I'm not even a newcomer to Canada but this stuff was never taught to me so thank you!! I was just looking into using a high-interest savings account versus investing in GICs; these vids are super helpful!
Tangerine used to be ING. Scotia took over the bank and rebranded it as Tangerine after ING left. A few years later, my "high-interest" savings account dropped to 0.7%
I have a bank account with KOHO Financial which is earning me 5% interest, 2% cash back, an average of 6.5% extra cash back with 1K+ cash back partners, free credit score, 50% off credit building, no foreign transaction fees. I also have an account with EQ Bank which earns 4% interest on CAD balance, 3% interest on USD balance, and some RSP and TFSA GICs.
Thanks for the video. There are ton of videos circulating regarding HISA and the interest we would receive is much higher than traditional banks. I think it’s important to know a few things before opening such accounts. Yes it’s a good to earn 4% interest but keep in mind it’s interest income and subject to marginal tax at the end of the year. If someone really have excess cash, perhaps a better place to earn a tax efficient income by investing in blue chip Canadian companies that pay eligible dividends. But of cause if someone need cash for emergency, HISA would be a better option but the high interest is not a sure thing unless it’s in cashable GIC. And another thing to consider is what BOC would do with interest rates over the next 1-3 years. If BOC lowers interest rates significantly, I don’t believe 4% interest in HISA is realistic.
the HISA rate will definitely go down in the coming years, so it's just something to take advantage of now. I agree, I would never leave a large amount beyond the emergency savings amount in an HISA, the opportunity cost is far too high! Yes, stocks, and in my opinion index funds are a great place to park them
I talked to the most high-interest saving account agents and they said after the promotional offer is over, and we decide to transfer or withdraw the fund, the gained interest will be deducted. 😢😢😢
Great video it explained HISA's quite well, but from what I understand the interest earned in a HISA is taxable. Could you please explain how this taxation works?
Nah. If you have the money and don't use it as often, might as well get Redeemable GIC instead, which gives even higher interests than HIS. 1.6% for HIS vs 3.9% for Redeemable GIC. HIS has lots of transaction and monthly service charges whereas Redeemable GIC has none whatsoever. Redeemable GIC does have probation periods but usually 1-3 months
Redeemable GICs are also a good option. There are digital banks/financial institutions without monthly fee charges that offer 4-5% though. So just compare and see what works better!
Agreed. Have a one year cashable GIC with one of the big 5 at 4.1% (actually 1 in a set of laddered GICs). Because I'm curious (and funding a trip soon), I did a partial redemption on 3% of the money in it during business hours and online. I figured it would take 1-2 business days for the funds (and accumulated interest on it - well past 30 day probation period) to move. It's now 9 pm and the redemption plus interest already moved into account of my choice (no fees or charges, of course). Seamless. Heidi in Vancouver
Hi, very simple and informative. Thank you! You mentioned you’re using Wealthsimple. So am I. I was wondering if your savings are sheltered in a TFSA in Wealthsimple? Can their cash account be put in a TFSA and if yes, can you share how? Thanks so much!
I have multiple TFSA accounts, some of which are difficult to track. Is there a centralized database where I can find out all of my accounts, or at least remaining investment room?
You can find your remaining investment room on the CRA website; the information is updated once a year, and gives your what you had left on january 1st. You'll have to substract the contributions you did this year.
I believe I've had a HISA opened for like a decade now and didn't know what to do with it. There's only 2 cents in there. I'm also wondering about this too. I believe my mom had one open with 200 in there she wasn't aware of and it affected her tax return.
Not a specific bank, but I'd recommend looking for specific student accounts because they offer a lot of benefits (e.g. no minimum balance to get $0 monthly fees, no annual fee credit card, etc.)
@@LivinginCanada Thank you! your channel has been amazing in helping me figure out the daunting task of managing my money in a new country. You make it SO accessible and I love seeing women taking control of their finances
TD bank and has aeroplan TD visa with minimum $5K sitting in your account, they won't charge you fee for bank cheque books, making bank drafts and at the same time collect purchase aeroplan points for your travels.
Hi, We are planning to move to Ontario by November 2024. As I was searching for blogs related to Canada relocation, I landed to your channel. This particular video is really informative. I appreciate and thanks for posting. Further can you please share me some info on cost of living. What is the descent salary to live in Ontario for a family of 3 (2 adult and a 7 year old kid)? How much in hand it comes after tax deductions? How can I get a house in rent there in Ontario within a gated community as we will be completely new?
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I jump back and forth between Tangernine and Simplli high interest accounts in an attempt to always get the highest rate. Thanks for this video.
I'm not even a newcomer to Canada but this stuff was never taught to me so thank you!! I was just looking into using a high-interest savings account versus investing in GICs; these vids are super helpful!
Tangerine used to be ING. Scotia took over the bank and rebranded it as Tangerine after ING left. A few years later, my "high-interest" savings account dropped to 0.7%
You are taxed on the interest you make so you should simply put everything in a TFSA and if it's maxed out then HISA is a good 2nd option.
I have a bank account with KOHO Financial which is earning me 5% interest, 2% cash back, an average of 6.5% extra cash back with 1K+ cash back partners, free credit score, 50% off credit building, no foreign transaction fees. I also have an account with EQ Bank which earns 4% interest on CAD balance, 3% interest on USD balance, and some RSP and TFSA GICs.
Is there a time limit for Koho’s interest?
@@quincymarquis-brown5803 no but they do a plan/tier thing for the stuff they offer.
Parking my spare cash in Simplii at 5.5%. And when that expires in July, hopefully Tangerine or EQ will have a promo rate.
Thanks for the video. There are ton of videos circulating regarding HISA and the interest we would receive is much higher than traditional banks. I think it’s important to know a few things before opening such accounts.
Yes it’s a good to earn 4% interest but keep in mind it’s interest income and subject to marginal tax at the end of the year. If someone really have excess cash, perhaps a better place to earn a tax efficient income by investing in blue chip Canadian companies that pay eligible dividends. But of cause if someone need cash for emergency, HISA would be a better option but the high interest is not a sure thing unless it’s in cashable GIC.
And another thing to consider is what BOC would do with interest rates over the next 1-3 years. If BOC lowers interest rates significantly, I don’t believe 4% interest in HISA is realistic.
the HISA rate will definitely go down in the coming years, so it's just something to take advantage of now. I agree, I would never leave a large amount beyond the emergency savings amount in an HISA, the opportunity cost is far too high! Yes, stocks, and in my opinion index funds are a great place to park them
Perfect place for an emergency fund or contingency fund or whatever you want to call it.
I talked to the most high-interest saving account agents and they said after the promotional offer is over, and we decide to transfer or withdraw the fund, the gained interest will be deducted. 😢😢😢
Can we get a little more info on this, does this depend on the financial institution, the type of contract you signed ect…?
@@Officialoshanna I don’s know. 😾
Great video it explained HISA's quite well, but from what I understand the interest earned in a HISA is taxable. Could you please explain how this taxation works?
Nah. If you have the money and don't use it as often, might as well get Redeemable GIC instead, which gives even higher interests than HIS. 1.6% for HIS vs 3.9% for Redeemable GIC.
HIS has lots of transaction and monthly service charges whereas Redeemable GIC has none whatsoever. Redeemable GIC does have probation periods but usually 1-3 months
Redeemable GICs are also a good option. There are digital banks/financial institutions without monthly fee charges that offer 4-5% though. So just compare and see what works better!
I would rather buy defensive Canadian stocks or etf.
Agreed. Have a one year cashable GIC with one of the big 5 at 4.1% (actually 1 in a set of laddered GICs). Because I'm curious (and funding a trip soon), I did a partial redemption on 3% of the money in it during business hours and online. I figured it would take 1-2 business days for the funds (and accumulated interest on it - well past 30 day probation period) to move. It's now 9 pm and the redemption plus interest already moved into account of my choice (no fees or charges, of course). Seamless. Heidi in Vancouver
I'm setting up a WealthSimple account - they are asking for my SIN #. I'm assuming this is necessary?
It is necessary for Tax Reporting (T5) as you earn interest.
Yes
In a savings account, you pay taxes on the money you gain.
You are taxed on the interest you make so you should simply pjt everything in a TFSA and if it's maxed out then HISA is a good 2nd option.
Great video as always!
Thank you!
My wealth simple cash account shows that I earn only 2.75%. You said you get 4%! I’m at doing something wrong?
Hi, very simple and informative. Thank you! You mentioned you’re using Wealthsimple. So am I. I was wondering if your savings are sheltered in a TFSA in Wealthsimple? Can their cash account be put in a TFSA and if yes, can you share how? Thanks so much!
I always learn something new on this channel!😃👍
I've been an EQ customer for 3 years and their high interest savings account has not paid over 2.5%. When did they pay 4%?
5k more after 10 years is still not fair
Do you pay tax on interest earned in these accounts??
Thank you for doing the video I requested :)
Hope it's useful!
I have multiple TFSA accounts, some of which are difficult to track. Is there a centralized database where I can find out all of my accounts, or at least remaining investment room?
You can find your remaining investment room on the CRA website; the information is updated once a year, and gives your what you had left on january 1st. You'll have to substract the contributions you did this year.
How much is the capital tax?
How would this compare to the ETFs from 2 weeks ago
Honestly gold seems to be the simplest option to me
Is it worth it to get high interest savings if you have to claim them for taxes tho??
I believe I've had a HISA opened for like a decade now and didn't know what to do with it. There's only 2 cents in there. I'm also wondering about this too. I believe my mom had one open with 200 in there she wasn't aware of and it affected her tax return.
Great video! I prefer money market etfs in a tfsa for tax purposes. Of course this can be combined w other investments.
Do you have a recommendation where to open a first bank account in Canada if I'm moving as a student with a nice sum of savings?
Not a specific bank, but I'd recommend looking for specific student accounts because they offer a lot of benefits (e.g. no minimum balance to get $0 monthly fees, no annual fee credit card, etc.)
@@LivinginCanada Thank you! your channel has been amazing in helping me figure out the daunting task of managing my money in a new country. You make it SO accessible and I love seeing women taking control of their finances
TD bank and has aeroplan TD visa with minimum $5K sitting in your account, they won't charge you fee for bank cheque books, making bank drafts and at the same time collect purchase aeroplan points for your travels.
Can someone living in the US use wealth simple savings account?
Great tips. Thank you.
how to unlock 6% at Tangerine?
It’s a time limit of 5 months
Only for new clients
Great advice 😊👍
Great channel😊👍
Wouldn’t opening new accounts (and closing them) regularly have an adverse effect on the credit score?
All these institutions have your info,they will red flag u eventually.
Mam is your household income 200k dollars a year in Canada? Plz reply. Thanks a lot.
On the way!
Some TFSA withdrawals are instant with some holdings.
Hi,
We are planning to move to Ontario by November 2024. As I was searching for blogs related to Canada relocation, I landed to your channel. This particular video is really informative. I appreciate and thanks for posting.
Further can you please share me some info on cost of living. What is the descent salary to live in Ontario for a family of 3 (2 adult and a 7 year old kid)? How much in hand it comes after tax deductions? How can I get a house in rent there in Ontario within a gated community as we will be completely new?
I Have A Request For You Could You Make A Video About How To Rent Bixi Bike
Thanks! I have already made that last year, you can search my videos
@@LivinginCanada Beautiful Hair
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