High Interest Savings Account (HISA)
What is a HISA?
A High Interest Savings Account (HISA) is a savings account that can offer a higher interest rate than a regular savings account. It can be another way to grow savings without locking in for a specific term.
How CDIC insures HISAs
When held at a CDIC member institution and in an insured category, HISA deposits may be eligible for CDIC protection. However, it’s important to note that not all HISAs are eligible for CDIC protection. For example, HISA Exchange Traded Funds (ETF), also called money market ETFs, and HISA mutual funds, are not protected by CDIC. If you have opened a HISA through a broker, your HISA may be eligible for protection if the funds are held at a member institution. Contact your financial institution to learn more about the types they offer.
Eligible deposits held in HISAs are combined with other eligible deposits in the same insured category for a total possible protection of $100,000 per category, per member institution.
Example
Here’s an example of Jason’s TFSA, in it he has a HISA, a GIC, and mutual funds. Here is how his funds are protected at one member institution:
- $12,500 in an eligible HISA
- $3,000 in a GIC
- $2,000 in mutual funds
Total deposits
$17,500
Eligible deposits
$15,500
Protected by CDIC
$15,500
Both the HISA and GIC are eligible deposits and are fully covered for the total $15,500. Since they are held in the same insured category (e.g. TFSA), they have combined coverage of up to $100,000.
Deposit insurance is free and automatic.
Our calculator can help you understand coverage. Protection is based on several deposit categories that keep your money safe throughout your life.
Calculate your coverage