What is a HISA in Canada?

A HISA (High-Interest Savings Account) is a savings account that pays a meaningfully higher interest rate than a standard bank savings account, while keeping your money fully accessible at any time. At the Big Five banks, standard savings accounts pay 0.01–0.10%; online banks like EQ Bank, Oaken Financial, and Manulife Bank consistently pay 3.25–4.25% on the same type of deposit. Interest is calculated daily on your closing balance and paid monthly, and you can withdraw without penalty at any time. There is no lock-in period, unlike a GIC.

Are HISAs safe in Canada?

Yes. HISA deposits at CDIC member institutions are insured up to $100,000 per eligible deposit category per institution. With separate categories for personal deposits, TFSA, RRSP, RRIF, FHSA, joint accounts, and trust accounts, effective total coverage at a single CDIC member can exceed $700,000. Credit union HISA deposits are covered by provincial deposit insurance — most major provinces (Ontario, BC, Alberta, Quebec) provide unlimited coverage with no cap. Neither a bank failure nor a market downturn can reduce your HISA balance; the principal is fully guaranteed.

Should I put my emergency fund in a HISA?

Yes. A HISA is the correct account for an emergency fund. Emergency money needs to be accessible within one to two business days — a GIC may not permit early withdrawal at all, and even a cashable GIC requires a 30–90 day minimum holding period. A HISA at a top-rate online bank (EQ Bank, Oaken Financial) earns 3.25–4.25% while remaining fully liquid. Holding the HISA inside a TFSA makes the interest completely tax-free, which is the ideal structure for most Canadians who have available TFSA contribution room.

What is the difference between a HISA and a GIC?

A HISA is fully liquid — you can withdraw any amount at any time with no penalty, and the interest rate is variable (it can rise or fall with the Bank of Canada overnight rate). A GIC locks your money in for a fixed term (typically 1 to 5 years) at a guaranteed rate that does not change regardless of what rates do during that period. GICs pay more because you are giving up liquidity in exchange for certainty. The practical guidance: keep your emergency fund and any savings with an uncertain timeline in a HISA; move money with a defined future need date into a non-redeemable GIC to capture the rate premium.

How is HISA interest taxed in Canada?

HISA interest earned in a non-registered account is fully taxable as ordinary income at your marginal rate — the same as employment income, and the least tax-efficient income type in Canada. At a 43% marginal rate in Ontario, a 4% HISA effectively earns approximately 2.28% after tax. Holding your HISA inside a TFSA eliminates this tax entirely — the full 4% is yours to keep. Inside an RRSP, HISA interest is tax-deferred (no tax until withdrawal). The after-tax difference between a TFSA HISA and a non-registered HISA — 1.72 percentage points at a 43% marginal rate — is more significant than the rate difference between most HISA providers.

Can I have a HISA inside a TFSA?

Yes. Most online banks and credit unions offer a TFSA HISA — a HISA held inside a Tax-Free Savings Account. EQ Bank, Oaken Financial, Manulife Bank, Tangerine, Simplii Financial, and Wealthsimple Cash all offer TFSA HISAs paying competitive rates. Interest earned inside a TFSA is completely tax-free with no reporting required. The TFSA contribution limit for 2026 is $7,000 (plus any unused room from prior years). Always prioritise filling your TFSA HISA before holding HISA deposits in a non-registered account.

What is the best HISA rate in Canada right now?

As of August 2026, the highest consistent (non-promotional) HISA rates are offered by EQ Bank (~3.75–4.00%), Oaken Financial (~3.90–4.25%), and Manulife Bank (~3.50–3.75%). These rates are non-promotional — they do not expire after 90 days. Promotional offers from Tangerine, Simplii, or the Big Five banks can temporarily offer higher rates for new deposits, but always check the standard rate that applies after the promotion ends. Online banks consistently outperform the Big Five by 2–4 percentage points on non-promotional HISA rates. See the current comparison: Best HISA Rates Canada.

Is there a limit to how much I can keep in a HISA?

There is no deposit limit for a HISA itself. However, CDIC insurance only covers up to $100,000 per depositor per eligible category at a single member institution. For amounts above $100,000 in non-registered savings, consider spreading across multiple CDIC member institutions or using a credit union with unlimited provincial deposit insurance. For TFSA, RRSP, and FHSA HISAs, the relevant limit is your registered account contribution room — not the HISA balance limit — since CDIC treats each registered category separately. A single individual can have $100,000 in non-registered deposits, $100,000 in a TFSA, and $100,000 in an RRSP all at one CDIC member institution, each fully covered.

HISA Guide Canada 2026: High-Interest Savings Accounts Explained

A high-interest savings account (HISA) is the simplest and most accessible way to earn meaningful interest on money you need to keep liquid. Unlike a GIC, there is no lock-in period — you deposit and withdraw freely while earning 3–4%+ on your balance. Unlike a standard Big Five bank savings account paying 0.01%, an online HISA keeps pace with inflation and generates real purchasing-power gains on your idle cash.

Every Canadian should have at least one HISA: for an emergency fund, for short-term savings goals with uncertain timelines, and for cash held between investments. The product is identical across institutions in terms of what it does — daily interest on your balance, full liquidity, CDIC or provincial deposit insurance — but the rate varies enormously. A Big Five bank HISA at 0.01% on a $30,000 emergency fund earns $3 per year; an EQ Bank HISA at 4.00% on the same balance earns $1,200.

The single most impactful decision is account placement. HISA interest is taxed at your full marginal rate in a non-registered account — the least tax-efficient income type in Canada. The same 4% HISA inside a TFSA produces 4% after tax; inside a non-registered account for an Ontario resident at the top marginal rate, it produces roughly 2.28%. If you have TFSA room, opening a TFSA HISA is almost always the right structure.

How HISAs Work

When you deposit money in a HISA, interest accrues daily on your closing balance and is paid monthly. The rate is variable — institutions can increase or decrease it at any time, typically in response to changes in the Bank of Canada overnight rate. Unlike promotional savings accounts, which revert to a low standard rate after a set period, most online bank HISAs pay the same advertised rate consistently without expiry dates.

Feature	Typical Details
Interest rate	Variable — changes with Bank of Canada and institution policy
Access to money	Any business day — no lock-in, no penalty
Minimum balance	$0 at most online banks
Interest calculation	Daily on closing balance, paid monthly
CDIC insurance	Up to $100,000 per eligible deposit category
Account fees	$0 at most online banks
Transfer time	1–2 business days (EFT); instant within same institution

Transfers between a HISA and a linked chequing account at another institution typically settle via EFT in one to two business days. Transfers within the same institution (e.g., EQ Bank HISA to EQ Bank chequing) are instant. Plan around this settlement time for any emergency fund withdrawals.

HISA Rates: Online Banks vs the Big Five

The rate gap between the Big Five banks and online banks is the single most important HISA fact for Canadians to understand. It is not a small difference — it is the difference between earning $3 and $1,200 per year on a $30,000 balance.

Institution Type	Typical Non-Promotional HISA Rate
Big Five banks (RBC, TD, BMO, Scotiabank, CIBC)	0.01–1.50%
Online banks (EQ Bank, Oaken, Manulife, Simplii)	2.50–4.25%
Credit unions	1.50–3.50%

Online banks pay more because they do not carry the overhead of physical branch networks, large ATM fleets, and retail staff. That cost saving is passed to depositors as higher rates. The Big Five banks maintain low HISA rates because most of their customers are inert — they keep savings in the same institution as their chequing account and do not comparison-shop. Moving your savings to an online HISA while keeping your chequing account at your main bank takes 15 minutes and costs nothing.

For current rates across all institutions: Best HISA Rates Canada

HISA in Registered vs Non-Registered Accounts

Account placement is as important as rate selection. Because HISA interest is taxed at your full marginal rate, the after-tax return on a non-registered HISA is significantly lower than the advertised rate for anyone in a moderate or high tax bracket.

Account Type	Tax Treatment	After-Tax Return on 4.00% HISA (43% marginal bracket)
TFSA	Tax-free — no reporting required	4.00%
FHSA	Tax-free growth; deductible contribution	4.00% effective
RRSP	Tax-deferred — taxed on withdrawal	Depends on withdrawal bracket
Non-registered	Fully taxable at marginal rate (T5 slip issued)	~2.28%

The priority order is straightforward: TFSA first, FHSA if you are saving for a first home, RRSP if you expect a lower tax bracket in retirement, non-registered last. The 1.72 percentage point after-tax difference between a TFSA HISA and a non-registered HISA at a 43% marginal rate dwarfs the difference between any two HISA providers at the same institution type.

TFSA HISA is the ideal structure for most Canadians. Interest is completely tax-free, there are no reporting requirements, and withdrawals do not create a tax bill. EQ Bank, Oaken Financial, Manulife Bank, Tangerine, Simplii Financial, and Wealthsimple Cash all offer competitive TFSA HISAs. The 2026 TFSA annual contribution limit is $7,000; unused room from prior years (dating to 2009 for anyone 18+) carries forward.

What to Use a HISA For

A HISA is the correct account for any money that needs to remain liquid — where a GIC’s lock-in would be inappropriate — but where earning next to nothing in a standard savings account is also unacceptable.

Emergency fund (3–6 months of expenses) is the most important HISA use case. This money must be accessible within one to two business days in an unexpected event — job loss, car repair, medical expense. A GIC is structurally wrong for emergency savings because non-redeemable GICs cannot be cashed early at all, and cashable GICs require a 30–90 day minimum holding period. A HISA at 4.00% on a $20,000 emergency fund earns $800 per year — not nothing.

Down payment savings over 1–2 years where the purchase date is not firmly set belongs in a HISA. When you have a firm purchase date (for example, closing on a property in 14 months), move the funds to a GIC for the defined period; until then, the HISA preserves flexibility.

Tax instalments and government obligations — HST remittances, corporate tax instalments, CRA instalment payments — should be held in a HISA from the time they are set aside to the payment due date. The money is accessible when needed, and it earns interest in the interim.

Cash between investments — capital from selling investments, income waiting for deployment, or lump sums awaiting a GIC purchase — earns at full HISA rates while you decide on the next step.

Short-term savings goals (vacation, home renovation, vehicle) where you are not sure exactly when you will spend belong in a HISA rather than a GIC.

Savings Purpose	HISA or GIC?	Why
Emergency fund	HISA	Must be accessible immediately
Down payment (date uncertain)	HISA	Timeline flexibility needed
Down payment (date confirmed)	GIC	Lock in higher rate for defined period
Tax instalments	HISA	Pay on government schedule, not maturity date
Cash between investments	HISA	No lock-in needed; full rate on idle capital
Retirement conservative allocation	GIC ladder in RRSP/TFSA	Annual maturities, higher average rate

HISA vs Other Savings Options

Product	Approximate Rate (2026)	Liquidity	Principal Risk
Big Five standard savings	0.01–1.50%	Immediate	None
Online HISA	3.25–4.25%	Immediate (1–2 day EFT)	None
Cashable GIC	3.50–3.90%	After 30–90 day minimum	None
Non-redeemable 1-year GIC	3.90–4.25%	Locked until maturity	None
Money market fund	~3.50–4.00%	T+1 settlement	Minimal

The HISA sits between a standard savings account (full liquidity, low rate) and a non-redeemable GIC (full rate, zero liquidity). A cashable GIC occupies the middle ground but with a minimum lock-up period before early withdrawal is permitted. For most liquid savings, the online HISA is the right tool — the rate premium over a standard savings account is enormous, and the rate sacrifice versus a non-redeemable GIC is modest in exchange for full liquidity.

For a detailed comparison: GIC vs HISA and GIC vs Bond ETF vs HISA
For a full breakdown of GICs, see the GIC Guide Canada.

Where to Open a HISA in Canada

Provider	Rate Tier	TFSA HISA	Minimum	CDIC Member
EQ Bank	Top tier	Yes	$0	Yes
Oaken Financial	Top tier	Yes	$1	Yes
Manulife Bank	Competitive	Yes	$0	Yes
Tangerine	Mid tier (promo rates for new deposits)	Yes	$0	Yes
Simplii Financial	Mid tier	Yes	$0	Yes
Wealthsimple Cash	Competitive	Yes	$0	Yes
KOHO	Competitive	No	$0	No (not a direct bank; deposits at Peoples Trust)
Big Five banks	Low	Yes	$0	Yes

There is no restriction on holding HISAs at multiple institutions. Opening a second HISA at EQ Bank or Oaken while keeping your chequing at a Big Five bank is the most common rate optimisation available to Canadian savers — it takes 15 minutes, earns thousands per year more on large balances, and costs nothing. Spreading deposits across multiple CDIC members also maximises total insured coverage above $100,000.

KOHO is included here for completeness: deposits are held at Peoples Trust (a CDIC member) rather than at KOHO directly, so CDIC coverage applies through the underlying institution, but KOHO itself is a prepaid card product rather than a bank.

CDIC and Deposit Insurance

HISA deposits at CDIC member institutions are insured up to $100,000 per eligible deposit category. The categories are treated separately, giving effective total coverage well above $100,000 at a single institution:

Personal deposits (non-registered): $100,000
TFSA: $100,000
RRSP: $100,000
RRIF: $100,000
FHSA: $100,000
Joint accounts: $100,000
Trust accounts: $100,000 per beneficiary

A single individual with a HISA in each registered and non-registered category at one CDIC member can have over $700,000 fully insured. For balances above these limits in any single category, spreading across multiple CDIC member institutions or using a credit union (where most major provinces offer unlimited coverage) is the appropriate strategy.

Full details: CDIC Deposit Insurance Explained