The personal savings rate for the average Canadian was just 4.1 per cent of earnings as of June 2011, according to Statistics Canada's economic indicators.

One excuse for Canucks living paycheque to paycheque is that savings account rates are so low. Another rationalization is that Canadians don't have enough time to look for the most rewarding savings accounts.

A free Web search page from the Financial Consumer Agency of Canada (FCAC), however, acts like kryptonite on both arguments. Within seconds, the Savings Account Selector Tool can zoom in on the best savings accounts that satisfy consumer needs for both lower costs and superior returns.

Savings account interest adds up
Even at today's paltry rates, deposit accounts with the highest rates can generate thousands of dollars in extra interest earnings. This is particularly important if you have cash in a regular bank account that you're building up as an emergency fund, or you're saving to buy a big-ticket item like a car or house.

Consider a $50,000 nest egg earning only 0.25 per cent. At 2 per cent compounded daily, a higher interest savings account would grow by an extra $882.68 in one year and by $9,562.06 over ten years.

Happily, some savings accounts pay attractive rates no matter how small your balance is.

Step 1: Identify highest earning accounts.
At the Savings Account Selector Tool, simply click on your province or territory of residence on the Canada map graphic. Then, select the radio button beside the minimum amount of money that you can keep in your account at all times.

The system responds by listing savings accounts starting with the highest interest rates. For Ontarians, the top savings account providers now paying 2 per cent in daily interest were:

• Ally.
• Canadian Tire Financial Services.
• ING Direct.

Tops among the five big Canadian banks, the RBC High Interest eSavings Account earns 1.2 per cent regardless of account balance. Some, including the CIBC Premium Growth Account, pay 0.25 per cent. Others, like the Scotiabank Daily Interest Savings Account, currently return only 0.05 per cent.

Step 2: Check for account accessibility.
The Selector Tool highlights how account holders can access funds in the listed accounts. For example, neither Ally nor Canadian Tire Financial Services have automated banking machines. This can be a deciding factor if you don't live or work near one of their branches.

In addition, Ally requires up to three business days to transfer money to and from another financial institution, which can be troubling when you use your savings account to withdraw cash or pay bills.

Step 3: Compare savings account service fees.
The Selector Tool also distinguishes the various transaction fees that apply to each account. Ally and Canadian Tire accounts feature unlimited free services whether made via Web banking, telephone or in person. The CIBC Premium Growth Account and the Scotiabank Daily Interest Savings Account both charge $1.25 per withdrawal, bill payment or transfer -- including those made at automated banking machines.

Be careful about cheque writing fees too, which can cost $5 per cheque or more. Account closing fees may be as high as $25 if you terminate a new savings account within two weeks of first setup.

Step 4: Verify current source information
Perhaps the biggest disadvantage of the Selector Tool is that the online information isn't refreshed daily. The last update for the data used in this article was August 2011.

Luckily, each Selector Tool page includes links to the source financial institution's website. This allows you to quickly fact-check pertinent information before making a final decision on your short list of top savings accounts.

Another potential catch is that fine-print conditions or restrictions may apply. Again, visit the provider's website or contact the financial institution directly for that key information.

Lastly, the Selector Tool fails to detail whether the Canada Deposit Insurance Corporation (CDIC) covers each savings account. Although the maximum amount of CDIC insurance is usually $100,000 per person, ING Direct and other providers insure additional amounts for different types of accounts and will work with you to maximize your CDIC coverage.

See related: Tax-Free Savings Accounts: 7 smart strategies; How to win a dispute with your bank in 5 easy steps