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High Interest Saving Accounts

High Interest Saving Accounts

dj55
Joined: Oct 2011
Posts: 8

dj55
Joined: Oct 2011
Posts: 8

High Interest Saving Accounts
8/24/2016 at 4:19 PM

Hello,

I am thinking about saving for a house and I would like to know which bank has the best options for high-interest savings accounts plus your experiences with them.

Thanks!
ZachT
Joined: Jun 2013
Posts: 497

ZachT
Joined: Jun 2013
Posts: 497

Not a bank
8/24/2016 at 6:12 PM

I wouldn't use a bank, especially RBC. They are only looking after themselves.

Credit Unions may be a better choice.

Personally, I'd use an investor, and go with either a TFSA or a RRSP. There may be better options too.

Anyplace that gives a rate of return at or below the rate of inflation isn't earning you any money. If the annual rate of inflation is 2%, then your investment has to earn more than that for you to earn money on it.

Good luck.
Adam

Joined: Mar 2005
Posts: 15663

Adam
Joined: Mar 2005
Posts: 15663

High interest savings
8/25/2016 at 7:40 AM

I'm sure there are folks with varying ideas about how to grow savings and investments, but as far as the question of savings accounts we've enjoyed Maxa Financial's (division of Westoba) 1.70% savings account. Have some money in an RBC "high interest" eSavings account, but with the rate down to 0.55% it just isn't worth it like it used to be. If you prefer the big banks, it looks like Scotia can offer you a little better at 0.8% as long as you have at least $5000 parked.

Definitely look into your TFSA and RSP options if you haven't already. Many accounts can be setup as either, giving you different options to save in a more tax-favourable way Depending on if one or the other (or both) work for you in your personal situation.
dj55
Joined: Oct 2011
Posts: 8

dj55
Joined: Oct 2011
Posts: 8

Thanks!
8/25/2016 at 1:16 PM

Thanks for all the input. I'm hoping in the next few years (I'm 22 now) I'll be able to afford something.
Woody94
Joined: Dec 2010
Posts: 661

Woody94
Joined: Dec 2010
Posts: 661

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8/25/2016 at 1:35 PM

Given your age it might be better to take a bit of risk to actually get a worthwhile return. An index fund is pretty safe risk wise as it is made up of many or almost all in some cases stocks in a particular market. Us index funds are quite strong right now. There is some risk as a stock market can go down. But over time and this is based on a lot of years the markets go up. Do your own research but don't be afraid of some risk. 1% is not going to get you where you want to go.