Looking for a HISA? 4 Must-Ask Questions That Aren’t About The Rate
Scotiabank’s HISA is turning heads with a sizzling promo rate right now, but that’s not the only reason to stop and take a look.
A high-interest savings account, or HISA, is a smart place to park cash you don’t want to invest but don’t want sitting idle, either.
Think: emergency fund, short-term savings goal, vacation money or cash you’re keeping ready for a future purchase.
But when it comes to comparing HISAs, it’s easy to get sucked in by the biggest number on the page: the interest rate.
That number matters, of course. But it isn’t the only thing that should guide your decision.
Scotiabank's high-interest savings account is one example. It has a promo rate that'll make you stop take a second look, but it's the whole package — ease of access, lack of monthly fees, and relationship-based earnings — that are worth sticking around for.
No matter which HISA you're considering, these questions will help you choose the one that's right for you.
1. How easy will it be to use my money?
A HISA is a great place for money you don’t need now, but may need soon, so access matters.
If you’re saving for emergencies or a near-term goal, you don’t want your cash locked out of reach, like it would be with a GIC.
Believe it or not, there are some HISAs out there that require you to give notice if you want to take money out. And even then it might take up to 30 days!
Make sure you understand the withdrawal process, whether there are limits on transactions and whether you’ll pay extra for certain types of withdrawals (like from ATMs).
⭐️ Scotiabank offers unlimited self-service transfers between accounts as a benefit of its HISA. Once you hit your savings goal (or if an unexpected expense arrives), it just takes a few button clicks to move the funds you need into a Scotiabank chequing account, ready for spending.
2. How high are the monthly fees?
Fees are silent pests that nibble away at your earned interest.
You did the hard work of earning and saving the money, then fees come in and take a chunk. Rude.
Fees and service charges go by many names, so be sure you compare monthly account fees, transaction fees, transfer fees and minimum-balance rules — and feel good about paying them over the long-term.
⭐️ The Scotia High Interest Savings Account has no monthly account fee, which means one less thing to worry about as you grow your savings. Of course, no monthly fee doesn’t necessarily mean zero fees ever. Things like in-branch transactions or paper statements may trigger fees. But as long as you’re comfortable managing the account online, the chances of an extra charge are low.
3. Does the account complement how I bank?
Some people like to draw a firm boundary between their savings and their everyday spending money. As in, “chequing account at this bank, and savings account at that other bank over there.”
Others prefer to have everything in one place because it’s easier to manage if something unexpected happens. If that’s you, a relationship-based savings account may be worth a closer look.
⭐️ Scotiabank does something a little different with its HISA. Rather than dropping you down to almost no interest after the promo, they put the power in your hands. The ongoing interest rate (so, the rate you’ll earn after the intro period ends) is determined by your Total Relationship Balance — which means the sum of every dollar you hold in any eligible Scotiabank chequing, savings or investment account.
A higher total balance means you earn a higher rate, automatically.
This setup is tailor made to reward existing banking and investment customers with a boosted savings rate that’s much higher than the ongoing rate at other Big Banks. It may also be a great fit for someone who needs all three types of accounts, but is still working on building up their cash savings balance.
What could this look like in real dollars?
Example customer | Total Relationship Balance (all accounts) | Scotiabank HISA Balance | Interest Rate | First-Year Interest Earned |
|---|---|---|---|---|
🤵 High-Balance Harry | $500,436 | $100,000 | 5.00% during promo and 2.20% afterward | $2,890 |
👷 Typical-Saver Terry | $22,943 | $15,000 | 4.30% during promo and 1.50% afterward | $329 |
For illustration purpuses only. The table assumes balances stay the same for one year, the customer qualifies for the 90-day welcome promotional rate, rates don’t change, and interest is estimated using simple daily interest over a 365-day year. Actual earnings may vary.
4. Will it help me reach my savings goal?
The features that will make a HISA right for you will depend in part on why you’re saving.
If you’re building an emergency fund, you may care most about easy access and no monthly fees.
If you’re saving for a down payment, you may be more focused on steady interest and keeping the money separate from daily spending.
If you already have several accounts with Scotiabank, the relationship-based model they use to determine HISA rates might be a short-cut to faster growth.
At the end of the day, you want a HISA that still makes sense once you factor in access, fees, conditions and how (much) you actually save.
And just one more: How long will the interest rate last?
We've shown you all the reasons to look beyond the rate when shopping for a HISA. But there is one rate-related question you must know the answer to before moving your money.
How long does this rate last?
Some savings accounts advertise a promotional rate that only applies for a limited time. Others offer an ongoing rate, a tiered rate or a rate that depends on whether you meet certain eligibility requirements.
For example, the Scotia High Interest Savings Account currently offers a scroll-stopping promotional rate of up to 5% for the first three months. After that, the interest rate is based on a customer’s combined daily closing balances in eligible Scotiabank accounts.
Depending on how much money you keep with the bank, you could earn up to 2.2% on an ongoing basis. A.K.A indefinitely.
Last time we checked, the next highest ongoing rate offered by a Big Bank was 0.55%. That's a huge difference that could mean more free money in your pocket.