What is a high interest savings account?
A high interest savings account (HISA) allows you to earn higher returns on your savings with a higher interest rate than a chequing account.
Simple and accessible, this option is ideal for people who want to save risk free. For example, you can use it to build an emergency fund, save for a project or protect your money from market volatility until the time is right to invest.
At iA, opening a high interest savings account requires no minimum investment and you can access your savings at any time. Our HISA also includes all the benefits available with segregated funds, such as quick settlement in the event of death and possible creditor protection.
- Offers higher returns than a chequing account
- Reduces the risks associated with market volatility
- Available in all types of registration (RRSP, TFSA, etc.)
- Improves portfolio diversification
- An excellent option for building an emergency fund
Benefits specific to iA’s HISA
- Can provide protection against creditors
- No estate settlement costs
- Allows for quick and easy payment in the event of death
- No minimum investment required
- Allows withdrawals at any time and at no cost
- No management fees
How to invest in a high interest savings account?
Speak with an advisor
Contact a financial security advisor to discuss your investment goals. They could help you determine your investor profile and do a needs analysis.Find an advisor
Open an account
Following analysis of your financial situation and needs, your advisor will propose the investment vehicle best suited to your situation: RRSP, TFSA, non-registered, etcDiscover the savings plans
Adapt your savings strategy
Reassess your financial goals periodically with your advisor. This will ensure that your savings strategy is in line with your changing needs.See rates
There is no minimum age to open a non-registered contract. However, there may be a minimum or maximum age for opening a registered contract. For example, you must be 18 or older if you want your high interest savings account (HISA) to be registered as a tax-free savings account (TFSA).
Specifications regarding benefits
No estate settlement costs and quick payment in the event of death
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.