- CDIC defines a HISA as a savings account that can pay a higher rate than a regular savings account without locking your money in for a term.
- Many headline rates are promotions: as of October 2026 in our data, the BMO Savings Amplifier Account pays 5.00% for 120 days, then 0.50%.
- CDIC covers eligible deposits up to $100,000 per category, per member institution; HISA ETFs and HISA mutual funds aren’t covered.
- Interest outside a TFSA or RRSP is taxable every year, and the CRA says to report it even if you don’t get a T5 slip, which may not be issued under $50.
Checked November 2026
What a high-interest savings account is
CDIC describes a HISA as a savings account that can offer a higher interest rate than a regular savings account. Unlike a GIC, you don’t lock in for a set term, so you can move money in and out as you need it.
That makes a HISA a common home for an emergency fund or money you’ll need within a few years. FCAC suggests keeping emergency savings in an account separate from your day-to-day account, with no or low transaction fees, penalty-free withdrawals and interest.
How interest is calculated and paid
Almost every account in our data calculates interest daily on your closing balance and pays it into the account monthly. Rates are quoted as annual rates. Each day the bank works out one day’s share of that annual rate on what you hold, then adds up the month and deposits it.
Here’s a simple example. $10,000 at 2.5% earns about $250 over a year, or roughly $0.68 a day. Once each monthly payment lands, it starts earning interest too, so you end the year slightly ahead of $250 if the rate stays put.
Savings rates are variable. Banks can change them at any time, so a rate you see today isn’t a promise for next year.
Some accounts pay more on bigger balances. The Neo Savings Account pays 2.00% under $5,000, 2.50% from $5,000 to $19,999.99 and 2.75% from $20,000, as of October 2026 in our data. Others pay more if you give notice before you withdraw: the EQ Bank Notice Savings Account pays 2.35% with 10-day notice and 2.75% with 30-day notice.
Promo rates vs regular rates
The big number in a bank’s ad is often a promotional rate that lasts a few months. After that, the account drops to its regular rate, which can be a fraction of the promo. These examples are as of October 2026 in our data.
| Account | Promo rate | Promo length | Regular rate after |
|---|---|---|---|
| BMO Savings Amplifier Account | 5.00% | 120 days | 0.50% |
| Tangerine Savings Account | 4.50% | 5 months | 0.70% |
| Simplii Financial High Interest Savings Account | 5.00% | 5 months | Up to 1.00% |
| CIBC TFSA Tax Advantage Savings Account | 3% | 4 months | 2.25% |
Rates change often. Check the bank’s offer terms before you move money.
Promos come with rules, so read the terms. Tangerine’s offer is for new clients who open the account within 60 days of getting a client number, and it applies to deposits for 153 days, up to $1,000,000. Simplii says its 5.00% applies to eligible deposits up to $100,000, and the offer ends January 31, 2027, and existing clients qualify only in their first 60 days. The BMO account needs an eligible BMO chequing account.
Some offers pay the bonus only on new money: deposits you add during the offer, not the balance you already had. If the terms say eligible deposits, find out exactly which deposits qualify before you move money.
Some accounts skip promos and pay one steady rate. The Everyday Growth Account from Haventree Bank pays 2.5% in our data, with no promo period. If you don’t want to move money every few months, a steady rate can beat a short promo over a full year.
Registered and non-registered savings accounts
A regular HISA is non-registered: its interest is taxable each year. Many banks also offer the same kind of account inside a registered plan.
- TFSA savings account: contributions aren’t deductible, but the interest is generally tax-free, even when you withdraw. You must be 18 or older, and the 2026 TFSA dollar limit is $7,000.
- RRSP savings account: deductible contributions reduce your tax, and interest isn’t taxed while it stays in the plan. You pay tax when you take money out.
- FHSA savings account: holds cash for a first home inside a first home savings account.
Deposit insurance: CDIC, AMF and FSRA
CDIC insures eligible deposits at member institutions up to $100,000, including principal and interest, in each category. Categories include deposits in one name, joint deposits, RRSP, RRIF, TFSA, RDSP, RESP, FHSA and deposits held in trust. Coverage is free and automatic.
Your HISA balance is added to your other eligible deposits in the same category at the same institution, including GICs. So $80,000 in a HISA and $30,000 in a GIC, both in your name at one bank, adds up past the $100,000 limit for that category. The same money in a TFSA counts toward a separate TFSA limit.
Taxes on HISA interest
Interest from a non-registered HISA is taxed as income in the year it’s paid or credited. Your bank usually sends a T5 slip, but the CRA says you may not get one for amounts under $50. You still have to report that interest, on line 12100 of your return.
Interest earned in a TFSA isn’t reported. Interest in an RRSP isn’t taxed until you withdraw. If you’re in a high tax bracket, holding savings inside a TFSA can make a lower rate worth more after tax.
HISA vs GIC vs chequing
| Account | Access to money | Rate | Use it for |
|---|---|---|---|
| High-interest savings | Any time | Variable, can change at any time | Emergency fund, short-term goals |
| GIC | Locked until maturity, unless cashable | Guaranteed for the full term | Money you won’t need for a set term |
| Chequing | Any time, with payments and debit | Usually little or no interest | Paying bills and everyday spending |
How to compare high-interest savings accounts
- Look past the promoCompare the regular rate, and work out what you’d earn over a full year once the promo ends.
- Read the promo rulesCheck who qualifies, how long it lasts, any deposit cap and whether only new money counts.
- Check fees and transfersLook for a monthly fee, limits on free withdrawals and how quickly transfers reach your chequing account.
- Confirm deposit insuranceMake sure the institution is a CDIC member, or covered by the AMF or FSRA for Desjardins, and stay within $100,000 per category.
- Pick the right wrapperUse a TFSA or RRSP savings account if you have room and want to shelter the interest from tax.
Our savings accounts page compares rates, promos and fees across Canadian banks side by side, and it’s updated as rates change.
Frequently Asked Questions
What is a high-interest savings account?
It’s a savings account that pays a higher interest rate than a regular savings account while letting you withdraw at any time. CDIC calls it a way to grow savings without locking in for a specific term.
What is the difference between a high-yield and a high-interest savings account?
Nothing in practice. High-yield savings account is the common American term; in Canada banks usually say high-interest savings account, or HISA.
How is interest calculated on a HISA?
Most Canadian HISAs calculate interest daily on your closing balance and pay it monthly. The quoted rate is annual, so $10,000 at 2.5% earns about $250 a year.
What happens when the promo rate ends?
Your balance starts earning the regular rate. As of October 2026 in our data, the BMO Savings Amplifier Account drops from 5.00% to 0.50% after 120 days, so check the regular rate before you sign up.
Is my money in a HISA safe?
Eligible deposits at a CDIC member are insured up to $100,000 per category, per institution, including interest. Desjardins deposits are covered by the AMF in Quebec and FSRA in Ontario instead.
Are HISA ETFs covered by CDIC?
No. CDIC says HISA ETFs, also called money market ETFs, and HISA mutual funds aren’t protected. A HISA opened through a broker may be covered if the money is held at a member institution.
Do I pay tax on savings account interest?
Yes, in a non-registered account. Report it on line 12100 of your return every year, even if you don’t get a T5 slip, which may not be issued for less than $50.
Can I hold a HISA in a TFSA?
Yes. Many banks offer TFSA savings accounts. Interest is generally tax-free, but deposits use your TFSA room, which is $7,000 for 2026 plus any unused room.
Is a HISA better than a GIC?
It depends on when you need the money. A HISA keeps cash available at a variable rate; a GIC locks in a guaranteed rate for a term. Many people use a HISA for emergencies and GICs for dated goals.
How many savings accounts should I have?
There’s no rule. Some people open several to separate goals; the Neo Savings Account and the Everyday Growth Account both let you open more than one. Keep each institution’s total within CDIC limits.
Try this next
Sources, checked November 2026
- CDIC: High Interest Savings Account (HISA) cdic.ca
- CDIC: What's covered cdic.ca
- Canada Revenue Agency: Line 12100, Interest and other investment income canada.ca
- Canada Revenue Agency: RC4466 TFSA guide for individuals canada.ca
- Canada Revenue Agency: Registered retirement savings plan (RRSP) canada.ca
- FCAC: Setting up emergency funds canada.ca
- RBC: GICs rbcroyalbank.com
- Tangerine: Savings Account tangerine.ca
- Simplii Financial: High Interest Savings Account simplii.com
General information for Canadians, not financial, tax or legal advice. Rules and menus change, so confirm details with your bank, lender or the Government of Canada. See our methodology.