A worker shovels snow in front of the Bank of Canada in Ottawa on Dec. 10, 2025.Sean Kilpatrick/The Canadian Press
The Bank of Canada’s key policy rate and the prime rate at major banks are on hold, while market-implied expectations for future policy rates are currently pricing in a quarter-point increase toward the end of 2026.
In this stable environment, promotional high-interest savings accounts continue to dominate short-term returns, while longer-term GICs from smaller, CDIC-insured institutions still offer the most attractive locked-in rates.
The best savings account promotional rate is 4.65 per cent, from the Scotiabank Momentum Plus account and available for three months after which rates typically fall sharply. RBC and CIBC are offering 4.60 per cent, but limit that rate to three months.
Among non-promotional high-interest savings accounts, Saven Financial offers the highest rate at 2.85 per cent. The second-highest rate of 2.80 per cent is from Oaken Financial.
These rates offered by FirstOntario Credit Union – through its Saven Financial brand – and by Home Bank – through Oaken Financial – underline the importance of shopping around.
The relatively high continuing savings rates offered by institutions such as Saven and Oaken are not a sign of stress, but reflect their funding models. Unlike Canada’s largest banks, which maintain sizable securities portfolios and diversified funding sources, these lenders are structured to fund their loan books primarily through retail deposits and GICs.
As a result, they are willing to pay a modest premium over the Bank of Canada’s overnight rate in exchange for stable, insured funding, a strategy reinforced by banking liquidity rules that favour retail deposits over short-term wholesale borrowing.
While promotional savings accounts remain attractive for short-term cash, investors willing to lock in funds can still find compelling value in the GIC market. EQ Bank currently offers the highest five-year GIC rate at 3.85 per cent, followed by a group of CDIC- and provincially insured lenders offering 3.8 per cent.
On shorter terms, top rates reach 3.75 per cent for two-year GICs and 3.8 per cent for three-year terms, with many of these rates also available in registered accounts such as TFSAs and RRSPs.
Interest rates are provided by WOWA.ca, which gathers, aggregates and freely disseminates data on mortgage rates, savings accounts, and GIC rates from 50+ Canadian financial institutions.
Ali Nassimi, PhD, is a writer and content developer at WOWA.ca, a Canadian personal finance platform.