Best High‑Interest Savings Accounts for 2025 in Canada
Published on June 16, 2025 | By WealthFusions Finance Team
With inflation hovering around 2.8% and interest rates steadily rising, Canadians are actively seeking out high‑interest savings accounts that offer both security and excellent returns. In 2025, online banks and credit unions are leading the charge with APYs reaching up to 5.00%. This detailed guide compares the best high‑interest savings accounts in Canada—focusing on fees, interest rates, CDIC coverage, and promotional perks.
At‑a‑Glance Comparison
| Institution | APY (2025) | Monthly Fee | Min. Opening Balance | CDIC‑Insured | Promo / Bonus |
|---|---|---|---|---|---|
| EQ Bank | 5.00% | $0 | $0 | Yes | 5.00% APY for 6 months |
| Simplii Financial | 4.75% | $0 | $0 | Yes | $100 bonus‡ |
| Tangerine | 4.50% | $0 | $100 | Yes | 1.20% on first $50K |
| Motusbank | 4.25% | $0 | $0 | Yes | $150 bonus§ |
| Oaken Financial | 4.00% | $0 | $1,000 | Yes | — |
| Alterna Bank | 3.75% | $0 | $0 | Yes | 1.00% on first $25K |
‡$100 bonus with $5K deposit & 5 transactions. §$150 bonus with $15K deposit & 10 transactions.
1. Look for the Highest APY
The Bank of Canada’s 2025 overnight rate of 4.75% has driven competition among online banks. EQ Bank currently offers a promotional APY of 5.00%, which can yield significantly more interest than the average Big Five bank’s 0.10%. On a $50,000 deposit, that’s a difference of $2,450 annually.
2. Understand Fees & Minimum Balances
- Minimums: Most accounts require $0 to open, though Oaken requires $1,000.
- Monthly Fees: All top picks are free of monthly service charges.
- Hidden Fees: Check for inactivity or interbank transfer fees.
3. Assess Promotional Offers
Promotions can be lucrative, but they often come with strings attached:
- Simplii requires a $5,000 deposit to qualify for its $100 bonus.
- Motusbank’s $150 promo requires 10 transactions and $15,000 deposit.
4. Verify CDIC or Provincial Coverage
Security matters. All banks listed are covered by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per account type. Credit unions in Quebec are covered by the Autorité des marchés financiers.
5. Evaluate Access & Digital Features
Each bank offers full-featured digital banking, including:
- Mobile apps rated 4.5+ on the App Store/Google Play
- Interac e‑Transfers of $5,000+/day
- Round-up savings, auto-deposits, and instant balance views
6. Compare Withdrawal Limits & Speed
| Institution | Free e‑Transfers/mo | Transfer Speed |
|---|---|---|
| EQ Bank | Unlimited | Instant |
| Simplii Financial | Unlimited | Instant |
| Tangerine | 5 | 30 min |
| Motusbank | Unlimited | Instant |
7. Consider Customer Service & Reputation
- EQ Bank: Live chat + call centre (7 days/week)
- Simplii: 24/7 chatbot and phone support
- Motusbank: Virtual teller from 8 AM to 10 PM ET
8. Factor in Long‑Term Stability
- APY Consistency: EQ Bank has stayed above 4.00% since 2023
- Bank Strength: Choose institutions with high Tier 1 capital ratios (≥10%)
How Compounding Frequency Impacts Returns
The frequency of compounding can significantly impact your total earnings. For example, daily compounding means interest is calculated every day and added to your balance, which earns more interest the next day. This creates a snowball effect. EQ Bank and Motusbank both use daily compounding with monthly payouts—an ideal combo for maximizing growth.
Best High-Interest Savings Accounts by User Type
- Young Professionals: EQ Bank’s mobile-first experience and no fees make it perfect for side-hustlers and gig workers.
- Families: Tangerine’s joint account features and 1.20% bonus on the first $50K make it a solid family pick.
- Newcomers to Canada: Simplii supports newcomers with passport-based applications and welcome bonuses.
- Retirees: Oaken offers conservative savers stability and a high baseline APY for large balances.
3‑Step Action Plan to Maximize Savings in 2025
- Choose Two Accounts: Try EQ Bank for high APY and Motusbank for best bonus.
- Set Automated Transfers: Schedule weekly deposits to build wealth passively.
- Review APYs Quarterly: Reassess accounts every 3 months to stay on top of changing rates.
Conclusion: Grow Your Money the Smart Way
In 2025, maximizing your savings is all about finding the right combination of high APY, no fees, and strong security. EQ Bank, Simplii Financial, and Motusbank stand out, but the best option depends on your lifestyle, savings goals, and tech preferences. Start small, compare real-world results, and scale your strategy.
Check the banking page on WealthFusions to discover exclusive offers and get matched with your ideal account.
Frequently Asked Questions
- 1. What is APY?
- Annual Percentage Yield includes compounding interest and represents your true rate of return over a year.
- 2. Are online savings accounts safe in Canada?
- Yes—all featured banks are CDIC‑insured up to $100,000 and use encrypted login and 2FA security.
- 3. Can I access my funds anytime?
- Yes—Interac e‑Transfers are available 24/7 with most institutions offering instant withdrawals.
- 4. Are promotional APYs worth it?
- They can be if you meet the requirements. After expiry, funds can be moved without penalty to higher-earning accounts.
- 5. Can newcomers open high-interest accounts?
- Yes—Simplii and EQ Bank allow non-residents and newcomers with valid ID and proof of address.
- 6. Are there hidden fees?
- Some accounts charge for inactivity or paper statements. Read the fine print before opening.
- 7. Which account is best for long-term savings?
- Motusbank and EQ Bank are excellent for compounding growth with no minimums or fees.