High Interest Savings Account (HISA)

A High Interest Savings Account (HISA) is a type of savings account that typically offers a higher interest rate compared to standard savings accounts. It allows individuals to earn more on their savings while still having easy access to funds.^2,3

UCU offers three types of High Interest Savings Accounts (HISA):

• UCU HISA
• ucublu HISA (fully virtual)
• ucubiz Grow HISA for Business

While High Interest Savings Account has the same meaning for each of the three types UCU offers, their features differ.

A High Interest Savings Account differs from a regular savings account by offering a higher interest rate, allowing account holders to earn more on their savings balances. While both types of accounts offer similar features such as easy access to funds, the HISA provides a better (higher) interest rate.

The advantage of a regular UCU monthly and daily savings accounts is that the regular savings accounts qualify to be held in various registered plans under government tax programs like a(n) Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP), or First Home Savings Account (FHSA).

The benefits of opening a High Interest Savings Account include:

• Higher interest rates compared to standard savings accounts
• Flexibility to access funds when needed¹
• A way to save money while earning competitive interest⁷

The advantage of a regular UCU monthly and daily savings accounts is that the regular savings accounts qualify to be held in various registered plans under government tax programs like a(n) Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP), or First Home Savings Account (FHSA).

UCU does not require a minimum balance to operate a High Interest Savings Account.⁴

At UCU, there are no monthly fees for our High Interest Savings Account (HISA). Certain transaction fees may apply. See our fee schedule for a complete list of our fees.

Interest on High Interest Savings Accounts is calculated each day by multiplying the interest rate applicable to the account by the daily closing balance (as at 11:30 p.m. Eastern Time) and paid monthly in the currency of the account on the last day of the month or the following business day. The High Interest Savings Account interest rate applies to a maximum deposit of $750,000.00 per member.

Yes, you can make withdrawals from a High Interest Savings Account as needed. Most HISAs offer easy access to funds through online transfers or branch visits. At UCU you can call the UCU Contact Centre at 1.800.461.0777 and one of our representatives will facilitate the transfer.

At Ukrainian Credit Union, eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA).

You can set up automatic transfers to your HISA at UCU. Scheduling self-service automatic transfers between bank accounts requires access to direct service channels (UCU Online Banking and UCU Mobile Banking).⁶

You can open an account online or visit a branch.

Withdrawals from a High Interest Savings Account can be performed by internal transfer to another account, cash withdrawal (subject to cash withdrawal transaction limits; however, cash withdrawals are not available for HISA from ATM/ITM, ucublu HISA, or ucubiz Grow HISA for Business), debit card transactions⁸, and select direct services payments (e.g., Interac e-Transfer, pre-authorized payment).⁶

Restrictions apply to ucublu HISA, including generally applicable requirements for ucublu accounts and a maximum number of monthly withdrawals and transfers, with additional transfers and withdrawals subject to applicable fees.³

UCU does not impose penalties for early withdrawals from a High Interest Savings Account (HISA). Certain withdrawals from savings account are subject to service fees. See the fee schedule for a complete list of fees.

A Tax-Free Savings Account (TFSA) is a type of account created by a government tax program that allows interest earned within the TFSA to accumulate tax-free. UCU High Interest Savings Accounts are not TFSA eligible like other UCU savings accounts and GICs.⁹

A High Interest Savings Account (HISA) does not require a minimum balance, but has a limit ($750,000 at UCU), compared to GICs that require you to invest a certain minimum amount but have no fixed deposit limit. You can add to a HISA at any time unlike a GIC, which is for a locked-in amount. A HISA has no fixed term, and you can withdraw your money at your convenience at any time without interest penalty.^2,3

On the other hand, in return for being invested at a fixed rate of interest for a fixed term with an interest penalty usually being applied for withdrawal before maturity, a GIC usually offers options for higher rates of interest than a HISA. Also, unlike a HISA (UCU HISA, ucublu HISA, or ucubiz Grow HISA for Business), a UCU GIC qualifies to be held in various registered plans under government tax programs like a(n) Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP), or First Home Savings Account (FHSA).

UCU does not offer U.S. dollar High Interest Savings Accounts.

While a HISA has the advantages of no minimum deposit, higher savings rate and flexible deposits and withdrawals, it does not qualify for various registered plans under government tax programs like a(n) Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP), or First Home Savings Account (FHSA) that save or defer taxes for individuals like other Canadian dollar UCU savings accounts and GICs. The rules for each registered plan set out what is taxable versus tax free and when.

A UCU High Interest Savings Account is as secure as other UCU savings accounts while giving you higher interest with maximum flexibility. This means you do not have to sacrifice a good interest rate when a fixed term GIC is not compatible with your cash flow needs. In such circumstances, while your HISA interest rate may be less than what you would earn on a GIC, the trade-off is worth it because you receive a competitive and significantly higher rate than you would get on a regular savings account, there is no minimum additional sum required to be able to add savings to your HISA (unlike a GIC), and you are able to withdraw any deposited amount from it at any time without penalty.^2,3

Yes, UCU offers the ucubiz Grow High Interest Savings Account for businesses that want to generate income on excess cash during cashflow cycles but require more flexibility than a GIC or Term Deposit. The ucubiz Grow HISA has no monthly maintenance fee and no minimum balance is required.⁴ Interest is calculated daily and paid monthly.¹ Free no-fee services include deposits via ATM/ITM, incoming e-Transfer, mobile deposit, transfers between UCU accounts, as well as two free external electronic debits per month, and free monthly e-statements.⁶

The competitive rate paid on a UCU High Interest Savings Account varies depending on the type of HISA selected and can be found on our rates page. UCU also offers promotional HISA rates from time to time for first-time HISA depositors with UCU.

High Interest Savings Accounts can vary by financial institution and region of Canada. UCU High Interest Savings Accounts offer the same great features no matter where our members live, be it in Toronto, another city or town in the province of Ontario, elsewhere in Canada or around the world: no minimum deposit,⁴ competitive higher daily interest rate than regular savings paid monthly,¹ deposit or withdraw your savings without interest penalty when convenient.^2,3