What do you use your savings account for?
You may have some emergency funds in your savings account, or perhaps you use it as a secure place to save cash for a big purchase, but are you maximizing the interest-earning potential?
For many Canadians, savings accounts are just something you get when you open a chequing account. Our lack of enthusiasm is understandable when you consider that for the last few years, traditional savings accounts have been offering interest rates as low as 0.05%. This is lower than the rate of inflation; meaning the longer you saved money, the less buying power it had when you actually spent it.
Some good news
Not all savings accounts are the same, and many now offer a good rate of return.
- High-interest savings accounts (or HISAs) should reward you above the rate of inflation, supplementing your hard-earned savings while keeping it safe.
- A GIC (Guaranteed Investment Certificate) is another option. A fixed-rate GIC guarantees your investment will grow, and your initial investment is always safe.
How much interest can you earn?
Well, that depends on how much money you are able to save, when you withdraw the money, and the rate of interest applied.
Use Ratesupermarket.ca to find the best savings and GIC accounts in Canada, and use our handy Savings Calculator to find out exactly how much you can earn on top of your savings. Simply enter your info and let us do the math.
Compare the results against the savings account you are currently using, and if it makes financial sense to switch, follow our secure link to the provider's website to complete an application to your desired savings account.
Check out our dedicated pages for more information on savings accounts and the best GIC rates.