Traditional banks like RBC are far behind online banks in terms of high-interest savings rates.
But for people with complex situations or higher tax brackets, traditional banks remain an alternative banking option.
This article covers everything you need to know about the RBC High-Interest eSavings Account including its rates, benefits, drawbacks and applicable fees.
The article also covers three alternatives to the RBC eSavings account.
Let’s get started.
Table of Contents
Overview of RBC
The Royal Bank of Canada (RBC) is one of the top five biggest banks in Canada.
RBC was founded in 1864 and it currently boasts over 17 million customers in Canada and 28 other countries including the U.S.
With over 150 years of banking experience and up to 1,210 branches in Canada, RBC is one of the top banks out there.
Besides savings accounts, RBC also offers the following financial products and services.
- Chequing accounts
- US dollar accounts
- Wire transfers
- Credit cards
- Virtual debit cards
- Lines of credit
- Mutual funds
What is an RBC eSavings Account?
The RBC High-Interest eSavings Account can be defined as a high-interest savings account (HISA).
This account has the highest interest rate among all RBC savings accounts.
If you sign-up for the account between now and April 21, 2023, you will be eligible for a 4.60% promo interest rate.
This promo rate only applies to your savings in the first three months of opening the account. After the promo period is over, the account will revert to a 1.50% regular interest rate.
Note that the 4.60% promo rate only applies to a maximum balance of $1,000,000. Any amount you save beyond this limit will earn the regular interest rate of 1.50%.
That being said, below are the key features of the RBC High-Interest eSavings Account:
- 1.50% regular interest rate
- No minimum opening balance or deposit requirement
- No monthly fee
- Free electronic transfers to your other RBC personal deposit account
- Free access to RBC mobile, telephone and online banking
- 1 Free RBC ATM withdrawal per month
- Free access to myFinance Tracker
- CDIC deposit protection
RBC High-Interest eSavings Account Fees
While the RBC High-Interest eSavings Account has a lot of fee waivers, the account charges the following fees:
|$1.00 per transaction
|$1.00 per transaction
|Debits exceeding a monthly limit
|$5.00 per transaction
|ATM cash withdrawals (RBC)
|1 Free per month
|ATM network access fees
|Interac = $2. PLUS System in Canada and US = $3.00. PLUS System elsewhere = $5.00
|eNotifications and eStatement
Click here to learn more about the fees that apply to the RBC High-Interest eSavings Account.
How to Open an RBC High-Interest eSavings Account
There are multiple ways to open the RBC High-Interest eSavings Account.
You can walk into an RBC branch nearest to you and request to open the account.
RBC also allows you to open the account online or by phone at 1-800-769-2561.
Before you can open the RBC High-Interest eSavings Account, you need to meet the following eligibility:
- Be a Canadian resident
- Reach the age of majority in your province
- Be willing to open the account for yourself and in your name
If you meet the above criteria, you can visit the RBC High-Interest eSavings Account page and click on “Open Online” to sign up for the account online.
RBC High-Interest eSavings Account Alternatives
You have learnt from the foregoing review that the RBC High-Interest eSavings Account has a non-promo savings rate of 1.50%.
This is quite similar to what you will get if you open a high-interest savings account with any of the other big banks in Canada.
The best way to enjoy a higher non-promo savings rate is to switch over to digital banks.
Some of the most popular digital banks that offer a higher savings rate include EQ Bank, Oaken Financial, and Neo Financial.
Let’s take a brief look at the HISA offerings of these three online banks.
EQ Bank Savings Plus Account
EQ Bank is a popular online bank in Canada that has gained more than 370,000 customers since its inception in 2016.
The bank offers different types of savings accounts including TFSA, RSP and US dollar accounts.
The EQ Bank Savings Plus Account currently offers a high regular rate of 2.50%. The TFSA and RSP accounts of EQ Bank offer a 3% interest rate on every dollar.
Other benefits and features of the EQ Bank Savings Plus account are highlighted below.
- No minimum deposit or balance required
- Free transactions (including Interac e-Transfer and bill payments)
- Zero monthly fees
- Mobile cheque deposit
- Free ATM withdrawals with EQ Bank card
That being said, deposits in EQ Bank Savings Plus Accounts are covered by CDIC protection up to $100,000 per insured category.
Oaken Savings Account
Oaken Financial is a fast-growing digital bank in Canada that is powered by Home Bank and Home Trust Company.
The Oaken Savings Account offers a non-promo savings rate of 3.40% which is higher than what you get at RBC or any other big bank.
Aside from the high savings rate, the Oaken Savings Account also comes with the following benefits and features.
- No monthly fees
- No minimum required balance
- Free transactions
- Easy transfer to an Oaken GIC
Like other online banks, Oaken Financial Savings Account also has a CDIC coverage of up to $100,000.
Neo Money Account
Neo Financial is another popular digital bank in Canada offering a high-interest savings account called Neo Money.
Neo Financial was launched in 2019 and has grown to become an award-winning digital bank due to its top-notch cashback credit cards and competitive savings rates.
The Neo Money Account currently offers a non-promo savings rate of 2.25%. This is 75-cent higher than the RBC High-Interest eSavings Account’s rate.
The Neo Money account also comes with the following benefits and features.
- No monthly fees
- No minimum balance requirement
- Free transactions
- Free Interac e-Transfers
- BMO High-Interest Savings Accounts Review
- TD High-Interest Savings Account Review
- Tangerine High-Interest Savings Account Review
- Simplii High-Interest Savings Account Review
- Scotiabank MomentumPLUS Savings Account Review
- 10 Best Online Banks in Canada
How to Choose a High-Interest Savings Account in Canada
Choosing a high-interest savings account in Canada requires due diligence and proper consideration of some important things.
For clarity, let’s discuss the key factors that you need to consider when choosing a HISA in Canada.
Minimum Balance Requirement
Most HISAs in Canada do not require a minimum balance which makes them stand out from regular savings accounts.
However, some banks may require you to have a minimum balance for you to save in a HISA.
In some instances, you can save without a minimum balance requirement but you need to have a minimum balance to get a fee waiver.
Traditional banks like RBC charge a fee for debit transactions such as bill payments, ATM withdrawals and Interac e-Transfers.
On the other hand, most digital banks like Oaken Financial, EQ Bank and Neo Financial waive everyday banking fees on their HISAs.
Many banks in Canada offer a high promo savings rate that only lasts for a few months. When the promo period is over, your account will be reverted to a regular lower interest rate.
If you want to save for a longer period, you will be better off choosing an account with a higher non-promo interest rate.
Verdict on RBC High-Interest eSavings Account Review
The RBC High-Interest eSavings Account competes significantly with the HISAs of other traditional banks in Canada.
But as you can see, the non-promo rate of the account is nothing compared to the HISA rates of Oaken Financial, Neo Financial, EQ Bank and other digital banks.
So if you are looking to earn the maximum interest on a HISA in Canada, consider saving in an online bank HISA.
Besides having higher rates, digital banks offer special perks, fee waivers and better convenience than traditional banks.
Which HISA are you going with? Let me know in the comment.
FAQs on RBC High-Interest eSavings Account Review
What is the Interest Rate on RBC High Interest eSavings Account?
The RBC High-Interest eSavings Account currently offers a promotional interest rate of 4.60%. This rate lasts for just three months.
However, the regular interest rate on the RBC High-Interest eSavings Account is 1.50%.
Is RBC High Interest eSavings good?
The account is good for those looking to earn high interest on their savings through a traditional bank.
With a 4.60% promo rate, a 1.50% regular rate, no minimum balance requirement and no monthly fees, the RBC eSavings is one the best HISA from the big banks in Canada.
Is RBC High Interest eSavings free?
The account is not totally free because it charges ATM withdrawal fees, Interac e-Transfer fees and other fees.
However, RBC High-Interest eSavings Account can be said to be free in the sense that it doesn’t charge monthly fees and eStatement and eNotifications fees.