Savings account
A savings account is an account at a financial institution used for regular savings or temporarily parking money. It usually pays more interest than a chequing account. Usually financial institutions have a no-fee option for this type of account, some have a "high" interest type as well. Savings accounts are typically covered by deposit insurance.
When choosing a savings account, look for:[1]
- What is the interest rate offered?
- Is there a minimum balance or a minimum periodic deposit to earn that interest?
- Are there any transaction fees?
The savings accounts offered by your regular bank or credit union are convenient, but may offer very low interest rates. If parking substantial sums of money, for example for an emergency fund, a downpayment on a property, etc., also consider High-interest savings accounts (HISAs), in particular from online banks, which may offer better rates.
See also
References
- ^ Financial Consumer Agency of Canada (FCAC), Savings accounts, updated March 6, 2018, viewed November 25, 2021.