High Interest Savings Accounts
What is a High Interest Savings Account?
A High Interest Savings Account can take many different forms, but there is one characteristic that they all share: higher interest earned on balances than traditional bank accounts. They typically don’t replace your regular everyday bank account, but they’re useful to compliment them, offering a safe, accessible place to keep your money.
Why use a High Interest Savings Account?
There are many reasons:
- High Interest – These accounts earn more interest than the typical bank account. Although rates have been hovering at historical lows, they still continue to provide higher rates than traditional savings accounts.
- Accessibility – Whereas with GICs, your money is locked away for a set time (from 90 days to 5 years), with High Interest Savings Accounts, you can access your money whenever you want. Also, short-term GICs (under 3 years) tend to have lower interest rates than High Interest Savings accounts.
- Portability – The nature of these accounts allows you to deposit directly from your traditional bank account with no limits on how small the deposit is.
- Safety – Banks are insured, meaning that this money is safe.