A high-interest savings account (HISA) is the simplest way to earn meaningful interest on cash you want to keep accessible. Unlike a GIC (which locks your money in), a HISA lets you deposit and withdraw freely while earning 3–4%+ interest. Every Canadian should have a HISA for their emergency fund, short-term savings, and cash between investments.
How HISAs Work
| Feature | Details |
|---|---|
| Interest rate | Variable (changes with market conditions) |
| Access to money | Anytime — no lock-in |
| Minimum balance | Usually $0 |
| CDIC insurance | Up to $100,000 per institution |
| Account fees | $0 at most online banks |
| Interest calculation | Daily balance, paid monthly |
Interest is calculated daily on your balance and paid monthly. Rates are variable — they can go up or down, usually following the Bank of Canada overnight rate.
Best HISA Rates in Canada
Online banks consistently offer the highest HISA rates because they don’t carry the overhead of physical branches.
| Bank Type | Typical Rate Range |
|---|---|
| Big 5 banks (RBC, TD, BMO, Scotia, CIBC) | 0.01–1.50% |
| Online banks (EQ Bank, Tangerine, Simplii) | 2.50–4.50% |
| Credit unions | 1.50–3.50% |
Rates change frequently. See our regularly updated comparisons:
HISA in Registered vs Non-Registered Accounts
TFSA HISA (Best Option)
Holding your HISA inside a TFSA makes the interest completely tax-free. This is the best place for your emergency fund and short-term savings.
| HISA Type | Tax on Interest |
|---|---|
| Regular (non-registered) HISA | Taxed at your full marginal rate |
| TFSA HISA | Tax-free |
| RRSP HISA | Tax-deferred |
| FHSA HISA | Tax-free (for home purchase) |
If you have TFSA room available, always open a TFSA HISA rather than a regular one. At a 30% marginal tax rate, a 4% regular HISA effectively earns 2.8% after tax, while a TFSA HISA earns the full 4%.
What to Use a HISA For
| Use Case | Why HISA |
|---|---|
| Emergency fund | Accessible anytime, earns interest |
| Down payment savings (1–2 years) | No risk to principal |
| Tax payments you’re setting aside | Keep earning until due date |
| Cash between investments | Park while deciding where to invest |
| Short-term goals (vacation, car) | No risk of losing money |
| Business operating cash | Earn interest on float |
HISA vs GIC
| Feature | HISA | GIC |
|---|---|---|
| Rate | Lower (variable) | Higher (fixed) |
| Access | Anytime | Locked until maturity |
| Rate risk | Rate can drop | Rate is guaranteed |
| Best for | Emergency fund, flexible savings | Known timeline, higher rate |
Use both: HISA for money you might need + GIC ladder for money you can lock away.
Full comparison: GIC vs HISA
Three-way comparison: GIC vs Bond ETF vs HISA
HISA Calculator
Calculate how much interest your savings will earn: HISA Calculator
Where to Open a HISA
| Provider | Rate | TFSA HISA? | Minimum | CDIC? |
|---|---|---|---|---|
| EQ Bank | Top tier | ✅ | $0 | ✅ |
| Oaken Financial | Top tier | ✅ | $1 | ✅ |
| Manulife Bank | Competitive | ✅ | $0 | ✅ |
| Tangerine | Mid tier (promo rates) | ✅ | $0 | ✅ |
| Simplii Financial | Mid tier | ✅ | $0 | ✅ |
| Wealthsimple Cash | Competitive | ✅ | $0 | ✅ |
| KOHO | Competitive | ❌ | $0 | ❌ (not a bank) |
| Big 5 banks | Low | ✅ | $0 | ✅ |
Tip: You can have HISAs at multiple institutions. There’s no rule against it — and spreading across institutions maximizes your CDIC coverage ($100,000 per institution).