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A savings account may have been your first bank account, but savings options don't end there. Consider a money market fund, U.S. dollar savings account, GIC or specialty account.
- The best savings accounts pay high interest rates, charge few fees and provide the accessibility you need. A savings account with an excellent APY...
- The type of savings account should reflect your financial needs and goals. You may have one high-interest savings account to hold your emergency fu...
- An asset is something that has a positive value, and a savings account falls under this umbrella, assuming it has a positive balance. Savings accou...
- On this page
- What to consider when choosing a savings account
- Accessing the money in your savings account
- How your financial institution calculates interest
- Paying taxes on money in your savings account
•What to consider when choosing a savings account
•Accessing the money in your savings account
•How your financial institution calculates interest
•Paying taxes on money in your savings account
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. 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 your financial institution will pay on your account balance. Financial institutions may offer high-interest introductory rates. These run for a certain period. After the time's up, the interest rate may 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 like 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.
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 occasionally.
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
You may have to transfer money from your savings account to a chequing account before you can withdraw. In this case, it may take extra time to access the money.
Carefully review the terms of the account to find out how your financial institution applies 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:
You usually have to pay income tax on the interest earned in your savings account. Each year, your financial institution will send you a Statement of investment income (T5). You must submit it along with your personal income tax return. A T5 shows how much investment income you earned for a given tax year. This includes income you earned from interest in bank accounts.
Learn how to read the information on your T5 slip.
If your goal is long-term savings, think about getting a Tax-Free Savings Account (TFSA). You don’t pay tax on the interest you make and the money you withdraw from a TFSA.
Learn more about the Tax-Free Savings Account.
Oct 14, 2021 · If you’re building an emergency fund, rename your account Emergency savings. If you’re saving for a home, call it Down payment. Better yet – get specific. Call it Buy a home in 2024. The more specific and tangible the name for your account, the more likely you’ll be to achieve your savings goal.
Oct 18, 2024 · A savings account is a safe place to park money you want to save for another day. Savings accounts and chequing accounts serve different purposes. Savings accounts pay interest on your balance – the rate of interest depends on the type of account you choose. It can be easy to grow your savings with regular, automated transfers to a savings ...
Nov 12, 2024 · A chequing account is a bank account you use every day to buy essentials, pay bills, and receive a paycheque. A savings account is a great place to park money you want to set aside as you earn interest on your balance. Having both a chequing and a savings account can help you manage your money, budget for expenses, and save for a goal or a ...
A joint account is a chequing or savings account that is in the name of two or more people (at TD, you can add up to 9 people on a joint account). The account holders can conduct transactions (including withdrawals and debits) and sign payment instruments, regardless of who deposited the funds in the account and whether this action creates or increases an overdraft on the account.
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Oct 28, 2024 · The interest rates you earn for child savings accounts, student accounts or Christmas Club accounts may be lower than high-yield or even regular savings accounts. Specialty accounts may have ...
