A hole saw having efficient slug removal includes a saw cup, a shank portion, a spade bit, a compression spring and a contact disc. A plurality of cutting teeth are formed on an open end of the saw cup and the shank portion is attached to the other end of the saw cup with any suitable fastening process. The spade bit includes a cutting bit and a shank. A shank opening is formed through the shank portion to receive the shank of the spade bit. Preferably, a set screw or the like is used to retain the spade bit in the shank opening. The shank of the spade bit is inserted through the contact disc and then the compression spring, before insertion into the shank opening. A hole slug is ejected from the saw cup, when the hole saw is removed from a hole.