top of page

SAVINGS ACCOUNTS

Meet Britney

  • Britney needs your help. Follow her along on a financial journey, as she makes mistakes, fixes them, and learns her lesson.

  • Click-through time: ~6 minutes.

  • Test your knowledge with a quiz and our game: "Talk Like a Banker"!​​

"Britney is on her way to get an iced coffee when she sees a billboard advertising..."

Working on a laptop
How Savings Accounts Work

What is it Used for?

Your savings account is your rainy day fund. It's a cash buffer that you can draw from if you run out of money.

 

Savings accounts earn interest on their balance. If you stash your rainy day fund in your chequing account, you'll miss out on additional income.

 

Every month, your bank pays you a small percentage of your savings account's balance as interest. The interest is deposited into your account and compounded daily (you earn interest on previous interest).  

 

If you're still in high school, don't worry - you can open a savings account on your own even if you're not 18/19 yet.

Key Features

Interest Rate 

  • Higher rates mean you earn more.

 

​Monthly Transactions and E-transfers

  • They're used to transfer money between your chequing and savings accounts

  • Savings accounts offer unlimited deposits

  • They may limit the number of free monthly transactions (money leaving your account) and e-transfers.
    ​

Special Promotions

  • Don't completely ignore them but don't be swayed by them. 

  • Always consider the regular rate first.  A special promotion will run out after a few months and you'll be stuck with regular rate.

Savings Accounts Tip

Key Features Tip 

​

For your savings account, look for a high interest rate and enough free transactions for your needs. 

Make sure you can easily transfer money to and from your chequing account.

Savings Accounts Tip

Research & Compare Tip

​

Websites, like www.ratehub.ca are useful. You should also google the name of the bank and the product you are checking. For example, “RBC savings account”. Be sure to investigate links that say ‘legal disclaimers’, ‘learn more’, ‘additional features’, 'view details', or the footnotes above certain key words.

Savings Accounts Tip

RESP Tip #1

​

Ask your parents / primary caregiver if they opened a RESP for you (registered education savings plan).  This account provides tax benefits and also gives access to certain government education grants - it's free money that goes towards your post-secondary education.

Savings Accounts Tip

RESP Tip #2

​

If you you're still <15, you can open a RESP on your own to receive the government grant.

  • If your family is low income, you don't need their contribution to get the grant.  Make sure you don't miss out on this opportunity.

  • If your family is not low income, ask if they could start making contributions or contribute your own money.  Whatever you can come up with, the government will match.

bottom of page