Ways to Save

High Interest Savings Account:

  • The bank pays you interest on your deposits.
  • The rate of interest changes
  • The interest is slightly higher than a regular savings account.
  • This is a very safe kind of account.
  • You could use it to save money for the short, medium or long term. You can withdraw this money whenever you like.


  • It means that you lend your money to a government or a corporation.
  • They pay you interest on your loan over a period of time called a term.
  • When the term is over, you get all of your money back.
  • Government bonds in Canada are very safe.
  • Corporate bonds hold some risk.
  • You could use bonds to save for medium or long-term goals.


  • You buy shares in a business that is publicly traded on the stock market.
  • This can be very risky, because you can lose all of your investment.
  • Some people buy stocks to try to make money fast.
  • It is less risky to hold onto stocks for medium and long-term savings goals.

Registered Retirement Savings Plan (RRSPs):

  • This is a way of saving on taxes while you save for retirement
  • When you put money into an RRSP, you can invest it as you choose, in savings accounts, GICs, stocks, and so on.
  • This is a very useful way to save if you are working and paying taxes.
  • It is not as useful if you are living on a very low income or collecting social assistance.
  • You can open an RRSP at a bank, credit union, or investment management company.

Tax-Free Savings Account (TFSA):

  • This is a way of saving and investing money without having to pay tax on the interest you earn.
  • You can open a TFSA at your bank if you are 18 or older, a Canadian resident, and have a Social Insurance Number.
  • There are rules about how much you can put into the account in a year.
  • You can invest the money in the TFSA as you choose, in savings accounts, GICs, and so on.

The Registered Disability Savings Account (RDSP):

  • Savings plan made available to people who qualify for the Federal Government Disability Tax Credit
  • Long term savings plan to ensure savings for a disables person

    Eligibility criteria:

    • SIN
    • Be eligible for the Disability Tax Credit
    • Under the age of 59 (to receive the grant or bond, your must be under 49)

    What’s an RDSP?:

    • Every 1$ your put in, the federal government can give you a grant and match up to 3$ more depending on family income ( 3 500$/year based on contributions)
    • The government can put up to a 1000$/ year and 20 000$ in your lifetime (bond)
    • If you have the grand or the bond, your money is locked until the age of 59

    Step to open an RDSP:

    • File your taxes
    • Qualify for the Federal Government Disability Tax Credit
    • If you don’t receive it yet, please get the attached form filled out by your doctor and send it to the address given
    • Go see a financial institution
    • Bring your SIN and photo ID to the bank

The Canada Learning Bond:

  • It’s a government benefit for low-income families
  • It helps your to save for your child education after high school
  • If you have a child born on January 1st ,2004 or after and if you are getting the National Child Benefit Supplement, you can apply for an 500$ RESP
  • You don’t need to deposit any of your own money
  • Each year that your child qualifies for the NCBS, the government will put an other 100$ in the RESP to a limit of 1500$
  • It finishes when the child turns 17
November 4, 2014
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