High-Interest Savings Account (HISA)
Quick Definition
A savings account offering above-average interest rates, often at online banks.
Full Explanation
A High-Interest Savings Account (HISA) offers significantly higher interest rates than standard savings accounts, making them ideal for emergency funds and short-term savings goals. In Canada, online banks and credit unions typically offer the best HISA rates (1%–5%+ depending on economic conditions), compared to major bank HISA rates that can be as low as 0.01%–0.05%. HISAs are CDIC-insured up to $100,000 per category. Popular Canadian HISA providers include EQ Bank, Oaken Financial, Simplii Financial, and Tangerine.
Related Terms
Emergency Fund
A liquid savings reserve covering 3–6 months of living expenses for unexpected events.
TFSA (Tax-Free Savings Account)
A flexible registered account where investment growth and withdrawals are completely tax-free.
CDIC (Canada Deposit Insurance Corporation)
Federal insurance protecting bank deposits up to $100,000 per depositor category.
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