High Interest Savings Accounts: What You Should Know

Have you been considering opening a high-interest savings account? There certainly are many benefits, unlike other savings accounts. Yet there are some key aspects that you should keep in mind. Examining precisely what a high savings account is and what it offers will help you make your decision.

What is a High-Interest Savings Account?

High-interest savings accounts overall pay more than traditional ones. Not only this, yet you can earn a much more significant increase in earnings since it is not connected to a chequing account. The utilization of a high-interest savings account is much better as well since you have many more options with your money.

The Advantages of a High-Interest Savings Account

Earning Interest

Regular savings accounts earn you an average of 0.13% interest. However, unlike a regular savings account, a high-interest account has a compound daily interest. For this reason, you are earning over 1% interest. This is certainly a much higher rate, which will earn a higher amount.

Accessible at Any Time

There are always circumstances where you need to use some of your savings. In this case, trying to take out money from a regular savings account can be a struggle. Depending on the account, getting the funds out of your account can be quite the process. With a high-interest savings account, though, you avoid this entire hassle. The account is always open for you to tap into when needed. This eliminates much stress and tension when handling your finances.

Transfer Between Accounts

If you are used to transferring between savings accounts, then you know the inconvenience of it. Unless the savings account is linked to your chequing account, it can be time-consuming to move funds around. With some savings accounts, you may have to go directly to your bank to get the funds transferred to another account. With a high-interest savings account, though, you have the option to move money from one account to another quickly. You can do this easily from your phone, and you do not have to be bothered with the entire process of going to your bank.


Similar to the previous point, with a high-interest account, you have the freedom to deposit into the account at any time. Some savings accounts have a scheduled deposit, which follows a strict period and amount. This can be convenient for RESPs and similar purposes, yet it is not worthwhile if you want to deposit into the account at various times. Being able to deposit into the account whenever opens a much broader way for you to finance and handle your money.

Online Management

Although many banks provide options to have your savings accounts online, they can be infrequent. With a high-interest savings account, they can typically be managed online through your bank’s website or app. Instead of worrying about going to your bank every time you need to handle your account, this option provides you with much more freedom in managing your finances.

There are many significant advantages to opening a high-interest savings account. If you have been considering opening one, you now know that it is a substantial financial choice.


-Gravier, Elizabeth (2022). Looking For a Safe Spot Place to Stash Your Cash? The Pros and Cons of Keeping Your Money in a High-Yield Savings Account. CNBC. Retrieved from


-Karl, Sabrina (2021). What is a High-Yield Savings Account? Investopedia. Retreived from