Looking for the best place to grow your savings in Canada? This comprehensive guide explores the top online savings accounts offering competitive interest rates and excellent features for February 2025. Whether you're saving for a specific goal or building your emergency fund, these accounts provide the perfect balance of high returns and accessibility.
What Makes a Great Online Savings Account?
Before diving into the top options, it's important to understand what makes an online savings account worthwhile. The best accounts typically offer high interest rates, low or no fees, and convenient digital banking features. Many Canadians are discovering that combining these accounts with a good checking account creates an optimal banking setup.
Best Online Savings Accounts in Canada (February 2025)
1. EQ Bank Personal Account
EQ Bank continues to lead the pack with its impressive offerings. Their personal account combines the convenience of a checking account with high-interest savings features.
- Interest Rate: 4.00% with direct deposit
- Regular Rate: 2.50%
- Monthly Fee: $0
- Key Feature: Unlimited free transactions
2. Motive Savvy Savings Account
Motive Financial stands out with their promotional rate that outperforms most competitors in the market.
- Promotional Rate: 4.75% (first 120 days)
- Regular Rate: 2.75%
- Monthly Fee: $0
- Key Feature: High promotional rate
3. Scotiabank MomentumPLUS Savings Account
Scotiabank's offering proves that traditional banks can compete with online-only institutions.
- Promotional Rate: 5.10% (first 3 months)
- Regular Rate: 0.65%
- Monthly Fee: $0
- Key Feature: Premium interest rate with longer holding periods
4. Simplii Financial High Interest Savings Account
As CIBC's digital banking division, Simplii Financial offers competitive rates with the backing of a major bank.
- Promotional Rate: 3.90% (first 5 months)
- Regular Rate: 0.30% - 2.00%
- Monthly Fee: $0
- Key Feature: Integration with CIBC ATM network
5. Tangerine Savings Account
Scotiabank's online banking subsidiary provides an excellent balance of features and rates.
- Promotional Rate: 4.50% (first 5 months)
- Regular Rate: 0.30%
- Monthly Fee: $0
- Key Feature: User-friendly mobile app
6. KOHO Spending and Savings Account
KOHO offers a unique hybrid account that combines spending and savings features with competitive interest rates.
- Interest Rate: 4.00%
- Monthly Fee: $0
- Key Feature: Cashback on purchases
- Additional Benefit: No minimum balance required
7. Neo High-Interest Savings Account
Neo Financial's modern approach to banking brings a tech-forward solution with competitive rates.
- Interest Rate: 3.00%
- Monthly Fee: $0
- Key Feature: Integration with Neo Card rewards
- Additional Benefit: Quick digital account opening
8. Wealthsimple Cash
Wealthsimple Cash offers a tiered interest rate structure that rewards higher balances.
- Interest Rate: 2.00% - 3.00% (based on balance)
- Monthly Fee: $0
- Key Feature: Seamless integration with investment accounts
- Additional Benefit: Free peer-to-peer transfers
Summary of Best Online Savings Accounts (February 2025)
| Bank | Promotional/Current Rate | Regular Rate | Monthly Fee |
|---|---|---|---|
| EQ Bank | 4.00% | 2.50% | $0 |
| Motive Financial | 4.75% | 2.75% | $0 |
| Scotiabank | 5.10% | 0.65% | $0 |
| Simplii Financial | 3.90% | 2.00% | $0 |
| Tangerine | 4.50% | 0.30% | $0 |
| KOHO | 4.00% | 4.00% | $0 |
| Neo Financial | 3.00% | 3.00% | $0 |
| Wealthsimple | 3.00% | 2.00% | $0 |
Final Words
The online savings account market in Canada remains competitive in February 2025, with several institutions offering attractive rates and features. For students and young professionals, consider checking out specialized student banking options that might offer additional benefits. Remember to compare current interest rates and account features to find the best fit for your financial goals.
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Frequently Asked Questions About Online Savings Accounts in Canada
Are online savings accounts safe in Canada?
Yes, online savings accounts from registered Canadian financial institutions are safe. They are protected by the Canada Deposit Insurance Corporation (CDIC) for up to $100,000 per eligible deposit category. This includes deposits held in savings accounts, checking accounts, and GICs with terms of 5 years or less.
What's the difference between a promotional rate and a regular rate?
A promotional rate is a higher interest rate offered for a limited time, usually for new customers or new deposits. After the promotional period ends (typically 3-6 months), the interest rate reverts to the regular rate. It's important to consider both rates when choosing an account, especially if you're planning to save long-term.
Can I open multiple online savings accounts?
Yes, you can open multiple online savings accounts, either with the same bank or different institutions. This strategy, known as rate chasing, allows you to take advantage of different promotional rates and features. However, keep in mind that managing multiple accounts requires more attention to avoid fees and maintain minimum balances where required.
How often do online savings account rates change?
Online savings account rates typically change in response to the Bank of Canada's policy rate decisions. Banks can adjust their rates at any time, but major changes usually occur after central bank rate announcements. Promotional rates are typically guaranteed for the specified period, while regular rates may fluctuate with market conditions.
