A HISA calculator projects how much your High Interest Savings Account will grow over time, factoring in your initial deposit, monthly contributions, interest rate, and whether the account is held inside a TFSA (tax-free) or a non-registered account (taxable). This tool helps you compare the after-tax impact of different account types and plan your savings goals.
How this HISA calculator works
Enter your initial deposit, planned monthly contribution, interest rate, time period, and account type (TFSA or non-registered). If you select a non-registered account, enter your marginal tax rate to see the after-tax result. The calculator shows your projected balance, total interest earned, tax paid on interest, after-tax balance, and effective after-tax return.
Best HISA rates in Canada (2026)
| Institution | Everyday Rate | Type | CDIC Insured |
|---|---|---|---|
| EQ Bank | 4.00% | Online bank | ✓ |
| Tangerine | 0.25–3.50%* | Online bank | ✓ |
| Simplii Financial | 0.20–3.40%* | Online bank | ✓ |
| Motive Financial | 3.75% | Online bank | ✓ |
| Oaken Financial | 3.60–3.90% | Online bank | ✓ |
| Big Five Banks | 0.50–2.00% | Traditional | ✓ |
| Credit Unions | 2.50–4.50% | Credit union | Provincial |
Tangerine and Simplii everyday rates are typically at the low end of this range, with promotional rates of 5.00%+ for new deposits pushing the high end for limited periods — ranges reconciled across our coverage. Rates as of August 2026. Always verify current rates directly with the institution.
TFSA HISA vs non-registered HISA
The tax savings of holding your HISA inside a TFSA are significant over time:
Example: $25,000 deposited at 4.00% for 5 years, monthly compounding, 30% marginal tax rate
| Metric | TFSA HISA | Non-Registered HISA |
|---|---|---|
| Total interest earned | $5,524 | $5,524 |
| Tax on interest | $0 | $1,657 |
| After-tax interest | $5,524 | $3,867 |
| After-tax balance | $30,524 | $28,867 |
| Effective after-tax rate | 4.00% | 2.80% |
Over 5 years, the TFSA HISA saves you $1,657 in taxes. Over 10 or 20 years, the compound effect grows substantially.
When to use a HISA
Emergency fund
A HISA is the best place for your 3-6 month emergency fund. It is liquid (accessible anytime), earns interest, and is CDIC-insured. Hold it in a TFSA for tax-free growth.
Short-term savings goals
Saving for a vacation, car, or wedding? A HISA keeps your money accessible while earning meaningful interest. For goals 1-3 years out, the guaranteed return beats the risk of stock market volatility.
Down payment savings
If you are saving for a home down payment, a HISA protects your capital. Consider also using the FHSA for its tax benefits if you are a first-time buyer.
Parking cash between investments
If you have sold investments and are waiting for a buying opportunity, a HISA earns interest on your cash while you decide.
HISA vs GIC vs bonds
| Feature | HISA | GIC | Bonds/Bond ETFs |
|---|---|---|---|
| Liquidity | Full — withdraw anytime | Locked for term | Tradeable but price risk |
| Rate guarantee | Rate can change anytime | Fixed for full term | Coupon fixed, price fluctuates |
| Typical rate (2025) | 3.50–4.50% | 3.75–5.00% | 3.00–4.50% |
| CDIC coverage | ✓ Up to $100K | ✓ Up to $100K | ✗ No |
| Best for | Emergency fund, short-term | 1-5 year goals | Income portfolio component |
How to maximize your HISA returns
- Choose an online bank or credit union — Rates are 2-4× higher than Big Five banks
- Hold it in a TFSA — Eliminates tax on interest entirely
- Set up automatic contributions — Consistent deposits take advantage of monthly compounding
- Shop rates regularly — Switch if a competing HISA offers a significantly better rate
- Avoid promotional rate traps — Some banks offer high teaser rates for 3-6 months that drop sharply afterward
- Ladder with GICs — Use a HISA for liquidity and GICs for money you can lock up — see GIC vs HISA for a comparison
HISA growth projections at current rates
Starting with $10,000 at 3.75% (compound monthly):
| After | Balance | Interest earned |
|---|---|---|
| 6 months | $10,187 | $187 |
| 1 year | $10,382 | $382 |
| 2 years | $10,779 | $779 |
| 3 years | $11,191 | $1,191 |
| 5 years | $12,044 | $2,044 |
| 10 years | $14,506 | $4,506 |
Assumes constant 3.75% rate. Actual HISA rates are variable and will fluctuate with Bank of Canada policy.
Monthly contribution strategy
Adding regular monthly contributions dramatically accelerates HISA growth. Example: $10,000 initial balance + $500/month at 3.75%:
| After | Balance | Total contributions | Total interest |
|---|---|---|---|
| 1 year | $16,335 | $16,000 | $335 |
| 3 years | $29,765 | $28,000 | $1,765 |
| 5 years | $44,044 | $40,000 | $4,044 |
The monthly interest on $44,000 at 3.75% = approximately $137/month — your savings itself generates meaningful income.
Frequently asked questions
How is HISA interest taxed in Canada? HISA interest is taxed as ordinary income at your marginal rate. For every $1,000 in HISA interest, a person in a 40% combined federal/provincial bracket pays approximately $400 in tax, keeping $600. Solution: hold your HISA within a TFSA for fully tax-free interest.
What happens to HISA rates when the Bank of Canada cuts rates? HISA rates track the Bank of Canada overnight rate closely. Each 0.25% rate cut typically reduces HISA rates by a similar amount within weeks. A 3.75% HISA rate reflects a Bank of Canada overnight rate of approximately 2.75–3.00%. If rates are cut further, HISA returns will decline proportionally.
Related calculators
- Savings Account Interest Calculator — Calculate interest with different compounding frequencies
- GIC Calculator — Compare GIC returns at different terms
- Emergency Fund Calculator — Determine how much you need in your emergency fund
- TFSA Calculator — Project TFSA growth over time
- Savings Goal Calculator — Calculate how long to reach a savings target
- Inflation Calculator — Check if your HISA rate beats inflation
- Savings Hub: Best HISAs, GICs & Savings Accounts in Canada