How do High Interest Savings Accounts Work?

A high interest savings account (HISA) works like a regular savings account, but with a higher interest rate so your money grows faster while still staying easy to access.

You earn interest on the money you keep in the account, usually calculated daily and paid monthly.

Using KOHO Essential for High Interest Savings

If you want a no-fee account that also helps your savings grow, KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

How High Interest Savings Accounts Earn You Money

Most HISAs work like this:

• You deposit money into the account.

• The bank or provider pays you a variable interest rate on your balance.

• Interest is often calculated daily and paid monthly into your account.

The higher the rate (and the higher your balance), the more your savings can grow over time.

Access vs Growth

With a HISA, you usually get:

• Easy access – you can move money out when you need it (transfers, bill payments, etc.).

• Better growth than leaving cash in a low- or no-interest chequing account.

That’s why HISAs are great for:

• Emergency funds

• Short- to medium-term goals (travel, moves, big purchases)

• Keeping a safe buffer while still earning something on it

Things to Watch For

When comparing high interest savings options, look at:

• The actual rate – not just promo banners; check the ongoing rate.

• Fees – account or transfer fees can eat into what you earn.

• Conditions – minimum balances, promo periods, or “new money only” rules.