What Exactly Is HISA?

A HISA is a safe place to store your money and earn more interest over time. Unlike regular savings account with interest rates at almost 0%, HISAs generally offer substantially higher interest rates, sometimes up to 2% or possibly more. However, not all HISAs are the same. You’ll need to compare the features of the products provided by various financial institutions to make sure the account is ideal for you.

The main factors you should consider

While looking for the best HISA Canada, consider how frequently you’ll be using the account and what features you will need. How frequently will you make transactions, and are there any charges? Is there a minimum balance necessary? How is the interest calculated? Here are some of the main factors to consider before opening a HISA:

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Rates

Various financial institutions provide different interest rates depending on the services selected and the features they offer. If the bank has a branch at every corner of the country, stays open every day, and pays its staff to be ready and waiting to answer any queries you have, you might find yourself paying extra charges. Financial institutions with less overhead charges might provide more competitive rates. Understand your requirements and select the highest HISA Canada through a bank that suits your financial needs. No one wants to pay for services they will never use. The entire point of opening a savings account is to save, not spend.

Minimum deposit

Some financial institutions need you to deposit a minimum balance and keep it there. If you are able to keep at least the minimum balance in the account, you might get access to higher interest rates.

Monthly fees

Some financial institutions might charge monthly fees or fees according to service;however, others may offer unlimited access to your money free of cost. Consider how frequently you will access your money and the interest rate offered. Some fees might be worth the additional features and privileges offered through the account.

Age requirements

Most HISAs require that the account holder is at least 18 years of age. This may be different in your region.

Promotional rates

Some financial institutions provide promotional rates to get you through the door. Those rates, however, don’t last forever. Select an institution that provides great rates long after the welcome scheme expires. Interest rates of 2% are usually the best HISA in Canada.

Compound interest

Some financial institutions compound interest daily, and not monthly or yearly. Select an institution that will provide you maximum value for your money and reward you for regular deposits. You’ll end up with more return on your investment in the long run. This is what makes these accounts so beneficial and why you should give it a try at least once in your life.

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