Savings Account Interest Rates: Myths vs Facts

Interest rates on savings accounts sound simple, but there are a lot of half truths and marketing tricks mixed in.

Let’s clear up a few big myths so you actually know what you’re earning—and why.

A High Interest, Flexible Option: KOHO Everything

If you want your savings to actually grow while still staying easy to use, with KOHO Everything:

• Grow your savings with 3.5% interest, one of the highest rates in Canada

• Earn a 2% cash back rate on groceries, eating, drinking, and transportation and 0.5% cash back on everything else

• There are no foreign exchange fees, so you save on international purchases and travel

• Unlimited transactions and free e-transfers

• No minimum balance required, ever.

Myth 1: The Highest Advertised Rate is Always Best

Fact: Many “wow” rates are promotional or only apply up to a certain balance or for a short time.

Always look at:

• How long the promo lasts

• What the regular rate is afterward

• Any conditions (minimum balance, new money only, etc.)

A solid, ongoing rate you can actually keep is often better than a teaser that disappears in a few months.

Myth 2: Interest Only Matters if You’re Rich

Fact: Percentages apply to any balance.

Even smaller amounts benefit from:

• Compounding over time

• Consistent deposits (like a bit from every paycheque)

You don’t need thousands to make interest “worth it”—you just need to start and keep adding.

Myth 3: Savings Account Rates Never Change

Fact: Most high-interest savings rates are variable.

They can go up or down based on:

• Market interest rates

• Competition between banks and fintechs

• Whether a promo period has ended

That’s why it’s worth checking in on your account once in a while instead of assuming the rate is the same as when you signed up.

Myth 4: You Can’t Get Good Interest and Keep Your Money Accessible

Fact: You don’t always have to lock your money away in long-term products to get a meaningful rate.

Accounts like KOHO Everything are designed so you can:

• Earn a competitive interest rate

• Still move money, spend, and use your card normally

• Avoid the feeling that your savings are “stuck”

That mix of high interest + flexibility is what most people actually need day to day.