Personal Finance

The Official RFD thread for Savings Accounts! (Updated as of 04/15/2018)

Deal Guru
Jan 7, 2002
12759 posts
5184 upvotes
Waterloo, ON
dealsngh wrote:
Mar 16th, 2018 6:58 pm
How is ideal? Is it CDIC insured?
Nope. It's a Manitoba-based credit union. Insurance is also Manitoba-based but not necessarily Manitoba-backed, i.e. Deposit Guarantee Corp. of Manitoba (DGCM) doesn't have the same backing as CDIC.
veni, vidi, Visa
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Dec 14, 2007
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Madmax29 wrote:
Mar 16th, 2018 9:37 pm
I'm not too familiar with tfsa. I did some reading and it was recommended more for investment purposes rather than savings.

I guess I'm just asking if it's worth it to use as a savings account only?
Most people have the opposite problem. They're using it as a savings account and don't realize that its real power is for investing for retirement or another time.

Essentially, it's just a bucket... and you pay nothing on the profits in the form of taxes. If you're not investing, then yes you can use it just as a savings account, but if you're doing RRSPs you may want to consider TFSAs depending on your income ( high income.. RRSP is better. low/medium income.... TFSA is better ). Since you're asking a forum rather than your financial advisor, I'm guessing you're just starting out and don't have high taxable income.

Most BANKS will charge you to take money out of a TFSA, so it depends on your comfort level when it comes to investing and saving.... and also your time frame.
I'd love to write history... in advance.
AMEX Biz Plat 60K 75K | Plat 60K | Biz Gold 40K | Gold 25K | SPG 20K
Newbie
Aug 2, 2017
35 posts
2 upvotes
atomiton wrote:
Mar 16th, 2018 10:56 pm
Most people have the opposite problem. They're using it as a savings account and don't realize that its real power is for investing for retirement or another time.

Essentially, it's just a bucket... and you pay nothing on the profits in the form of taxes. If you're not investing, then yes you can use it just as a savings account, but if you're doing RRSPs you may want to consider TFSAs depending on your income ( high income.. RRSP is better. low/medium income.... TFSA is better ). Since you're asking a forum rather than your financial advisor, I'm guessing you're just starting out and don't have high taxable income.

Most BANKS will charge you to take money out of a TFSA, so it depends on your comfort level when it comes to investing and saving.... and also your time frame.
That's right, I don't have any RRSP or other investments, just some savings. I bank with TD and when I checked out their TFSA online I didn't see any mention of any fee's to withdraw funds.

I don't think I'd be taking money out but nice to have the option. Any recommendation on which bank has the best TFSA, primarily a physical bank as opposed to virtual?
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Dec 14, 2007
2786 posts
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Madmax29 wrote:
Mar 16th, 2018 11:08 pm
That's right, I don't have any RRSP or other investments, just some savings. I bank with TD and when I checked out their TFSA online I didn't see any mention of any fee's to withdraw funds.

I don't think I'd be taking money out but nice to have the option. Any recommendation on which bank has the best TFSA, primarily a physical bank as opposed to virtual?
To be honest... if you want to invest it would be best to actually do some research on investing and go that route. Any bank will steer you toward their products and generally don't have your interests at heart. Many of those investing here in savings accounts want to either have liquid money, or use Savings accounts as the stable cash portion of a portfolio and have equity positions in a variety of accounts, both TFSA and RRSP.

Start here: http://www.cbc.ca/news/business/rrsp/tf ... -1.3369742

Then check out https://www.millennial-revolution.com/
I'd love to write history... in advance.
AMEX Biz Plat 60K 75K | Plat 60K | Biz Gold 40K | Gold 25K | SPG 20K
Deal Addict
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Jul 22, 2015
3521 posts
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Saint-Hubert, QC
Madmax29 wrote:
Mar 16th, 2018 11:08 pm
That's right, I don't have any RRSP or other investments, just some savings. I bank with TD and when I checked out their TFSA online I didn't see any mention of any fee's to withdraw funds.

I don't think I'd be taking money out but nice to have the option. Any recommendation on which bank has the best TFSA, primarily a physical bank as opposed to virtual?
Check this website: https://www.highinterestsavings.ca/chart/
Sr. Member
Jun 27, 2012
750 posts
65 upvotes
Winnipeg, MB
Smart people generally find that only an unbiased professional not selling or representing anything has your best interests at heart. As soon as any kind of compensation or self interest rears its ugly head you can kiss objectivity goodbye. And your money. And watch fees escalate, especially hidden fees. One very good book for beginners is Unshakeable by Tony Robbins. You wouldn't think a motivational speaker would be much of an authority in this area but its a surprisingly good book for beginners as it focuses on hedged, conservative investing that is ideal for anyone just starting. He also stresses taxes and fees, the nemesis of all investors. Its free at your library and torrent sites. If you find it useful, tell others like I'm doing now.
Sr. Member
Jun 27, 2012
750 posts
65 upvotes
Winnipeg, MB
Have you read Unshakeable? Its nothing like his tacky motivational speeches. He should have written it under a pen name.
Deal Addict
Oct 7, 2007
3636 posts
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sonjeffnguyen wrote:
Mar 30th, 2018 9:23 pm
Tony Robbins? Nah. Might as well sign up for that snake oil seminar.
When I was a kid, I saw Tony Robbins on tv commercials all the time and I thought he wasn't a real person but just something that looked like a real person. Seriously. He did not seem human to me at all.
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Apr 16, 2006
5963 posts
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Madmax29 wrote:
Mar 16th, 2018 9:37 pm
I'm not too familiar with tfsa. I did some reading and it was recommended more for investment purposes rather than savings.

I guess I'm just asking if it's worth it to use as a savings account only?
Depends on what your needs are for the cash and what sort of cash you've already got for your TFSA.

I'm currently re-building my emergency fund that I raided when I bought a house a while back (yeah, I know, not the best idea, but I decided to take the chance; no issues so far). They say your emergency fund should have somewhere between three and six months of post-tax savings in case an emergency arises (you lose your job, your partner loses their job, etc). I currently keep my emergency fund in my TFSA; it earns interest (well, at around the rate of inflation with my financial institution, but at least it keeps up with inflation), is accessible within 48 hours without fee, the interest earned is tax free, and it's 100% safe (which is what an emergency fund is supposed to be). The TFSA room I've got leftover I use for investments when I have spare cash.

Will I make more money if the TFSA is all investments? Probably, but an emergency is typically something you don't see coming and may require immediate access to funds. I don't want to be at the mercy of the markets when cashing out my TFSA if I need the money immediately and pay whatever the markets demand for those investments at that time. The alternative is to keep my emergency fund in a regular savings account, and that might eventually be where this money ends up going, but for now, given my TFSA is not maxed out, it makes no sense to pay tax on interest earned on this money when I can keep it in a TFSA, earn very similar interest, pay zero taxes on it, and grow my TFSA room a little bit for the following year in the meantime.

There's no single right answer. What works for me may not work for you and vice versa.
Newbie
Oct 1, 2017
82 posts
21 upvotes
Thread needs a little updated OP. Meridian is offering 3% on new HISA accounts for next 4 months.
Newbie
Oct 1, 2017
82 posts
21 upvotes
MoneyHypeMike wrote:
Apr 3rd, 2018 7:07 pm
OP updates when himself or someone else check if rate increases. He isn't going to browse each bank website everyday to see if rates changed.
I know....my post said that Meridian is offering a bonus 3% so that needs to be updated in op.
Deal Addict
Jun 28, 2013
2322 posts
768 upvotes
YUL/YVR
For those that don't need a brick n mortar, I'm pretty statisfy with my Advantage Account's 2.4%

Free e-transfers too , as long as your balance is over $1000.
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Jan 4, 2009
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on the links
pandabearbeard wrote:
Apr 3rd, 2018 9:57 pm
I know....my post said that Meridian is offering a bonus 3% so that needs to be updated in op.
The thread OP isn't maintained in a timely manner. Case in point, post #2614 on Jan 24 mentions an Alterna increase yet the OP doesn't reflect it. Achieva, Accerlerate, among others, are also old rates.

There are better sources for interest rate comparisons such as High Interest Savings

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