RBC's High-Interest Savings Account Options

RBC (Royal Bank of Canada) offers high-interest savings accounts through two main products: the RBC High-Interest eSavings Account and the RBC Signature Savings Account. The eSavings account is their primary high-yield option and is available to Canadian residents. The rate on both accounts changes regularly and is set by RBC based on market conditions, so the current rate you see when you check their website or call is the one that applies to new deposits.

RBC does not publish a fixed rate schedule months in advance. Instead, rates are posted on their website and updated as RBC changes them. You can view the current rate by visiting RBC.com, calling 1-800-769-2511, or visiting a branch. The rate applies to all balances in the account once you open it, though RBC may change the rate at any time without advance notice.

Unlike some competitors, RBC's high-interest savings accounts do not have monthly fees, account minimums, or restrictions on how often you withdraw money. You can move money in and out as needed without penalty.

Key Takeaways

  • RBC's High-Interest eSavings Account is their main high-yield savings product and is available online to Canadian residents with a valid SIN and Canadian address.
  • The interest rate changes regularly and is not locked in; you can check the current rate on RBC.com or by calling their customer service line.
  • There are no monthly fees, minimum balances, or withdrawal limits on RBC high-interest savings accounts.
  • Interest is calculated daily and deposited monthly, so you earn interest on interest each month.
  • RBC's rates are competitive but vary compared to other banks and online-only institutions, so comparing rates across providers before opening an account makes sense.

How RBC's Rate Compares to Other Banks

RBC's high-interest savings rate is typically lower than rates offered by online-only banks and some credit unions, but higher than the rates on standard savings accounts at most traditional banks. The gap between RBC and online competitors can range from 0.5% to 1.5% APY depending on the month, because online banks have lower overhead costs and pass some savings to customers through higher rates.

To know whether RBC's current rate is competitive for you, compare it directly to other providers at the time you are ready to open an account. Rates change frequently, and a bank that offers a higher rate one month may not the next. Check rates at online banks like EQ Bank, Tangerine, and Simplii Financial, as well as at other major banks like TD, Scotiabank, and BMO.

If you already bank with RBC and value the convenience of managing your savings in the same place as your chequing account, the rate difference may be worth it to you. If maximizing interest is your only goal, an online-only bank often pays more.

How Interest Is Calculated and Paid

RBC calculates interest on your high-interest savings account daily, meaning they look at your balance every day and add a small amount of interest based on that day's balance and the annual rate. At the end of each month, all the daily interest is added together and deposited into your account. This is called compounding monthly.

For example, if your account holds $10,000 and the rate is 4.5% APY, you earn roughly $37.50 in interest that month (before tax). That $37.50 is added to your balance, so the next month you earn interest on $10,037.50. Over time, earning interest on your interest adds up, especially if you leave money in the account for years.

Interest earned in a non-registered account (not a TFSA or RRSP) is taxable income. RBC does not withhold tax automatically; you report the interest on your tax return. If your account is registered as a TFSA or RRSP, the interest grows tax-free.

Opening an RBC High-Interest Savings Account

You can open an RBC High-Interest eSavings Account online, by phone, or in person at an RBC branch. To open online, you will need a valid Canadian SIN, a Canadian mailing address, and a government-issued ID. The process typically takes 10 to 15 minutes and you can start using the account the same day.

If you already have an RBC chequing account, opening a savings account is faster because RBC already has your information on file. You can link the two accounts so money moves between them instantly at no cost.

If you do not have an RBC account yet, you can open both a chequing and savings account at the same time. You will need to fund the account with an initial deposit; RBC does not require a minimum, but you must deposit something to activate it.

Accessing Your Money and Moving It Out

RBC high-interest savings accounts are fully liquid, meaning you can withdraw money whenever you need it. You can transfer money out to another bank account, withdraw cash at an RBC ATM or branch, or use online banking to move money to a linked account at another bank.

Transfers to accounts at other banks typically take one to two business days. Withdrawals at an RBC ATM are instant. If you need the money urgently, ATM withdrawal is the fastest option.

There is no limit on how many times you can withdraw or transfer money per month. Some older savings account rules capped withdrawals at six per month, but that rule no longer applies to most accounts in Canada.

Tax Implications and Registered Accounts

If you hold your high-interest savings account as a regular (non-registered) account, you must report the interest you earn as income on your tax return. The amount is taxable at your marginal tax rate, which varies by province and your total income.

If you want to earn interest without paying tax on it, you can open an RBC High-Interest eSavings Account as a TFSA (Tax-Free Savings Account) or RRSP (Registered Retirement Savings Plan). Both are registered accounts where interest and growth are not taxed. You have annual contribution limits for each type, so check your CRA account to see how much room you have before opening one.

A TFSA is flexible: you can withdraw money anytime without penalty and the contribution room comes back the next year. An RRSP is for retirement savings; withdrawals are taxed as income and you lose the contribution room permanently.

When an RBC High-Interest Savings Account Makes Sense

An RBC high-interest savings account is a good fit if you want a safe place to hold money you may need within the next few years, you already bank with RBC, or you prefer the security of a major bank over an online-only institution. It is also useful as a holding account while you decide where to invest money longer-term.

It is not the right choice if you are looking for the absolute highest rate available, because online banks typically pay more. It is also not suitable for money you will not need for 10+ years, because GICs (may provide Investment Certificates) and other fixed-income investments often pay more over longer periods.

If you have a large sum to deposit, ask RBC about their GIC rates as well. Sometimes a GIC locked in for one or two years pays more than a savings account, and the difference compounds significantly on large balances.

Frequently Asked Questions

Can I open an RBC high-interest savings account if I do not have an RBC chequing account?

Yes. You can open a savings account on its own without having a chequing account. You will need to provide identification and a Canadian address, and make an initial deposit to activate the account. Many people open just a savings account with RBC and keep their chequing account elsewhere.

What happens to my interest rate if RBC lowers it?

Your rate changes automatically when RBC changes it. You do not have to do anything, but your interest earnings will be lower going forward. If the rate drops significantly, you can move your money to another bank, but there is no penalty for doing so with a savings account.

Is my money safe in an RBC savings account?

Yes. RBC is a member of the CDIC (Canada Deposit Insurance Corporation), which insures deposits up to $100,000 per account holder per institution. Your savings account balance is covered up to that limit. If you have more than $100,000, only the first $100,000 is insured.

Can I use a TFSA with an RBC high-interest savings account?

Yes. You can open an RBC High-Interest eSavings Account as a TFSA. Interest earned in a TFSA is not taxed, and you can withdraw money anytime without losing the contribution room permanently. Check your CRA account to see how much TFSA contribution room you have available.

How do I check my current interest rate?

Visit RBC.com, log into your online banking account, or call 1-800-769-2511. The rate displayed is the current rate that applies to new deposits and existing balances. Rates are updated regularly, so check before opening an account if you want to compare it to other banks.