How Much Interest You Actually Earn With a 0.10%–2.9% Savings Account

Most Canadians still keep their savings in traditional Big 5 bank accounts earning around 0.01–0.10 percent. At those rates, your money barely grows. Fintech banks, on the other hand, offer rates between 1.25 percent and 2.9 percent—sometimes more than 25 times higher than a traditional bank.

This guide breaks down the real difference in dollars, shows how much you actually earn at each rate, and compares three of Canada’s leading fintech options: Wealthsimple, EQ Bank, and Neo.

Why Traditional Banks Don’t Make Sense for Savings

If your savings are sitting in a Big 5 chequing or savings account earning 0.01–0.10 percent, the growth is almost zero.

For example:

$10,000 at 0.10 percent$10,000 × 0.001 = $10 per year

Compare that to:

$10,000 at 1.25 percent → $125 per year$10,000 at 2.25 percent → $225 per year$10,000 at 2.9 percent → $290 per year

The difference is too large to ignore. Fintech banks pay significantly more and offer additional benefits traditional banks don’t provide.

The Three Fintech Rates We’re Comparing

Wealthsimple: 1.25%

EQ Bank: 2.35%–2.50% (depending on account)

Neo Financial: 2.25%–2.90% (tiered rates based on balance)

These accounts all outperform traditional banks, but each one has different strengths.

Simple Interest Calculator

For a quick annual estimate:

Yearly interest = Balance × Interest rate

Example with $10,000:

1.25 percent → $125

2.25 percent → $225

2.35 percent → $235

2.50 percent → $250

2.90 percent → $290

0.10 percent → $10

Fintech banks beat traditional banks by a wide margin.

What You Earn at Different Balances

Here is a breakdown comparing common rates against a typical Big 5 account.

$5,000 balance

0.10 percent = $5

1.25 percent = $62.50

2.25 percent = $112.50

2.35 percent = $117.50

2.50 percent = $125.00

2.90 percent = $145.00

$10,000 balance

0.10 percent = $10

1.25 percent = $125

2.25 percent = $225

2.35 percent = $235

2.50 percent = $250

2.90 percent = $290

$20,000 balance

0.10 percent = $20

1.25 percent = $250

2.25 percent = $450

2.35 percent = $470

2.50 percent = $500

2.90 percent = $580

$50,000 balance

0.10 percent = $50

1.25 percent = $625

2.25 percent = $1,125

2.35 percent = $1,175

2.50 percent = $1,250

2.90 percent = $1,450

Even a small increase in percentage produces meaningful growth as your balance rises.

Wealthsimple (1.25% Interest) — Lowest Rate, but Extra Perks

Wealthsimple pays 1.25 percent, which is the lowest of the fintech options—but they make up for it with unique benefits:

No foreign exchange (FX) fees when travelling

1% cashback on your debit card purchases

Large ATM withdrawal limits

Smooth integration with Wealthsimple Invest and Trade

Wealthsimple is best for:

– Travel savings accounts

– Everyday spending you want to earn cashback on

– Separating short-term goals while still earning better interest than traditional banks

Example: $10,000 × 0.0125 = $125 per year

EQ Bank (2.35–2.50%) — Highest Rate Without Tiered Balances

EQ Bank offers strong everyday interest:

10-day Notice Savings Account: 2.35 percent

30-day Notice Savings Account: 2.50 percent

The notice accounts pay the highest rate but requires a 10 to 30-day wait before withdrawing funds—interest continues accruing during the notice period.

Example at 2.50 percent:

$20,000 × 0.025 = $500 per year

$50,000 × 0.025 = $1,250 per year

EQ Bank is best for:

– People who want top-tier interest

– Savings that don’t need instant access

– Balances of any size (no tiering)

Neo Financial (2.25–2.90% Tiered Rates) — Rewards Larger Balances

Neo’s High-Interest Savings Account automatically increases your rate as your balance grows:

$0–$4,999.99 → 2.25 percent

$5,000–$19,999.99 → 2.50 percent

$20,000+ → 2.90 percent

Examples:

$3,000 × 0.0225 = $67.50 per year

$10,000 × 0.025 = $250 per year

$25,000 × 0.029 = $725 per year

Neo is best for:

– People building larger savings

– Anyone who wants daily liquidity

– Earning increasing interest without switching accounts

Quick Calculator You Can Use Anytime

Yearly interest = Balance × Rate

Examples:

$8,000 at 2.25 percent$8,000 × 0.0225 = $180 per year

$15,000 at 2.50 percent$15,000 × 0.025 = $375 per year

$20,000 at 2.90 percent$20,000 × 0.029 = $580 per year

Monthly interest is roughly: (Balance × Rate) ÷ 12

Which Fintech Rate Should You Choose?

Choose Wealthsimple (1.25%) if:

– You want the no-FX debit card

– You want 1% cashback on purchases

– You want to separate travel or everyday spending from savings

Choose Neo (2.25–2.90%) if:

– You want instant access

– You expect your savings to grow

– You want the highest possible rate without restrictions

Choose EQ Bank (2.35–2.50%) if:

– You want consistently high interest

– You don’t need immediate access to all your funds

– You want a top rate without relying on balance tiers

Final Thoughts

Traditional banks offer between 0.01 and 0.10 percent on savings—far too low for any meaningful growth. Switching to a fintech bank instantly boosts your return by 10–25 times, depending on the account.

Wealthsimple, EQ Bank, and Neo all offer better options, each with different strengths depending on how you use your money. Whether you want the highest rate, the best spending perks, or flexible access to your savings, these fintech alternatives outperform traditional banks in every category.