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3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

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3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

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I personally believe that knowing these options is definitely a staple to know with your current or future family. We all make investments sometime in our life, so it's very useful to know the basics of each account and what they do. It makes investing for you a whole bunch easier.

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2. Provide a real-life example of how this topic is relevant or interesting for you.

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2. Provide a real-life example of how this topic is relevant or interesting for you.

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It was actually really useful to explore around with TFSA's because my boyfriend currently has one with an investment plan. He explained the basics to me, but I wanted to dig deeper with understanding it, so it was refreshing and reassuring to see that same information (and more) with reading these articles and watching these videos.

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1. What did you learn about your topic that surprised you the most?

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1. What did you learn about your topic that surprised you the most?

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The thing that surprised me most is how many savings account options there are in Canada. I don't think I expected so many savings options when I moved here, so it's crazy to see when I become a citizen I have multiple options for not only me, but my future family and/or dependents.

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If you don't feel like watching a video on RESP's, take a look at this article. Soon as you read it, it gives you 7 things to know about RESP's - both the good and bad. It tells you where to open RESP's which are either at financial institutions or scholarship plan dealers (a company that only sells RESP's either as an individual or family plan). RESP's also are very strict, you have 60 days to cancel your contract and plan without any penalties, and you have to always be consistent with your money contribution, so beware.

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Most RESPs are opened for children, but you can open an RESP for yourself or another adult. The person who opens the plan is called the subscriber.

When your child enrols in post-secondary education, they can start taking payments, called educational assistance payments (EAPs) from their RESP. EAPs are made up of the investment earnings and government grant money in the RESP. The person who is named to receive EAPs under the plan is called the beneficiary.

7 things to know about RESPs

1. Your savings grow tax free. There is no tax on the investment earnings, as long as they stay in the plan.

2. If you save for a child age 17 and under, the federal government also puts money into the RESP as a grant or bond. In some provinces, the provincial government may contribute too.

3. You can usually put money in whenever you want, up to a lifetime maximum of $50,000 per child. But some plans require set monthly or annual contributions.

4. Contributions are not tax deductible. But withdrawals called educational assistance payments are included in the student's income.

5. There is a wide range of investment options available for RESPs. Examples: stocks, bonds, mutual funds, GICs. Some plans let you decide how to invest your savings. Others invest your money for you.

6. Your child can take money out of the RESP when they enrol in university or college or another qualifying education program or specified education program.

7. An RESP can stay open for up to 36 years. Under specified plan rules, the plan can stay open for up to 40 years for beneficiaries eligible for the disability tax credit.

Learn more about how RESPs work.

Where to open an RESP

Companies that offer RESPs are called providers. There are two main types of providers:

1. Financial institutions - includes banks, credit unions, mutual fund companies, investment firms and trust companies. They offer individual and family plans.

2. Scholarship plan dealers - companies that only sell RESPs. They offer individual, family and group RESPs. Learn more about Group RESPs.

Use this RESP calculator to estimate how much you need to save each year for your child's education.

Fast facts

Between 1995 and 2015, the average cost of 1 year of undergraduate tuition in Canada nearly tripled from $2,333 to $6,191.
Source: Statistics Canada

Caution

You have 60 days after signing your contract Contract A binding written or verbal agreement that can be enforced by law. scholarship plan Scholarship plan A type of Registered Education Savings Plan (RESP) that pools together the money of many investors. An investment manager invests the money for you, often in lower-risk, fixed-income investments such as bonds and GICs. Enrolment fees are often high and there may be strict rules. prospectus Prospectus A legal document that sets out the full, true and plain facts you need to know about a security. Contains information about the company or mutual fund selling the security, its management, products or services, plans and business risks. + read full definition to cancel plans provided by + read full definition dealers without any penalty. Be sure to read and understand the rules outlined in the short Plan Summary provided in the plan + read full definition .

Notice: JavaScript is required for this content.

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How RESPs work | RESPs | GetSmarterAboutMoney.ca

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Most RESPs are opened for children, but you can open an RESP for yourself or another adult. The person who opens the plan is called the subscriber. When your child enrols in post-secondary education, they can start taking payments, called educational assistance payments (EAPs) from their RESP.

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GIC's may be a little confusing, but with this video, you get to know enough to understand what they really are. GIC's are a very safe investment with little to no risk involved. GIC's are a GUARANTEED investment, so you will make something no matter what, which is pretty rare to see. It may sound like unicorns and rainbows, but with too good comes bad. The investment must be made consistently for a fixed amount of time, and the interest rates can be sort of intense with these accounts. It's good to explore your options with GIC's and you have to be very mindful and careful with this option.

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What is GIC ? Everything you need to know about GIC | Simple explanation

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What do I need to consider when choosing a savings account?

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What do I need to consider when choosing a savings account?

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Savings accounts are not an easy pick and choose thing. There are many different factors to consider when selecting a type of savings account, especially because some may not even apply or make sense for you. Some things to consider before choosing an account are:
1. What will I use the account for?
Personal investments? To have an extra chunk of emergency money? For my future child's college fund?
2. How much money do I have to contribute to it?
3. Do I qualify for this type of savings account?
4. How much interest do I make or lose on this account?

With those questions in mind, we can now go and find out what account fits us and our future/current needs. Read to the right to explore all these different types of savings options!

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This is a great and simple article to explain interest-earning chequing accounts. There are certain privileges and disadvantages to using any banking account. This article explains the common features of this account and what its main purpose is. It also includes things you should know, such as figuring out common account fees, how to save money using these accounts, and even when to use this and how/when it's appropriate for use.

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Interest-earning chequing accounts provide account holders with interest on the funds they have in the account. These type of chequing accounts are most common with digital banks that offer no-fee daily chequing accounts. The interest rate for these accounts can either be one rate or a tiered rate. Typically, interest is calculated at the end of each day and paid into the account monthly.

Common Account Features

Interest-earning chequing accounts typically have no monthly fee and no minimum balance. They may also offer unlimited deposit, withdrawals, and debit transactions as well as interest on the funds in the account.

Common Account Fees

The majority of providers that offer interest-earning chequing accounts are digital banks. Therefore, these accounts have no monthly fees but do have fees for additional services and features such as Interac e-Transfers.

When to Use an Interest-earning Chequing Account

An interest-earning chequing account is a good option if you tend to hold a high balance in your account. The majority of chequing accounts don't reward you for having a high balance in your chequing account. Typically, your monthly fee is waived but you earn 0% interest on your funds. Since the majority of interest-earning chequing accounts have no monthly fee and provide unlimited debit transactions, these accounts are a better option than unlimited accounts with monthly fees and no interest provided.

How to Save Money on an Interest-earning Chequing Account

With no monthly fees, interest-earning chequing accounts not only save account holders monthly fees, they also provide them money through interest earned on fund balances. The only way to save money in these accounts is by not conducting transactions that charge service fees.

When Not to Use an Interest-earning Chequing Account

If you require banking transactions that are deemed additional services on an interest-earning chequing account, this may not be the best option. For example, if you send many Interac e-Transfers every month, it may be wiser to have an account that has unlimited e-Transfers as you'll have to pay a fee for each one you send. Therefore, if you do many transactions that incur service fees, it may be worth your while to have an account that includes more of these features.

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Interest-Earning Chequing Accounts | Ratehub.ca

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Interest-earning chequing accounts provide account holders with interest on the funds they have in the account. These type of chequing accounts are most common with digital banks that offer no-fee daily chequing accounts. The interest rate for these accounts can either be one rate or a tiered rate.

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This image is an easy reference to how a GIC works. You first contribute your money via a wire transfer, then interest is depositied into the account, you receive a certain amount of money with interest for a year, then finally receive your money in your account.

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RESP's are a great account to contribute money towards your childs future school/college funds. RESP's are long investments, they can range from 5 years to 10 or 15 - it depends how early you invest. It's a monthly contribution of whatever money, but, of course, there is a limit of contribution money of $50K. The Canadian government provides a 20% match of whatever you contribute, making investing go by a lot quicker. Since the money can be invested, it's very easy to make or break that contributed money.

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Another lovely and thorough explanation video from Brandon Beavis Investing! This one is on RRSP and he seriously explains everything, and WELL. The point of an RRSP is to prepare yourself to have retirement money later in the future. These funds are mainly lower-risk investments to assure you have some chunk of money in your account, and not "gambling" it up with higher-risk investments. When you're working and have income, you want to use high-risk investments because you still have a source of income if you mess up or your investments fail. But, at retirement, you don't have that stable source of income anymore, so you have to make it stable yourself by investing in lower-risk investments.

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RRSP Explained for BEGINNERS (EVERYTHING YOU NEED TO KNOW)

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The above article is actually by the Canadian government (which America could never compare with, even with including something like this in their education system). It explains and shows all the different options of savings accounts in Canada. It also gets you to think about the questions you really need to consider, such as "how does this fit my needs?" "what are the charges?" "what are the minimum deposits i can make?" and things such as those. It also explains how you can access these accounts and even explains how the bank you chose calculates the interests on certain types of accounts and cards.

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A savings account is an account that pays interest on the money you deposit, also known as the principal. Many people who open a savings account also have a chequing account for their day-to-day banking.

What to consider when choosing a savings account

When shopping around for a savings account, pay attention to the following features and considerations.

Minimum deposit

You may need to deposit a minimum amount to set up certain savings accounts.

Some accounts may need you to keep a certain amount of money in the account to earn interest. For example, in some cases you might need to keep at least $1,000 in the account before it pays interest.

Interest rates

You earn interest on the money in your savings account. Each month, any interest you earn will go directly into your account. The higher the interest rate, the more money you'll earn. Consider how much interest, if any, your financial institution will pay on your account balance.

Sometimes a financial institution may offer high-interest introductory rates. These run for a certain length of time. After the period is up, the interest rate may then be lower.

Make sure that you:

will still earn a good rate after the introductory period ends

understand the terms of such offers

Service Fees

You don't usually pay monthly fees to have a savings account.

You may still have to pay fees for transactions such as withdrawals or transfers. Most savings accounts offer a limited number of transactions. Some savings accounts won't charge you transactions fees if you keep a minimum monthly balance.

Read your account agreement and find out what the service fees are for withdrawals and transfers.

Use the Account Comparison Tool to find the savings account that best suits your needs.

Accessing the money in your savings account

A savings account usually offers quick and easy access to your money for withdrawals and transfers.

If you use your account mainly to save money, you'll likely only need to make transactions from time to time.

If you need to withdraw money from your account, consider the following:

can you access your money from a nearby automated teller machine (ATM)

can you manage your account using online banking

If you have to transfer money from your savings account to a chequing account before you can withdraw, it may take extra time to access the money.

How your financial institution calculates interest

Carefully examine the terms of the account to find out how your financial institution will apply interest. Some financial institutions apply two or more different interest rates to your balance.

Find out if your financial institution will pay the higher interest rate:

on all the money in your account

on all the money in your account only once your savings go above a certain amount

only on the part of your balance that is above a certain amount

For example:

Bank 1 might pay:

1% on the first $1,000 of your balance, and

2% on amounts more than $1,000

Bank 2 might pay:

2% interest to the entire amount of your balance as long as you keep at least $1,000 in your account

Bank 3 might not pay interest during a month where you take out money.

Compound interest

With compound interest, your initial deposit, or principal, earns interest. The money you earn in interest is added to your savings. You'll continue to earn interest on your total savings. This means the interest you earn will earn interest. The more often your interest is compounded, the more your account balance will grow.

Financial institutions usually advertise a compound interest rate for a savings account.

Usually the advertised interest rate is annual. However, accounts may compound interest monthly or daily. Accounts that compound interest daily earn interest faster than accounts that compound interest monthly.

Ask your financial institution how often it compounds the interest paid to your account.

Example of how compound interest works

Suppose you deposit $100 into your savings account every month. Your money starts to earn interest as soon as you deposit it. Your account has an annual interest rate of 2%, compounded monthly.

This means that, each month, you'll earn about 0.167% (which is 2% divided by 12 months) on your balance. This includes any interest paid in the previous months.

After one month, you have $100 in your account and will earn only $0.17 interest on that balance ($100 x 0.167%). After the second month, your interest will be calculated based on the $200 you've deposited, plus the $0.17 interest earned in the first month.

On a balance of $200.17, you'll earn $0.33 in interest ($200.17 x 0.167%).

Each month, the amount of interest you earn will increase. By the end of the first year, you'll earn a total of $13.08 in interest.

The longer you continue to save and earn compound interest, the faster your savings will grow.
Figure 1: How compound interest adds up over time as you make more deposits into your account.

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banking; consumer protection; personal finance; financial institutions; fees; interest rates; banks; savings; taxes

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A savings account is an account that pays interest on the money you deposit, also known as the principal. Many people who open a savings account also have a chequing account for their day-to-day banking. When shopping around for a savings account, pay attention to the following features and considerations.

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The above image shows various Canadian banks, and the interest charges on these types of savings accounts. These accounts charge all different rates. You have to do a lot of comparing and contrasting with the other banks to get the best deal, or see what fits your needs better.

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TFSA's are pretty straight forward accounts to understand and manage, but investing your savings can be a little iffy feeling. It's always good to have reassurance, so this video helps explain a little more about TFSA's. This YouTube video (and this guy in general) provides an easy "how-to" guide on TFSA's. He explains what ta TFSA is, what you can do with it, and how to use the account to its' full potential. This video also explains the downsides, potential dangers, and limitations on having a TFSA such as being underage and having to contribute a certain amount every month. There are "caps" to TFSA's which is around 6K a month max, but that's not very often someone is ever doing that. TFSA's have the potential to make a lot or lose a lot. It's essential to explore the different types of investment plans from low-risk all the way to high-risk investment plans. Keep in mind, TFSA investors usually get a fee of 3-5% of the money made from that account, so it's not all just "free money"

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TFSA Explained For BEGINNERS (EVERYTHING YOU NEED TO KNOW)

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TFSA's, also known as Tax Free Savings Accounts, are of course tax free savings accounts that also have the potential option to invest your savings as well. This article gives a simple breakdown of the differences between a regular savings account and a tax free savings account. It lays out basic definitions of what you should know about your account and what the extent of it can do now and in the future.

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Because they have similar names, many people think they're the same. However, there's more to TFSA vs Savings accounts than what the CRA does with them.

In this article, we will teach you the difference between TFSAs and Savings Accounts to help you understand these two types of accounts and determine which is the best option for you.

What is a TFSA, and how does it work?

As its name suggests, a is a tax-sheltered savings account. In a TFSA, you don't pay tax on:

You can contribute, invest, earn a return, and keep or reinvest it all-nothing to declare on your tax return, nothing to pay.

TFSAs can hold various investment products, such as stocks, bonds, ETFs, mutual funds, and , which makes them ideal for building an investment portfolio customized to your return and risk profile.

Of course, as with all good things, TFSAs are not without limits. TFSAs are only available for Canadian residents with a Social insurance number and over 18 years of age. They also come with an annual contribution limit.

The TFSA was introduced in 2009, and contribution limits have varied year to year as follows.

The amount you're allowed to deposit into a TFSA is called your "contribution room." Know that any unused contribution room carries over to the next year. So, if you contribute $1,000 in 2019 and $2,000 in 2020, you can contribute up to $15,000 in 2021.

You get back the contribution room on any withdrawals from your TFSA at the start of the following year.

You can have as many TFSAs as you want at as many institutions as you want, as long as your total contribution doesn't exceed the contribution limit.

To open a TFSA, you must contact your financial institution (bank, credit union, broker, etc.). You can also do so online with your discount brokerage or bank. They will require your SIN and date of birth to register your TFSA.

What if I become a non-resident of Canada?

If you become a non-resident of Canada, no TFSA contribution room will accrue for any year during which you are a non-resident. Non-residents with a SIN can also open and hold TFSAs, but any contribution made while non-resident will be subject to a 1% tax for each month the contribution stays in the account.

Any withdrawals made during the period that you were a non-resident will be added back to your TFSA contribution room in the following year but will only be available if you reestablish your Canadian residency.

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TFSA vs Savings Account: What's Right For You? | Ratehub.ca

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Because they have similar names, many people think they're the same. However, there's more to TFSA vs Savings accounts than what the CRA does with them. In this article, we will teach you the difference between TFSAs and Savings Accounts to help you understand these two types of accounts and determine which is the best option for you.

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While entering adulthood, having a savings account is a necessity to have, whether it acts as a safety fund or a place to invest with in the future. With my padlet, we get to explore the many different types and ways of saving our money.