Pacific Ledger
How Much Interest You Actually Earn With a 0.10%–2.9% Savings Account
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Most Canadians still keep their savings in traditional Big 5 bank accounts earning 0.01%–0.10%. At those rates, your money barely grows.
Fintech banks, on the other hand, offer 1.25%–2.90% (sometimes more), which can mean 10–25× more interest on the same cash.
This guide shows:
The real dollar difference
How much you earn at each rate
A comparison of Wealthsimple, EQ Bank, and Neo Financial
Why traditional banks don’t make sense for savings
If your money is earning 0.01%–0.10%, growth is basically nonexistent.
Example
$10,000 at 0.10%→ $10,000 × 0.001 = $10 per year
Now compare that to fintech rates:
1.25% → $125/year
2.25% → $225/year
2.90% → $290/year
That’s real money you’re leaving behind.
Fintech rates we’re comparing
Wealthsimple: 1.25%
EQ Bank: 2.35%–2.50% (account-dependent)
Neo Financial: 2.25%–2.90% (tiered by balance)
All three beat Big 5 banks by a wide margin.
Simple interest calculator
Yearly interest = Balance × Interest rate
$10,000 example
0.10% → $10
1.25% → $125
2.25% → $225
2.35% → $235
2.50% → $250
2.90% → $290
What you earn at different balances
$5,000
0.10% → $5
1.25% → $62.50
2.25% → $112.50
2.50% → $125.00
2.90% → $145.00
$10,000
0.10% → $10
1.25% → $125
2.25% → $225
2.50% → $250
2.90% → $290
$20,000
0.10% → $20
1.25% → $250
2.25% → $450
2.50% → $500
2.90% → $580
$50,000
0.10% → $50
1.25% → $625
2.25% → $1,125
2.50% → $1,250
2.90% → $1,450
Small percentage changes become huge dollar differences as balances grow.
Wealthsimple (1.25%) — lowest rate, best spending perks
While the interest rate is lower, Wealthsimple offers extras traditional banks don’t:
No FX fees on debit spending
High ATM withdrawal limits
Seamless link to investing accounts
Best for:
Travel savings
Everyday spending balances
Short-term goals with cashback
Example:$10,000 × 0.0125 = $125/year
EQ Bank (2.35%–2.50%) — highest rate without tiers
EQ Bank offers strong rates through notice savings accounts:
10-day notice: 2.35%
30-day notice: 2.50%
You must wait before withdrawing, but interest continues during the notice period.
Examples at 2.50%
$20,000 → $500/year
$50,000 → $1,250/year
Best for:
High balances
Savings you won’t touch often
Top interest without balance tiers
Neo Financial (2.25%–2.90%) — rewards larger balances
Neo’s rate increases automatically as your balance grows:
$0–$4,999 → 2.25%
$5,000–$19,999 → 2.50%
$20,000+ → 2.90%
Examples
$3,000 → $67.50/year
$10,000 → $250/year
$25,000 → $725/year
Best for:
Growing savings
Full liquidity (no notice period)
Set-and-forget interest increases
Quick calculator you can reuse anytime
Yearly interest = Balance × Rate
$8,000 at 2.25% → $180/year
$15,000 at 2.50% → $375/year
$20,000 at 2.90% → $580/year
Monthly interest (rough estimate):(Balance × Rate) ÷ 12
Which fintech should you choose?
Choose Wealthsimple if:
You want no-FX spending
You like cashback on purchases
You want savings + spending in one place
Choose Neo Financial if:
You want instant access
You expect your balance to grow
You want the highest rate with no restrictions
Choose EQ Bank if:
You want consistent top-tier interest
You don’t need instant withdrawals
You want strong returns at any balance
Final thoughts
Big 5 banks pay 0.01%–0.10%, which is effectively nothing. Fintech banks increase your return 10–25× overnight—no investing risk required.
Whether you value spending perks, top interest, or flexible access, Wealthsimple, EQ Bank, and Neo all outperform traditional banks in every meaningful way.
