer fees.

» LEARN: How free and no-fee bank accounts can help save you money

Types of online savings accounts

The types of online savings accounts available will depend on which financial institution you’re using. Generally speaking, the following are the most common types of accounts:

High-interest savings account (HISA), personal account
HISA, joint account
Hybrid accounts, which combine chequing account privileges with a HISA interest rate
TFSA savings account
RRSP savings account
US dollar savings account

» DISCOVER: How to make a joint bank account work for you

What to expect from online savings accounts

Interest rates

Online savings account interest rates can fluctuate quite a bit as they’re tied to the Bank of Canada’s overnight rate. In the last few years, interest rates for most online bank accounts have fluctuated between 1% to 3%. While that may not seem like a high interest rate, it’s significantly higher than the standard rate offered by bricks-and-mortar savings accounts.

Online savings accounts may offer an even higher promotional interest rate for certain customers, which will be applied for a limited time.

The interest you earn is usually presented as an annual percentage yield, but the interest is usually calculated daily and paid back into the account monthly. This compounding interest will help your savings grow faster.

Just remember, interest rates are subject to change without notice, so make sure to check your account statements so you know how much you’re actually earning.

» MORE: How does compound interest work?

What you get with an online-only bank account

The features offered by your online-only bank will differ depending on where you have things set up, but it’s common to see the following:

No monthly fees.
No minimum balance requirement.
Free bill payments.
Free electronic fund transfers.
International transfers.
The ability to direct deposit.
The ability to link your account to a bricks-and-mortar account.

Note that not all of these features may be available with an online savings account. But some digital banks also offer chequing accounts, physical cheques, guaranteed investment certificates, credit cards, and debit cards.

What you don’t get with an online-only bank account

Since digital banks operate almost exclusively online, you likely won’t get anything that would normally happen in-person at a bricks-and-mortar location such as:

Face-to-face customer service.
Immediate access to cash if you don’t have a debit card.
Immediate access to bank drafts.
A safety deposit box.
Access to investment advisors.
Access to a wide range of banking services.
Currency exchange services.

Examples of online-only financial institutions

When looking for the best online savings accounts, you’ll get a lot of choices in Canada. Some of the most popular online-only financial institutions include:

Alterna Bank
Canadian Tire Financial
EQ Bank
KOHO
Motive Financial
motusbank
Neo
Oaken Financial
PC Financial
Simplii Financial
Tangerine

Online-only banks offer similar services and interest rates, but specific features vary. The main point is that they usually pay more interest than brick-and-mortar banks.

Online-only banks that are a division of a traditional bank

What some people may not realize is that many traditional banks own online-only banks. For example:

Scotiabank owns Tangerine
Canadian Imperial Bank of Commerce owns Simplii Financial
Median Credit Union owns Motusbank
Home Trust owns Oaken Financial
Laurentian Bank of Canada owns LBC Digital

Even though a major financial institutions own digital banks, they operate as separate entities. That said, they do share resources at times. For example, if you’re a Tangerine customer, you can use Scotiabank ATMs to access cash immediately. However, you wouldn’t be able to walk into a Scotiabank branch to get customer service.

While it may seem odd for traditional banks to also own online-only banks, it’s a smart move. Online banks have built up a huge customer base over the years. Many of these people use online banks exclusively. By acquiring or creating an online bank, traditional banks get access to these customers. They can send them targeted offers or create new products based on collected data.

» Ready for a new bank?: Here’s how to make the switch

How to choose an online savings account

Choosing the best online savings account can be difficult since they can share many similarities. That said, there are a few things to look out for:

The interest rate. Generally speaking, most people will sign up for whichever online savings account offers the best interest rate. They’re also not afraid to transfer their money to another bank if there’s a better offer.
Bonus offer interest rate. Some online-only banks offer a higher interest rate during a promotional period.
Debit card availability. Some customers prefer to go with an online bank that gives you a debit card so you can access cash from an ATM as you need it.
Brand name and reliability. Although all online banks are safe and secure with some sort of deposit insurance, some people will prefer to use an online-only bank that’s owned by a bricks-and-mortar financial institution.
Referral bonus. Some online savings account providers may give you a bonus when you sign up with a referral link. You could then refer your friends where you’d both get a bonus.

How to open an online savings account

Opening an online savings account is easy. You just need to meet the following eligibility requirements before you get started:

You must be a Canadian resident.
You must be the age of majority in the province or territory where you reside.
You must have a Social Insurance Number.

Some online banks will also ask you to verify your identity by providing an image of your government-issued ID.

With all of that in hand, you would go to the website of the online bank you want to join to set up your accounts. Note that it could take a few days to verify all of your information. It also takes a few days if you’re going to link any external bank accounts to your new online bank account.

How to use an online savings account

How you use your online savings account will depend on your personal preferences. Some people will choose to maintain just one savings account, while others may open multiple bank accounts — within the same bank or at different banks. They might have different accounts for a home down payment, vacations, and an emergency fund, for example.

If you need to withdraw funds from your online savings account, or move it between bank accounts, it should be fairly easy to do via the website or app, just make sure you’re aware of any transaction limits or fees that may be charged.

» Make the most of what you earn: How to save money in 8 easy steps

Online savings accounts pay more interest compared to brick-and-mortar savings accounts. Plus, online banks typically charge no fees, so there’s no reason not to sign up. Think of online banks as a complement to your existing bank account. In some cases, it could be a suitable replacement.

When referring to an online savings account or high interest savings accounts, most Canadians will associate them with virtual banks.

Savings accounts available at brick-and-mortar financial institutions are just another type of bank account available to you.

» MORE: Canada’s Best High-Interest Savings Accounts for 2024

Online-only banking is very similar to an online banking account with a bricks-and-mortar financial institution. The major difference is that online-only banks have no physical branches, though some online-only banks may have a few physical offices.

Online-only banking still allows you to accept direct deposits, pay bills, and transfer funds. You just need to do it online on your computer or via a mobile device.

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Best High-Interest Savings Accounts in Canada for 2024

Compare top interest rates and discover the best no-fee high-interest savings accounts (HISAs) in Canada.

Clay Jarvis

Siddhi Bagwe

Canada’s 21 Best Online Savings Accounts for 2024

Simplii Financial™ High Interest Savings Account

Best Savings Accounts in Canada from Our Partners

Bank Account

Interest Rate

Monthly Fee

Simplii Financial™ High Interest Savings Account

Scotiabank MomentumPLUS Savings Account

RBC High Interest eSavings Account

The best online HISAs in Canada

Simplii Financial™ High Interest Savings Account

Manulife Bank Advantage Account

Tangerine Savings Account

KOHO Spending and Savings Account

Motive Savvy Savings Account

Neo Money™ Account

CI Direct Investing HISA

WealthONE High Interest Savings Account

EQ Bank Personal Account

The best online TFSA HISAs in Canada

Tangerine Tax-Free Savings Account

Motive Financial TFSA Savings Account

WealthONE Tax-Free Savings Account

Canadian Tire Tax Free® High Interest Savings Account

Hubert Financial High Interest Tax-free Savings Account

Ideal Savings TFSA

The best online RRSP HISAs in Canada

Tangerine RSP Savings Account

WealthONE RRSP Savings Account

Hubert Financial Happy Savings RRSP

Achieva Financial RRSP Savings Account

MAXA Financial RRSP Savings

Outlook Financial RRSP High-Interest Savings Account

Simplii Financial™ High Interest Savings Account

Summary of our selections

Methodology

Things to know about online savings accounts

By Barry Choi

What is an online savings account?

Types of online savings accounts

What to expect from online savings accounts

Interest rates

What you get with an online-only bank account

What you don’t get with an online-only bank account

Examples of online-only financial institutions

Online-only banks that are a division of a traditional bank

How to choose an online savings account

How to open an online savings account

How to use an online savings account

Frequently asked questions about online savings accounts

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