5% to 12% interest on savings accounts: Fact or fiction?

When the Bank of Canada’s policy rate peaked at 5% throughout 2023 and 2024, times were good for savers. But recent rate cuts have seen savings account interest rates plummet too, so you might be wondering, can I still get a 5% interest savings account in Canada?

In this guide, we’ll look at current savings account interest rates in Canada to help you find the best rate and grow your bank balance sooner.

Can I get 5% interest on savings accounts?

It is possible to get 5% interest on savings accounts, but usually only as a promotional rate offered for a few months. After the promotional period, the 5% rate will drop to a much lower ongoing rate.

Online banks typically offer the highest ongoing savings account interest rates because they don’t have the same overhead as major brick-and-mortar financial institutions.

Current savings account interest rates in Canada

Finder Score for savings accounts

To make comparing even easier we came up with the Finder Score. Interest rates, account fees and features across 50+ savings accounts and 25+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the account - simple.

Read the full methodology

Related: Best high-interest savings accounts in Canada

Can I get 4% interest on a savings account in Canada?

Yes, you can get a 4% interest savings account in Canada. But in most cases, rates of 4% and over are only available for a limited promotional period, after which time, the accounts revert to a lower standard rate.

If you want an ongoing 4.00% interest rate on a savings account in Canada, check out the KOHO Everything Plan. As well as a high rate, this hybrid account also pays unlimited cash back of up to 2% cash back on groceries, transportation, food and drinks. The downside is that it comes with a $22 monthly fee.

So, if you’re chasing the best rate with no monthly fees, you’ll want to compare savings accounts that offer high promotional interest rates.

Options for some of the highest interest rates currently available on the market include:

• EQ Bank Personal Account: This hybrid account is offered by a fully online bank. Earn 3.50% interest on your money for 12 months and 1.25% thereafter.
• Scotiabank MomentumPLUS Savings Account: Earn a savings rate of up to 5% for 3 months when you open a Scotiabank MomentumPLUS Savings Account and a Scotiabank Ultimate Chequing Account. After the promo period, you’ll earn 0.55%.
• BMO Savings Amplifier Account: Earn 4.75% interest when you open both a BMO Performance Chequing Account and a BMO Savings Amplifier Account. Plus, earn up to a $750 opening bonus with the chequing account. Valid until September 30, 2025. Open a BMO Performance Chequing Account to claim the cash offer and bonus interest rate.
• RBC High Interest eSavings Account: Earn 4.70% for 3 months and 0.75% thereafter. Interest is calculated daily and paid monthly.
• Tangerine Savings Account: Earn 4.50% interest for 5 months (on the first $1,000,000 in deposits) when you sign up by July 31, 2025. After the promo period, you’ll earn 0.3%.
• CIBC eAdvantage Savings Account: Earn up to 1.45% interest. Get a regular interest rate is 0.25% - 1.20%. Get a Smart Interest of 0.25% on balances up to $200,000 when you save $200 or more in a month (limits apply), and a bonus rate of 4.90%% (for 3 months) on balances of up to $1,000,000.

Just be aware that these 4% savings account interest rates typically only apply for a short introductory period. After that time, you’ll get a lower interest rate.

Alternatives to high-interest savings accounts in Canada

Searching for a 5% interest savings account but disappointed by the rates currently available? You might want to consider one of these high-interest savings account alternatives.

ETFs

Exchange-traded funds are investment funds that are traded on stock exchanges. They’re made up of a collection of securities, such as stocks and bonds, making it easy to create a diversified portfolio of assets. Many popular ETFs are designed to track the performance of an underlying index, such as the S&P 500, while others are designed to outperform the market.

Related: Beginner's guide to investing in ETFs

GICs

Guaranteed investment certificates provide a guaranteed return on money you deposit for a specified time period. Terms range from 1 month to 10 years, and GIC interest rates are competitive compared to you’ll get on a high-interest savings account. However, you typically can’t access your funds early without penalty.

Open an EQ Bank GIC

• Lock in a 3.55% interest rate on a 1-year GIC. To fund your high interest GIC, you’ll need to open an EQ Bank Savings Plus Account first.

Go to site

Dive deeper: Our full guide to GICs in Canada

Hybrid bank accounts

Hybrid bank accounts combine the high interest rate of a savings account with the easy access to funds and other perks of a chequing account. They allow you to earn interest on every dollar you deposit, but commonly come with a prepaid card you can use for in-store and online purchases. It’s also often possible to earn cash back on your spending.

Examples of hybrid accounts include the EQ Bank Personal Account, KOHO plans, the PC Money Account and the Wealthsimple Cash Account.

EQ Bank Personal Account

• Earn up to 3.50% interest on your balance for 12 months and enjoy no fees on everyday banking plus unlimited transactions and no minimum balances. Sign up online in minutes.

Go to site

T&Cs apply.

Registered accounts

Tax-free savings accounts (TFSAs) provides tax protection for your investment income, so you won’t have to pay income tax on any interest or capital gains earned from your investments.

Registered retirement savings plans (RRSPs) support tax-deductible contributions. You also won’t pay any tax on the income you earn from your RRSP investments and savings until you make a withdrawal, which will hopefully happen once you’ve retired and you’re in a lower tax bracket.

Which bank gives 7% or 6% interest on savings accounts?

At the moment, none. The Bank of Canada’s policy rate is currently 2.75%, so savings account interest rates fall well short of the 6% or 7% mark. You can get promo rates of around 5%, but these only last for a limited period of less than six months.

So, if you want to get a return of 6%–7% or more on your investment, you’ll need to consider other options. One option you might want to consider is investing in stocks.

As an example, the S&P/TSX 60 Index tracks the performance of large-cap companies on the Toronto Stock Exchange. As of April 2025, it had delivered a 5-year annualized return of over 11%.

So, if you can find an index ETF or mutual fund that reliably tracks the performance of an underlying stock market index, you could potentially get better returns than you would from a savings account. Learn more in our guides on how ETFs work and ETFs vs mutual funds.

Closest alternatives to a 10% interest savings account in Canada

You won’t find a 10% interest rate savings account in Canada right now, so you’ll need to look elsewhere if you want the potential to generate such a high yield.

Stocks and ETFs can offer higher rewards, but they also come with a higher level of risk. And while past performance is no guarantee of future performance, our guide to the best Canadian ETFs in 2025 shows that sizable returns are indeed possible.

For example, the five top Canadian ETFs on the TSX based on one-year performance have delivered returns of 137% or more, while the five top Canadian ETFs on the TSX based on five-year performance have delivered returns of 26% or more.

Can I get a 12% interest savings account?

No, there are no savings accounts in Canada offering a 12% interest rate. Investors looking for that big of a return are more likely to come across cryptocurrency investment options. Crypto savings accounts and staking platforms sometimes promise yields as high as 12% or more, but they come with plenty of risk attached.

Keep in mind that the return on these investments may not be as straight forward as cash deposited in your account. For example, with crypto staking, you earn yield on your holdings, usually in the form of the network’s native currency.

Also note that cryptocurrency regulations in Canada are still being developed, and you won’t have the security of CDIC protection that you’d have with a savings account.

This table highlights some of your options:

Provider	Financial product	Return rate*	Details / Limitations
Kraken	Crypto staking	Up to 17%	Varies by blockchain Rewards are paid directly to your Kraken account
Bitget	On-chain Earn	Up to 30%	Varies by blockchain Staked assets are directly locked into proof-of-work networks
Coinbase	Coinbase Earn	Up to 14%	Varies by blockchain Rewards are paid directly to your Coinbase account
Bitbuy	Crypto staking	Up to 11.57%	Varies by blockchain Rewards are paid directly to your Bitbuy account

*Rates in this table were last verified on May 28, 2025.

Related: Our guide to getting free cryptocurrency in Canada

How to choose between a 5% savings account and other investment options

Is a 5% savings account right for you, or are you better off considering other investments? Ultimately, it all comes down to your savings goals, your financial situation and your appetite for risk.

Pros of high-interest savings accounts

A high-interest savings account is a simple and sensible choice. It provides a low-risk way to build your bank balance and, unlike other investments like stocks or property, there’s next-to-no risk of losing your money. Instead, all you have to do is sit back and let the power of compound interest work in your favour.

Savings accounts also come with the peace of mind of CDIC insurance. If you open a 5% savings account with a financial institution that is a member of the Canada Deposit Insurance Corporation (CDIC), up to $100,000 you deposit will be covered in the event that the bank fails.

Cons of high-interest savings accounts

But there are a few drawbacks to 5% savings accounts that you should consider too. For example, most high-interest savings accounts have variable interest rates, so if rates fall, your account’s interest-earning power will fall too.

Some 5% savings accounts offer unlimited access, but others may come with monthly transaction limits. Exceed your monthly limit, and you could be slugged with a fee.

You may also need to meet certain requirements to earn the maximum advertised interest rate like depositing a certain amount each month or maintaining a minimum balance.

Finally, while savings accounts are safer than other types of investments, they don’t offer the same potential for high returns.

How to qualify for a 5% interest rate or higher on savings accounts

If you’re going to get a juicy 5% interest rate on your savings account, you may need to meet some specific criteria. Common requirements are listed below.

• Promo period: Savings accounts with promotional bonus interest rates only offer a high rate for a limited introductory period. After the first 3-5 months, your account interest rate will usually switch back to a much lower standard rate.
• New customer requirement: Promo interest rates are usually only available if you’ve never held the same type of account with the same bank before. In some cases, you’ll even need to be a first-time customer to qualify.
• Minimum balance requirement: Some savings accounts have tiered interest rates—the larger your balance, the higher the rate you get. So, in order to get the highest advertised rate, you may need to meet a minimum balance requirement.
• Direct deposit requirement: Some bonus rate offers will require you to set up a recurring direct deposit to your savings account. You’ll need to deposit a minimum amount per month and maintain the deposit for a specified period.
• Chequing account requirement: You may also be required to open a chequing account with the same bank to qualify for bonus interest. Before deciding if it’s right for you, check whether the chequing account comes with a monthly fee and how many transactions you can make each month.

Tips to get the most out of your 5% interest savings account

Now that you’ve found the right 5% interest savings account for your needs, use the following tips to help grow your balance faster.

Don’t dip into your savings

When you’ve got a big pile of money sitting in your savings account, it can be tempting to dip into it every now and then when you feel like splashing out. But withdrawing from your savings account is only going to set you back in the long run, so be disciplined. Keep your savings goal in mind and only dip into your savings when absolutely necessary.

Set up a recurring deposit

Automate your savings by setting up a recurring deposit each week from your chequing account to your savings account every time you get your weekly paycheque. This will ensure that a portion of your pay goes directly to savings before you have a chance to spend it.

Make a budget

Analyze your weekly spending to work out where every last cent of your income goes. Identify any areas where you can cut back—you could cancel your gym membership and unused streaming services, or look at dining out less. You can also consider the 50/30/20 rule, with 50% of your income going to essential expenses, 30% to entertainment and other fun stuff and 20% to your savings.

Shop around

While your account may offer a great interest rate now, there may be a better rate available in the future. Every few months, take 10 minutes to do a quick review of current savings account interest rates. If there’s a higher rate available at another bank, don’t be afraid to switch.

Bottom line

Though 5% interest savings accounts were recently available in Canada, there currently aren’t any financial institutions offering such a high rate. But even though interest rates have fallen in recent times, it’s still possible to get an attractive rate of 4% or more on your savings balance. Just make sure you’re aware of any terms and conditions you need to meet to get the maximum rate, and compare a range of accounts before choosing the best high-interest savings account for you.

FAQs about 5% to 7% savings interest rates in Canada

• Where can I get 7% interest on my money?

  There are no savings accounts in Canada that pay 7% interest. The highest ongoing interest rate is 4%, while even limited-time promotional interest rates tend to top out at less than 5%. If you want a 7% return, you may want to consider other investment options, such as stocks and ETFs, keeping in mind that returns are not guaranteed and there is a higher risk involved with other investment types.

• Can I get a 5.5% interest savings account?

  As of the time of writing, there are no 5.5% interest savings accounts offered by Canadian banks. Savings account interest rates fluctuate in line with the Bank of Canada's policy rate, so it's currently not possible to find rates over 5%. However, if you're looking for the highest savings account interest rates, you'll generally find the best ongoing rates from online banks and fintechs rather than traditional banks.

• How can I apply for a 5% interest savings account?

  You can open a high-interest savings account completely online. To open your account, you'll need to fill out an online application form with your personal information, contact details and SIN plus provide proof of ID.

• How much interest will $1,000 earn in a 5% savings account?

  If you deposit $1,000 in a 5% interest savings account that compounds monthly, you'll earn $51 interest after one year and $283 after five years. But if you deposit an additional $100 each week, you'll earn $3,753 interest over a 5-year period.