When I was in university, I was introduced to high-interest savings accounts, and TSFAs. I remember putting money into a CIBC high-interest savings account and being so excited when I saw I had made about $50 in interest. I thought, Wow, my money is growing! lol During tax season, I saw how much of that interest was being taxed. I don’t remember the exact amount, but it felt like almost half of that $50 was gone!!! I thought what benefit did I really get from this? SMH So I called CIBC and closed the account. That experience pushed me to learn more about registered accounts and their tax advantages. I had so much unused TFSA contribution room at the time, and my TFSA was basically just sitting there. I started investing through mutual funds at the bank at that time....and now we have come a long way. Today, my priority is making the most of my registered accounts, especially my TFSA and FHSA. And then a HISA ...maybe? Do you have a HISA? Which accounts do you prioritize, especially if you haven’t maxed out your registered accounts yet?
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11 Comments
Jo
@linnjoanne · 26d
Omg girl I remember when my bank told me to put money in GIC and I did and only made $40 after a year and I had 4k towards it🤣🤣 bye. When I was younger I thought putting money in a tfsa in the bank would make my money grow I was so silly back then HAHHAHA
Fraidoon Latifi
@latifi · 27d
Have the same experience, 4 years ago when I was new in Canada, the only thing I learned from my searches was high saving accounts, and I was happy to have some extra money in savings then pay back in tax season, it is just 6 months that I newly learned about investment and all my accounts. These banks doesn’t want you to know , they all want your money to be in their pocket to do businesses with that money.
Shub @arorshub · 24d
I don't have a high interest savings account yet, but reading your post maybe I'll look into the taxes a little bit more on HISA capital gains. Because I also just want to prioritize my tsfa first, before opening up a non registered account
Ayush Mehta@learn_n_grow · 25d
This is so true, interest rates are so low anyway, and then you get taxed on gain! Ill only prioritize a HISA once i max out my registered account
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