Assignment 2 by

Welcome to my wall

riyadcosta2 — 2023-11-27 23:32:43 UTC

In this post you will enjoy reading more about the factors used to evaluate various savings plan. This includes considering the risk capacity, the interest rate returns, the duration of the investment, the ultimate goals associated with the savings plan, the highlights, flexibility of the savings plan and the prices of the savings plan to evaluate the savings plan. These factors are vital because these will help you to evaluate a good and a successful savings plan. In addition to this you will also learn about the advantages of choosing the savings plan. You would enjoy reading throughout my post as it would help you acquire the necessary knowledge that will help you the next time when choosing a savings plan.

Videos

riyadcosta2 — 2023-11-27 23:58:32 UTC

Video #4 - The ultimate goals of the savings plan.

riyadcosta2 — 2023-11-27 23:59:11 UTC

The video explains the five steps that is necessary to reach the ultimate goals of the savings plan. The first step includes naming your goal. It can be either buying a house or maybe a car. The second step includes setting a end date to reach your target goal. The third step includes creating a separate account for each saving goals as it would help you to measure the cash. The fourth step includes deciding the budget that is figuring out how much you can save. The fifth step includes setting the automatic transfer for your savings plan. Following these steps would help you to accomplish your ultimate goals.

I have chosen this video because it explains one of the factor necessary to evaluate the savings plan which is called as the ultimate goal. This video is better than the other videos because the video is short and the explanation is clear. The information I found useful is the steps explained to reach the ultimate goals by setting a savings plan.

Video #1 - The Best interest rates and the risk consideration

riyadcosta2 — 2023-11-28 00:29:54 UTC

This video explains where you should invest your money to get back the best interest rates for your savings plan. One of the safest place to deposit your money is the EQ Bank which could offer you up to 2.50% of interest rate. In addition to this you could also consider depositing money in CI Direct Investing savings account which would provide you a interest rate up to 4% with no annual fee and minimum balance. The next one could also be Wealthsimple cash account followed by KOHO High interest savings account, BMO Savings Account and more as explained in the video. One must always check the interest rates and should also consider the risk factors associated with the savings plan.

I have chosen this video as it explains two factors that are used to evaluate the savings plan that is the interest rates and the risk consideration. These acts as a vital factor because we invest to get back high returns but would also prefer a safe depositing account. The piece of information I found useful is the list of banks he explains in the entire video.

Video #3 - The advantages and disadvantages of investing in a savings plan.

riyadcosta2 — 2023-11-28 01:16:43 UTC

The video explains about the pros and cons of investing in a savings account. The first advantage of investing in a savings account is that it is a safe form of deposit, risk free investment , you can withdraw the money at any time unless you have not locked it for a specific time. The video also explains the cons of the savings account in which the first one being the tax on the investment, lower interest rates when compared to other types of investments, higher interest rates is possible only if you lock your savings which would reduce the flexibility.

I found this video useful because its very important to know about the advantages and the disadvantages while considering depositing money in your savings account because there are many other types of investments which would allow you to increase your money. The information I found useful is that I didn't know we can withdraw the money whenever we need if we have not locked it.

Video #2 - Types of savings account

riyadcosta2 — 2023-11-28 01:56:51 UTC

This video explains types of savings account you should consider investing. Your goals decide which savings account you should choose. The first one being TFSA which is a tax free savings account offering you a interest rate up to 2.5% which is also taxable. This savings accounts provides you a high rate of return when compared to other savings account. The next one is HISA which stands for High Interest Savings Account offering you a 2.3% interest. This saving account is best for your short term savings plan which can be used as a emergency or a sinking fund also helping you to keep up with the inflation. There is no limit for the deposit you choose to invest. The video also explains more about the RRSP and other savings account which would be best choice for you.

I chose this video as choosing the types of saving account is considered as an important factor while evaluating the savings plan. The piece of information I found useful is various accounts we can consider to get back a high return on our savings plan.

Websites

riyadcosta2 — 2023-11-28 02:12:50 UTC

Website #4 - RESP

riyadcosta2 — 2023-11-28 02:16:23 UTC

This website provides a detail explanation of the RESP which stands for Registered Education Savings Plan. The website has clearly explained what a RESP is , its contribution limits and advantages and more. RESP is also a best savings account to consider as it saves for a child's post secondary education which maybe a full time or a part time studies at a college or a university. It's grants 20% on the first $2500 and the percentages depending on the money you deposit. The subscriber is supposed to pay 1% per month tax on the excess contribution made. The further reading of the website will provide you a clear understanding of the RESP savings plan.

I have chosen this website because we have to evaluate different savings plan in order to choose the correct savings plan to deposit our money. The information I found useful is the grants that the government provides depending on the money we invest.

Website #3 - The factors that influence the savings plan.

riyadcosta2 — 2023-11-28 02:44:13 UTC

This website explains the various factor we must consider while evaluating the savings plan. The first on would be look at the one that would provide us a higher interest rate followed by the income you get, the growth of the economy. In addition to this , it also depends on your age , the trends of the culture , how much wealth you possess and the inflation in the Canadian economy.

I have chosen this website as it provides the correct determinants required to evaluate the savings plan. I found all the information posted in this website useful as all these factors are very important.

Website #2 - The various savings account in Canada

riyadcosta2 — 2023-11-28 02:44:48 UTC

This website provides the best savings account with the high interest rates. The EQ bank provides a interest rate of 3% with no monthly fees and would be considered as the best type of savings account. The next one would be the HSBC offering a total annual interest rate of 6.35% on new deposits which have been started from October 16,2023 and would continue till January 12, 2024 , CIBC giving you a 6% interest rate on your savings bank for your first 5 months including the date considerations and many more banks offering you a desired rate on your savings account you might want.

I have chosen this website because it provides a detailed comparison of various banks and all the details under a single sheet. The information I found useful was the different banks that provides different interest rates on our savings account.

Website #1 - What to consider while choosing a savings plan

riyadcosta2 — 2023-11-28 02:53:01 UTC

This website explains the consideration you must note while choosing a savings account and the taxes you are supposed to pay for it , how do you access you money from the savings account and how the interest is calculated. The first thing to consider is the minimum deposit you must keep followed by the service fees and the interest rates. You should also choose the savings account that would allow you to withdraw and transfer money when required. The interest is usually calculated on how much money you deposit and then you must also know that you have to pay the tax on the interest you earn each year.

I have chosen this website is because it gives answers to all my questions and the information I found useful in this website is how the financial institution calculates interest rates on our savings account.

Images

riyadcosta2 — 2023-11-28 03:16:39 UTC

Image #1 - Factors to evaluate the savings plan

riyadcosta2 — 2023-11-28 03:22:42 UTC

The image provides a clear understanding of the factors to consider while choosing a best savings as you can see above.

I chose this image as these are the perfect factors one must consider in their savings plan and is easy to remember as it is portrayed in a circle format

Image #2 - The various savings plan in Canada

riyadcosta2 — 2023-11-28 03:23:38 UTC

One must know all the available savings plan in Canada in order to find the best on that would suit their needs and offer a high return on their deposits.

I have chosen this image because it consists of all the four savings plan that is TFSA , RRSP , RESP and RDSP

Reflective Questions

riyadcosta2 — 2023-11-28 03:30:04 UTC

Reflection

riyadcosta2 — 2023-11-28 03:43:00 UTC

Question 1

The surprising topic I found was the different interest rates the bank offers on our savings plan and the savings fee some banks charge on our interest rates. It was a very interesting topic as I learnt a lot of new things which I would apply when I start my first savings account as I have not started it until now.

Question 2

I was in a plan to start my savings account in the next month and now I have a complete understanding of where I should deposit my money, what factors I must consider while depositing. After researching through different websites I feel that I would start investing in TFSA as it would offer a desirable interest rate I want and is a risk free investment account. I have also gained the knowledge of the interest rates the different bank provide and now I can confidently deposit my money in a savings account.

Question 3

I would tell them about the different types of savings account in Canada which includes TFSA (Tax Free Savings Account, RESP (Registered Education Savings Plan) , RRSP (Registered Retirement Savings Plan) and RDSP (Registered Disability Savings Plan). I would also explain them the factors to consider while choosing the savings plan.