RBC does not currently offer a dedicated high yield savings account

Royal Bank of Canada (RBC) does not market a product specifically labeled as a high yield savings account. Their standard savings accounts—including the RBC Savings Account and RBC eSpeed Savings Account—pay rates that are substantially lower than what you would find at online banks or credit unions focused on savings rates.

RBC's savings rates vary by account type and deposit amount, but as of recent years, their standard savings accounts have paid between 0.01% and 0.50% APY depending on the product and your balance tier. This is significantly below the rates offered by online-only banks, which often pay 4% to 5% APY on high yield savings accounts. The gap matters: on a $10,000 deposit, the difference between 0.25% and 4.5% is roughly $425 per year in lost interest.

If you bank with RBC and want higher returns on savings, you have two realistic paths: move money to a separate high yield savings account elsewhere, or explore RBC's other interest-bearing products like GICs (may provide Investment Certificates) or money market funds.

Key Takeaways

  • RBC's standard savings accounts pay significantly less than high yield savings accounts at online banks, typically between 0.01% and 0.50% APY.
  • RBC does offer GICs and money market funds that may pay higher rates than savings accounts, though these lock up your money or carry different risks.
  • If you want a true high yield savings account, you will need to open one at a different bank—online banks and some credit unions offer rates between 4% and 5% APY.
  • Keeping a small amount in an RBC savings account for daily banking while holding larger savings elsewhere is a common strategy for RBC customers.

What RBC savings accounts actually pay

RBC offers several savings products, but none are positioned as high yield. The RBC Savings Account is their basic option and typically pays the lowest rate. The RBC eSpeed Savings Account, their online savings product, pays slightly more but still remains well below market rates for high yield accounts.

Rates depend on your balance. RBC uses tiered pricing, meaning you earn a higher rate on balances above certain thresholds—for example, a higher rate on amounts over $100,000 than on amounts under $10,000. Even at the highest tier, RBC's rates do not approach what online banks pay on their standard high yield products.

RBC also offers promotional rates from time to time, particularly on new accounts or during specific periods. These rates are temporary and revert to standard rates after the promotional period ends, usually three to six months. Check RBC's website or call your local branch to see if any promotional rates are currently available, but do not assume a promotional rate will continue.

GICs and money market funds as alternatives

If you want to earn more than a savings account pays but prefer to stay with RBC, GICs (may provide Investment Certificates) are the most straightforward option. A GIC locks your money for a set term—typically three months to five years—and pays a fixed rate that is higher than savings accounts. The trade-off is that you cannot access the money without penalty until the term ends.

RBC GIC rates vary by term length. Shorter terms (three to six months) pay less; longer terms (two to five years) pay more. Current GIC rates at RBC are typically higher than their savings accounts but lower than high yield savings accounts at online banks. The advantage is certainty: you know exactly what you will earn, and the rate does not change.

RBC also offers money market funds and other investment products through their investment services. These carry market risk—your balance can go down as well as up—but may pay higher returns over time. These are not savings accounts and are not insured by the Canada Deposit Insurance Corporation (CDIC) in the same way deposits are, so they are better suited to money you do not need immediately.

How to compare RBC to online high yield savings accounts

Online banks typically offer high yield savings accounts with rates between 4% and 5% APY (or the Canadian equivalent, which varies). These banks keep rates high because they have lower overhead costs than traditional banks with physical branches. They pass those savings to customers through higher interest rates.

To compare fairly, look at the APY or annual percentage yield offered, not just the base rate. Some banks advertise a promotional rate that applies only to new customers or for a limited time. Read the fine print to see what the rate will be after the promotional period ends. Also check whether the account has monthly fees, minimum balance requirements, or restrictions on how often you can withdraw money.

If you move money to a high yield savings account at another bank, you can still keep a small amount at RBC for daily banking and bill payments. Many people use this hybrid approach: a checking account at their main bank for convenience, and a high yield savings account elsewhere for money they want to grow.

How to move money from RBC to another bank

Opening a high yield savings account at another bank is straightforward. Most online banks let you open an account in minutes through their website. You will need your Social Insurance Number (SIN), a government-issued ID, and proof of address (usually a recent utility bill or bank statement).

To transfer money from RBC to your new account, you have two options. The first is to link your RBC account to the new bank and initiate an electronic transfer (ACH or EFT). This usually takes one to three business days. The second is to withdraw cash from RBC and deposit it at the new bank, though this is slower and less secure for large amounts.

You do not need to close your RBC account to open a high yield savings account elsewhere. Keeping both open gives you flexibility: you can use RBC for everyday banking and the high yield account for savings you want to grow.

Why RBC's rates are lower than online banks

RBC is a full-service bank with physical branches, customer service centers, and significant operating costs. Those costs are built into their pricing, which includes lower interest rates on savings accounts. They make money partly by paying you less interest on deposits and charging you more on loans.

Online banks have no branches and minimal staff, so their overhead is much lower. They can afford to pay higher rates on savings accounts because they spend less to operate. This is not a sign that online banks are risky—most are insured by the CDIC (in Canada) or the FDIC (in the United States) just like traditional banks. The difference is efficiency, not safety.

RBC's value proposition is convenience and service, not interest rates. If you value having a physical branch, a relationship manager, or integrated banking services, RBC may be worth the lower rate. If your priority is maximizing interest earned on savings, an online bank will serve you better.

Frequently Asked Questions

Can I get a higher rate if I have a large balance at RBC?

RBC uses tiered rates, so larger balances earn slightly more than smaller ones. However, even at the highest tier, RBC's rates remain well below what online high yield savings accounts pay. If you have a large amount to save, the difference between RBC's top rate and an online bank's rate is substantial enough to justify moving the money.

What happens to my money if I move it to an online bank?

Your money is insured by the CDIC up to $100,000 per account holder per institution, just as it is at RBC. Online banks are regulated by the same authorities as traditional banks. The main difference is that you cannot walk into a branch—all transactions happen online or by phone.

Will RBC ever offer a high yield savings account?

RBC has not announced plans to launch a high yield savings account. Large traditional banks typically do not compete on interest rates because their business model relies on branch networks and full-service offerings. If this changes, RBC would likely announce it on their website or through their branches.

Is it worth keeping money at RBC if the rate is so low?

Many people keep a small amount at RBC for daily banking and bill payments while holding larger savings elsewhere. This gives you the convenience of a physical branch and integrated banking without sacrificing too much interest on the bulk of your savings.

How do I know which online bank to choose for a high yield savings account?

Compare the current APY, any fees, minimum balance requirements, and withdrawal limits. Check whether the rate is promotional or permanent. Read reviews about customer service and ease of use. Most online banks offer similar rates, so the choice often comes down to which interface you prefer and whether they offer other products you might need.