High interest
savings account

The high interest savings account is for savers who are looking for a higher return than a traditional savings account would provide. It’s ideal for risk-free saving for a big purchase or to keep as an emergency fund, as it allows you to accumulate interest and have access to your money at any time.

The interest rate for high interest savings accounts is applied to the full balance of your account. It is calculated daily but paid monthly.

Ideally, you shouldn’t use a high interest savings account for your day-to-day banking. The purpose of this type of account is to let your money grow risk free.

Yes, it is possible to have several HISA accounts. For example, you could have one registered in an RRSP and another registered in a TFSA.

No, there are no opening or closing fees.

You can ask your advisor to make the transfer or you can make a contribution directly using the iA Mobile app or My Client Space.

To make a withdrawal, all you need to do is contact your advisor and make a request.

Note that if your HISA is registered in an RRSP, the withdrawals will be added to your taxable income and you’ll have to pay tax on them.

There is no minimum age to open a non-registered account. However, there may be a minimum or maximum age for opening a registered account. For example, you must be 18 or older if you want your high interest savings account to be registered as a TFSA.

There is no minimum investment required.

A HISA offers better returns thanks to higher rates than a traditional savings account.

Yes, however, interest is calculated daily and paid monthly.

There are no management fees for the high interest savings account.

Yes, it is possible to open a high interest savings account with another account holder, such as a spouse.

You can make withdrawals at any time with no penalties. However, if your high interest savings account is registered as an RRSP or an FHSA you should be aware that non-qualifying withdrawals from these plans can have tax implications.

Interest accumulated in your account is added to your taxable income in the case of non-registered savings. If your account is in a registered plan, such as an RRSP, TFSA or TFSA, it will benefit from the tax advantages associated with the plan and returns will not be taxable.

These benefits are possible through the designation of a beneficiary, which allows for a transfer of assets without going through the normal estate settlement process in the event of death.

In the event of the death of a person with a HISA, the amounts invested are therefore paid directly to the designated beneficiary(ies). Settlement is fast and free of charge. Conversely, the normal estate settlement process can be lengthy and costly.

The capital paid can help relatives cover financial commitments for the deceased without having to compromise their personal finances while waiting for the estate to be settled.

As with most life insurance products and segregated funds, your investments in a high interest savings account can be protected from creditors.

For this coverage to be valid, however, you must ensure that:

• At least one “preferred” or irrevocable beneficiary was designated
• Your investments must be made in good faith, without any intention of fraud towards potential creditors

Please also note that if you declare bankruptcy within five years of opening a high interest savings account and it is proven that you would not have been able to repay your debts without the transferred funds, the coverage may be invalidated.