Opening a savings account is easy in Canada. You can do it online, through a bank’s mobile app or at a bank branch. So whether you’re setting up an account for everyday savings, aiming for higher interest, or looking for tax benefits, follow these steps to make the process go smoothly. Here’s a breakdown of the key steps involved in opening a savings account.
Yes, you can easily open a savings account online with most banks and credit unions in Canada. Many financial institutions have streamlined the process, allowing you to open an account from the comfort of your home without visiting a branch.
All you need is access to a computer or smartphone and a stable internet connection. To begin, simply visit the bank’s website, choose the type of savings account you want, and fill out the online application form.
You’ll be asked to provide documentation such as a government-issued ID and proof of address. The entire process usually takes just a few minutes to complete.
These days, there are plenty of banks that allow you to open a savings account online. Below is a list of some of these banks that offer online savings accounts, along with their respective interest rates:
| Bank | Savings Account | Interest Rate | |
|---|---|---|---|
| EQ Bank | Notice Savings Account | 3.50% - 3.65% | |
| Simplii | High-Interest Savings Account | 6.25% for 5 months, 0.35% thereafter | |
| KOHO | High-Interest Savings Account | 5% | |
| Scotiabank | MomentumPLUS Savings Account | 5.5% for 3 months, 1% thereafter | |
| Tangerine | Savings Account | 6% for 5 months, then 0.30% thereafter | |
| NEO | High-Interest Savings Account | 4% | |
| RBC | High Interest eSavings | 5.4% for 3 months, 1.4% thereafter | |
| TD | TD High Interest Savings Account | 0% – 0.05% | |
| BMO | Savings Amplifier Account | 5.50% until October 31 , 1.55% thereafter | |
| CIBC | eAdvantage Savings Account | 5.4% for 3 months, 1.4% thereafter |
Here are the 6 steps to follow to open a savings account online:
The first step is to research and choose a bank, fintech or credit union that aligns with your financial goals. Compare factors like savings interest rates, fees, and minimum balance requirements to find the best option.
You can start by looking at well-known institutions (like RBC and Scotiabank) digital banks (like Tangerine, EQ Bank and Simplii) or consider your local credit unions.
Interestingly, some of the highest interest savings accounts available in Canada are not offered by the Big Banks, but instead offered by digital banks like EQ Bank and Simplii Financial.
Next, decide on the type of savings account you need. Basic savings accounts are ideal for storing money with modest interest, while high-interest savings accounts offer better returns but may have conditions. If you’re looking for tax advantages, consider a Tax-Free Savings Account (TFSA), which allows your money to grow without tax.
In most Canadian financial institutions, you can either provide two documents—one showing your name and address and another confirming your name and date of birth—or one document indicating your name and date of birth with verification from a bank customer or community member. These documents can include utility bills, a Canadian-issued ID, bank statements, and more.
Once you’ve selected a bank and gathered your documents, you can open the account either online or in person. Online banking portals typically guide you through the process, letting you upload documents and confirm your identity. If you prefer face-to-face interaction, you can visit a local branch and complete the process with the help of a bank representative.
After your account is approved, you’ll need to make an initial deposit to activate it. This can usually be done through a bank transfer from an existing account or by depositing cash or a cheque at a branch or ATM. Be sure to check if the bank has a minimum deposit requirement for your specific account type.
Finally, set up online and mobile banking to manage your savings easily. This will allow you to transfer funds, monitor transactions, and even automate savings. By enabling these features, you can track your financial progress and make the most of your savings account.
Simply follow the same steps for how to open a tax-free savings account (TFSA) as you would for a standard savings account. First, you’ll need to decide between financial institutions, such as banks, fintechs, credit unions, or insurance companies, that offer TFSAs.
Then follow the account’s online signup process. To set up your TFSA, like opening a savings account, you’ll need to provide your Social Insurance Number (SIN) and date of birth.
Your financial institution may request additional documents to verify your information. Upload the required documents, and then start saving once you’re approved.
You can open more than one TFSA, but remember that your total contributions across all accounts cannot exceed your annual contribution limit. Your contribution limits depend on what year you were born — you can find more information on your limit at Tax-Free Savings Account (TFSA), Guide for Individuals.
It’s crucial to provide accurate details—if the TFSA isn’t properly registered, any income earned will be subject to taxes, and you’ll have to report it on your income tax return. Once your account is registered, you’ll be able to enjoy tax-free growth on your contributions.
The process of opening a high-yield savings account in Canada is similar to opening a regular savings account, as mentioned above. Here are a few additional things to keep in mind:
Begin by comparing banks and financial institutions that offer high-yield savings accounts. Online banks like EQ Bank or Simplii Financial often provide higher interest rates than traditional banks. Be sure to check for fees, minimum balance requirements, and account restrictions before choosing the right option.
When choosing a high-yield savings account, competitive annual percentage yield (APY) is typically more appealing to users. A higher APY means your savings will grow faster, so compare the rates offered by different banks and credit unions. While searching, focus on institutions that have a solid reputation for reliability and customer service.
As with regular savings accounts, you’ll need to verify your identity with information requested by the bank like a government-issued ID and proof of address. These documents help verify your identity and allow the bank to report interest earned to the government.
Once you’ve chosen a high-yield account, the application process is similar—most accounts can be opened online. After approval, make your initial deposit, which will start earning interest based on the current rate.
The best savings account for you in Canada depends on your financial needs. For high interest rates and no fees, options like EQ Bank’s Notice Savings Account and KOHO Savings Account are popular choices.
Both offer competitive rates without monthly fees or minimum balance requirements, making them ideal for maximizing your savings.
Other great options include Simplii Financial’s High-Interest Savings Account, backed by CIBC, and the PC Money Account, which offers one of the top rates in the market.
When choosing the right account, focus on interest rates, fees, and your access needs. Each of these accounts offers different benefits, so pick the one that aligns with your goals.
Opening a savings account can be a smart way to grow your money securely while earning interest. It’s ideal for building an emergency fund or saving for short-term goals, such as a vacation or a big purchase.
If you’re looking to maximize your savings, consider options like high-yield savings accounts, which offer better interest rates, or Tax-Free Savings Accounts (TFSAs), where your savings grow tax-free.
In short, if you want a safe place to keep your money with the potential to earn interest, a savings account—especially a high-yield or TFSA—can be a great choice.
Before opening a savings account, there are several factors you should carefully consider to ensure you choose the right one for your financial goals. Here are the key points to keep in mind:
Depending on your goals, you may want to look for accounts offering competitive interest rates and a high APY, as these determine how fast your savings grow.
Look out for any fees, such as monthly maintenance fees, which can reduce the amount of interest you earn. Some banks waive these fees if you meet specific requirements, like maintaining a minimum balance.
While a savings account is meant for storing money, you’ll still want to access your funds easily if needed. Check whether the account comes with an ATM card, online banking options and whether you can transfer between accounts.
Ensure that the bank is CDIC-insured, meaning your deposits are protected up to $100,000 per depositor. This provides peace of mind that your money is safe, even in the event of a bank failure.
Look for helpful features like automatic transfers from checking accounts, mobile deposits, overdraft protection, and budgeting tools to simplify saving and managing your money.
A bank may decline to open a savings account for several valid reasons, including:
Opening a savings account is a smart step toward securing your financial future. Whether you’re looking for a basic savings account, a high-yield option or a TFSA for tax-free growth, the process is straightforward.
Remember to compare interest rates, fees and accessibility to find the best account for your needs. With the right savings account, you can safely store your money and reach your financial goals.
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