Each phrase can have up to five words - always choose the most appropriate answer.
What's Next?
STILL IN HIGH SCHOOL?
There's one more important thing to do.
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.
If you don't have a RESP and you're still <15, you can open a RESP savings account 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.
Everybody needs a savings account...
Research Tips
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.
Websites, like www.ratehub.ca or www.ratesupermarket.ca, can help you compare offers.
Click on the diagram to find out how savings accounts work.
This will open our video player.
Click on the icon to join Britney and sprint through savings accounts. It should take you about 6 minutes.
Once you've opened an account...
choosing a bank for your savings account
We've done some research comparing Canadian savings accounts. We've chosen to include a sampling of accounts from various banks. They are sorted by interest rate. Our table does not include any special promotions, only the regular rate.
These are real product offerings.
If you've found a better account, open your new account, then close the old one.
Britney is on her way to get an iced coffee when she sees a billboard advertising...
Updated September 2, 2022.
Use our tables as a guide and remember to do some research on your own.
savings accounts
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.
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.
Own your savings account, step-by-step.
Play 'Talk Like a Banker' - FinStart's glossary game!
Everybody needs a savings account - make your savings work for you.
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.
how it works
They're multiple choice - always choose the most appropriate answer.
Test your knowledge - take a FinStart quiz!