EQ Bank Drops HISA Rate to 2.50% — Where to Park Cash Now
EQ Bank, long one of Canada's most popular online savings accounts, has reduced its everyday HISA rate to 2.50%, down from 2.75% earlier this month. This is the third cut since the Bank of Canada began its easing cycle in mid-2024, and it brings EQ Bank's rate below several competitors for the first time in more than a year.
What Happened
EQ Bank's Savings Plus Account — which doesn't require a minimum balance and has no monthly fees — was paying 4.00% as recently as mid-2025. After seven Bank of Canada rate cuts totaling 225 basis points, EQ has progressively reduced its savings rate. The latest cut took effect April 8, 2026.
This isn't unique to EQ Bank. Nearly all variable-rate savings accounts have followed BoC cuts with corresponding reductions. But EQ's moves get attention because of their market share among online savers and because they typically lead the broader online-bank pack on both rate cuts and rate hikes.
How HISA Rates Track the Overnight Rate
High-interest savings accounts are funded by short-term deposits, which means banks earn the overnight rate (or close to it) on the money they hold. As the BoC overnight rate falls, the spread banks can pay to depositors falls too. Right now the BoC sits at 2.75% — so HISAs paying anywhere between 2.25% and 3.25% are working with a thin margin. Expect more cuts if the BoC eases again.
Where Are Rates Better Right Now?
As of mid-April 2026, here's how the main players compare:
- Wealthsimple Cash: 3.25% (premium tier, $100K+ in deposits or direct deposit setup) / 2.50% (basic).
- EQ Bank Savings Plus: 2.50%.
- Tangerine Savings: 0.50% base, but routinely runs 4.00–5.00% promotional rates for 5 months on new deposits.
- Neo Financial High-Interest Savings: 2.25%.
- Motive Financial Savvy Savings: 2.75%.
- Big Five (RBC, TD, BMO, Scotia, CIBC): 0.05–0.25% on standard savings; promotional rates available occasionally.
Check the full comparison on our HISA rate comparison tool, which includes credit unions and smaller institutions that sometimes beat the big names.
Worked Example: $25,000 Parked for a Year
| EQ Bank at 2.50% | $625 interest |
| Wealthsimple Cash premium at 3.25% | $813 interest |
| 1-yr GIC at 3.60% | $900 interest (locked) |
| Big Five savings at 0.10% | $25 interest |
That's a difference of nearly $900/year between the worst and best options on $25K. Switching is usually a 30-minute job — open the account online, link your existing chequing account, transfer the money. No fees to leave EQ; no penalty for switching.
Should You Switch to GICs?
With HISA rates dropping, the gap between savings accounts and GICs has widened. One-year GICs are currently offering 3.40–3.80% at the challenger banks — a full percentage point above the best HISA rates. If you have money you won't need for 12+ months, locking into a GIC captures a higher rate before further BoC cuts.
The trade-off is liquidity: GICs are not redeemable before maturity at most institutions. If there's any chance you'll need the money sooner, the HISA flexibility is worth the lower rate. A common middle-ground strategy is a GIC ladder — split your money across 1, 2, 3, 4, and 5-year GICs so something matures every year.
Compare current options: GIC rates | Read our full analysis: GIC vs HISA — When to Lock In.
Where to Hold the Account Matters Too
If you have unused TFSA contribution room, holding your HISA inside your TFSA shelters the interest from tax. On $25,000 at 2.50%, that's $625/year of tax-free interest instead of being added to your taxable income. Most online savings providers (EQ, Wealthsimple, Tangerine, Manulife) offer a TFSA wrapper at the same rate as the regular savings account.
What to Expect Next
The Bank of Canada's next rate decision is June 4. If the BoC cuts again, expect another round of HISA rate reductions within days. If they hold (as they did in April), rates should stay stable through summer.
For money you need liquid, 2.50–3.25% is the current reality. For anything longer-term, GICs are worth considering. Use our compound interest calculator to see how different rates affect your savings over time.
Source: Published rate sheets at EQ Bank, Wealthsimple, Tangerine, Neo Financial, Motive Financial, and Manulife Bank as of April 14, 2026; Bank of Canada overnight rate target.
Editorial disclaimer
This is news reporting by LoonieLabs Editorial for general information only. It is not financial, tax, legal, or investment advice. Markets coverage is reported analysis, not personalized advice — we hold no positions in individual securities discussed and accept no paid placement. Verify quotes, rates, benefit amounts, and dollar figures on the official source before acting. See our methodology for sourcing and corrections policy. Last reviewed: April 14, 2026.
Written and reviewed by Shrey Patel — Founder & Editor-in-Chief
Winnipeg, MB · Fact-checked by our Banking & Credit reviewer · Last reviewed April 14, 2026 · LinkedIn
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