The best online savings account is the Simplii High Interest Savings Account for a number of reasons. With no monthly fees, no minimum balance requirements, and a very high maximum interest rate, it has quite a lot to offer. Plus, there are several other valuable Simplii banking products you take advantage of.
However, there are plenty of other top-notch online savings accounts available to Canadians. Some provide incredibly high interest rates, some come with prepaid credit cards, and some offer unlimited transactions. It all depends on which features are important to you in a savings account.
Here, we take a look at the top online savings accounts in Canada, consider the pros and cons, and offer tips on how to choose the one that best suits your needs.
Key Takeaways
- The best online savings account is the Simplii High Interest Savings Account.
- When choosing an online savings account, consider the interest rate, monthly fees, and any minimum balance requirements.
- Opening an online savings account will require a few documents and pieces of ID, similar to opening a standard bank account.
What’s the best online savings account in Canada?
There are many online savings account options out there today. This table breaks down what some of the best have to offer.
All these accounts feature zero monthly fees and no minimum balance to open – features practically expected from any online savings account today. That said, some of them do have minimum balances required to achieve the highest interest rate.
If you’re in the market for an online savings account, each of these below options is well worth looking into.
| Best for… | Best online savings account | Special details | Apply now |
|---|---|---|---|
| High interest savings | Simplii High Interest Savings Account | * 0.3% - 1.5% interest * Access to CIBC ATMs with no surcharge |
Apply now |
| Tax free savings | Questrade TFSA | * Offers the ability for DIY investing or using Questwealth as a robo advisor * All investments grow tax free within the account |
Apply now |
| Saving and spending | KOHO Earn Interest | * 2% - 3.5% interest * Earn up to 5% cash back with the associated KOHO prepaid Mastercard |
Apply now |
| RRSP HISA | Tangerine RSP Savings Account | * Up to 0.3% interest * No monthly fee * No minimum balance |
|
| Unlimited transactions | EQ Bank Personal Account | * 3% interest * Includes a prepaid Mastercard to earn rewards on purchases |
Apply now |
| Quebec residents | Laurentian Bank High Interest Savings Account | * Up to 3.2% interest * No minimum balance * Set up automatic transfers |
Apply now |
Please note that the rates above are subject to change at any time. It’s best to visit the account’s website to get the most up-to-date information.
Best for high interest savings: Simplii High Interest Savings Account
The Simplii High Interest Savings Account provides tiered interest rates that go as high as 1.5%, making it the best high interest savings account option. Simplii also offers other highly-rated banking products, making it a valuable one-stop shop.
Pros
- Impressively high max interest rate
- No monthly fee
- No minimum balance requirements
- Valuable welcome and referral bonuses often available
Cons
- Very high balance required to qualify for max interest rate
- Access to funds is limited
With a jaw-dropping promotional interest rate of 4.5% for the first 5 months, it's hard not to be tempted by the Simplii High Interest Savings Account. You'll even get free transfers to your Simplii chequing account to make accessing your money easy and stress free.
- 4.5% interest for the first 5 months
- No monthly fees
- $125 friend referrals available
- Backed by CIBC bank
- Low regular interest rate of 0.3%
- High minimum balance to earn the top rate of 1.5%
- No Interac e-Transfer or debit capabilities
- $20 inactivity fees
- Resident of Canada
- Age of majority
- Refer a friend for $125
- Very impressive promo interest rate
Best for tax free savings: Questrade TFSA
The Questrade TFSA is an unusual type of savings account that can hold more than just cash.
Pros
- No annual account fees
- No fees to open new accounts
- ETF purchases are commission free
- Offers a TFSA-specific GIC
Cons
- GICs and bonds have high minimum investments of $5,000
- Mutual funds are $9.95 a trade
Questrade is a discount online brokerage tool that not only offers Canadian traders the ability to embark on DIY investing journeys, but also offers a more laid-back robo advisor option through Questwealth. Whichever option you choose, you can opt to open a Tax-Free Savings Account (TFSA), which lets you grow your money without worrying about taxes.
- Your money grows tax free
- ETFs and stocks are low cost
- Get guaranteed and tax-free return with a TFSA GIC
- Mutual funds available
- Let the pros do the work with Questwealth portfolios
- Get $50 off commission fees OR $10,000 managed free for a year
- No savings account available
- GICs and bonds have high minimum investments of $5,000
- Mutual funds are $9.95 a trade
- Canadian citizen
- Low cost investing
- ETFs are free to buy
Best hybrid save/spend account: KOHO Earn Interest
The KOHO Earn Interest is a unique product that combines an HISA with a prepaid Mastercard for spending. Plus, if you add KOHO Credit Building to the mix, you can save money, spend money, and improve your credit.
Pros
- Earn up to 3.5% interest
- Fee-free KOHO Essential Mastercard included
- Earn cash back on spending
- RoundUps feature lets you automate your savings
Cons
- Earning the max interest rate means paying a fee for a KOHO credit card
- The prepaid card has typical limitations, like no insurance and limited acceptance
Want a savings account that consistently has one of the best rates in Canada? You'll want to check out KOHO Earn Interest With The KOHO Prepaid Mastercard, which gets you up to 3.5% interest, depending on your subscription level.
- No transaction fees
- Earn 3.5% interest on every dollar
- Comes with a free cash back prepaid Mastercard
- Supports major digital wallets
- Free app for tracking spending and setting savings goals
- Automate your savings with RoundUps
- Monthly fees
- You must meet your province's age of majority
- Comes with a KOHO Prepaid Mastercard which you can upgrade for even more perks
- Earn up to 6.5% cash back on your spending
- Free app for setting saving goals and tracking spending
- Savings paid on a monthly basis
- KOHO International Money Transfer allows you to send money abroad to people in over 190 countries, right from your KOHO balance
Best online RRSP HISA: Tangerine RSP Savings Account
With the convenience of unlimited and free transfers between your Tangerine accounts, moving money towards your retirement is easy with the Tangerine RSP Savings Account.
Pros
- Earn up to 0.3% interest
- Has an automated savings program that will move a set amount into your account for you
- No minimum balance or monthly fee
Cons
- The interest rate isn't amazingly high
- As with other RRSPs, it's hard to take money out of your account as the government needs to be notified for taxation purposes, making this less flexible
Best account with unlimited transactions: EQ Bank Personal Account
If your situation requires dipping into your savings account occasionally, the EQ Bank Personal Account offers unlimited access and a few other perks. With a decent interest rate and no ATM fees, it's definitely worth a look.
Pros
- No monthly fees
- Everyday interest rate of 3%
- Includes a prepaid Mastercard
- Access to inexpensive international money transfers
Cons
- No welcome bonus or incentives
- EQ Bank doesn't have any of its own ATMs
If you’re looking for a simple place to stash some extra cash and earn a higher-than-average interest rate, EQ Bank Personal Account may be exactly what you’re looking for. It does have a few other features, including the ability to easily send International Money Transfers, but otherwise it’s mostly geared to earning you interest.
- High daily interest rate
- Easy access to all other EQ Bank products
- Less expensive international money transfers
- Zero everyday banking fees
- Free Interac e-Transfers, electronic funds transfers, and bill payments
- No minimum balance
- No welcome bonus
- Age of majority
- Canadian citizen
- Very high interest rate
- Includes a prepaid cash back Mastercard
- No ATM fees, plus reimbursement for any independent fees
Best account for Quebec residents: Laurentian Bank High Interest Savings Account
Laurentian Bank operates primarily in Quebec, making it a top choice for residents of this province to easily access in-person services. The Laurentian Bank High Interest Savings Account has tiered interest rate, with earnings up to 3.2% for those with a balance of $100,000 to $500,000.
Pros
- Up to 3.2% interest rate
- No monthly fees or minimum balance to start earning 3% interest
- Automated savings feature
Cons
- No free ATM withdrawals
- Fees for transactions and e-Transfers
- High balance required to reach maximum interest rate
Get a high interest rate of up to 3.2%* with the Laurentian Bank High Interest Savings Account. You'll earn 2.2% on savings under $100,000, 3.2% on savings between $100,000 and $5,000,000, and 1% on savings of more than $5,000,000.
- Valuable tiered interest rates up to 3.2%
- No minimum balance requirements to waive fees
- Auto saving feature
- E-Transfer fees
- Minimum balance to earn max interest is on the higher end
- No branch locations outside of Quebec
- Be the age of majority in your province
- Be a Canadian resident
What is an online savings account?
An online savings account is a bank account that can only be accessed digitally. For example, MBNA, Simplii Financial, and Tangerine don't have physical branches. Therefore, you can only move money around using their online banking portals or smartphone apps.
Because there is no overhead and fewer staff to hire, you'll usually have access to higher interest rates or lower fees.
Types of online savings accounts
Here are some examples of the most common savings accounts that you're likely to use if you go with an online bank:
- High interest savings accounts (HISAs)
- TFSAs
- RRSPs
- Hybrid bank accounts
- U.S. dollar accounts
Pros and cons of online savings accounts
Here's a look at what online savings accounts do well and some areas where they're lacking. Please note that these don't apply to every online savings account in Canada, but do apply for most.
Pros:
- Higher interest rates
- Lower or no monthly fees
- No minimum balance requirements
- Free transfers and Interac e-Transfers
- Ability to direct deposit
Cons:
- No physical branches or real humans to talk to
- Lack of higher-end perks like safety deposit boxes or free cheques
- No investment advisors
How to choose the best online savings account
Compared to traditional bank accounts, online accounts tend to charge lower fees and offer higher interest rates. This is because online-only banks don’t have to bear the infrastructure costs of maintaining brick-and-mortar branches, and they pass that savings onto the customers.
Choosing the right savings account is crucial to reaching your financial goals. If you’re wondering how to choose the best online savings account, here’re a few features to consider:
- Interest rate: With higher rates, you can multiply your savings faster.
- Monthly maintenance fees: With lower fees, you minimize your banking costs.
- Minimum balance: With less strict restrictions on maintaining a minimum balance in your account, you can spend your finances in more priority areas.
- Customer service: The faster and more efficiently your grievances are addressed, the more lucrative the financial product becomes in terms of its value.
How to use an online savings account
Once you choose your bank, you can choose from a variety of different accounts to open. Some people open just one account. Others like to focus on taking advantage of Canada's tax-sheltered investments and aim to open multiple.
You can also open up multiple accounts at different online banks, especially if you have different uses for each.
What you need to open a savings account online
Here are all things you need to open an online savings account:
- Your name, date of birth, and address
- Your Social Insurance Number (mandatory for interest-bearing accounts)
- At least one piece of government-issued ID (driver’s license, passport, birth certificate, etc.)
- A second piece of ID (that could also be an existing debit or credit card, employee ID, etc.)
- Proof of residence (utility bill, bank statement, tax assessment, etc.)
Some online-only banks may also ask for a selfie or a contact who can vouch for you.
How to open a savings account online
Here's a step-by-step guide to opening up an online savings account:
- Be sure to compare various accounts before making your decision
- Visit the bank’s website and fill out an online application
- Provide the bank with any required ID or proof of address documents
- Wait for your debit card in the mail (if applicable)
- Activate your card, set up any automatic payments, and start using your new account
Finding the best online savings account
If you want higher interest rates, no monthly fees, and access to a variety of unique features, then an online savings account is the right choice for you.
We’d love to hear what you have to say about the state of online savings accounts in Canada today. Have you already switched to online-only, or are you thinking about doing so soon? Which features are you looking for the most in your new account?
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Can I open a savings account online?
Depending on the financial institution, you can typically apply for a savings account online via a mobile app or the bank’s website. Opening a bank account online is more convenient and efficient than travelling to a bank branch.
What is the best high interest online savings account?
The overall best high interest online savings account is the Simplii High Interest Savings Account. However, the best HISA with the highest regular interest rate right now is the Motive Savvy Savings Account – it offers 2%.
Can you buy things online with a savings account?
Most accounts come with a debit card, and some even provide a prepaid credit card, both of which provide opportunities for online shopping.
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