Best Interest Rates in Canada for 2025

Finding the best place to park your money can feel overwhelming with so many options promising attractive returns. Whether you're building an emergency fund, saving for a vacation, or just wanting your money to work harder, understanding current interest rates helps you make smart decisions about where to keep your cash.

KOHO leads the pack with up to 4% interest on your entire balance – no minimum requirements, and no hidden fees.

But depending on your needs, other high-interest savings accounts, GICs, and investment options might also fit your financial goals.

1. KOHO

Unlike traditional banks that offer measly interest rates, KOHO provides straightforward, competitive returns on your entire balance.

What makes KOHO special:

• Up to 4%: Your whole balance earns the same great rate – no minimum balance required

• Monthly interest payment: Interest is paid monthly, maximizing your compound growth

• No hidden requirements: No need to maintain massive balances or jump through hoops to earn the advertised rate

• Instant access: Unlike GICs, you can access your money whenever you need it

• All-in-one platform: Combine high interest savings with spending accounts, budgeting tools, and credit building

• CDIC insured: Your money is protected up to $100,000 through deposit insurance

Perfect for: Anyone wanting competitive returns without complexity. Ideal for emergency funds, vacation savings, or any money you want to grow while keeping accessible.

2. High-Interest Savings Accounts

Several financial institutions offer competitive rates for Canadians willing to shop around:

EQ Bank Personal Account: Currently offering 3.50% with no minimum balance and no monthly fees.

Scotiabank MomentumPLUS: Up to 5.00% promotional rate for the first 3 months, then regular rates apply.

Tangerine Savings Account: Up to 4.50% promotional rate for new customers, with regular rates lower after the promotional period.

Simplii Financial: 4.25% promotional rate for new accounts, with competitive ongoing rates.

3. Guaranteed Investment Certificates (GICs)

GICs lock in your interest rate for a specific period, offering predictability in exchange for less flexibility:

1-Year GICs: Around 5.10% at many major banks
3-Year GICs: Approximately 4.80% - 6.10% depending on the institution
5-Year GICs: Up to 6.45% for longer commitments
10-Year GICs: Some specialty products offering 7.65%, though these are less common

Pros: Guaranteed returns, CDIC insured, predictable income
Cons: Money is locked away, early withdrawal penalties, rates may not keep up with inflation

Best for: Money you won't need for a specific period, conservative investors who want guaranteed returns.

4. Tax-Free Savings Accounts (TFSAs)

TFSAs aren't a specific investment but rather a tax-sheltered account that can hold various investments:

High-Interest TFSA: Many of the same institutions offering competitive savings rates also offer TFSA versions
TFSA GICs: Same rates as regular GICs but with tax-free growth
TFSA Investments: Potential for higher returns through stocks, ETFs, or mutual funds, but with market risk

The advantage: All growth within a TFSA is completely tax-free, making effective returns higher than equivalent taxable accounts.

Best for: Long-term savings goals, retirement planning, or maximizing tax-free growth on investments.

5. Money Market Accounts and Term Deposits

Traditional banks and credit unions offer these conservative options:

National Bank High Interest Savings: 0.75% on all balances
PC Money Account: 3.10% promotional rate
Manulife Bank Advantage Account: 1.75% with additional banking benefits

What to consider when choosing

Access to your money: Do you need instant access (savings accounts) or can you lock money away (GICs)?

Interest rate type: Is it a promotional rate that will drop, or a consistent ongoing rate?

Minimum balances: Some accounts require large minimums to earn advertised rates.

Fees: Monthly fees can quickly eat into interest earnings on smaller balances.

Insurance coverage: Ensure your deposits are covered by CDIC or provincial deposit insurance.

Tax implications: Interest earned in regular accounts is taxable; TFSA growth is not.

Start earning more today

The best time to start earning better interest rates was yesterday – the second best time is today. While rates change with economic conditions, finding an account that offers both competitive returns and fits your lifestyle ensures your money works as hard as you do.

Don't let your money sit in a 0.01% account when better options are readily available. Whether you choose KOHO or explore other competitive options, moving your money to a higher-earning account is one of the easiest ways to improve your financial situation.