How much can I really save with a savings account?

A savings account is not a get-rich-quick scheme; the best way to look at a savings account is that it sets up a system to be sure you don’t spend every dollar you earn, and to help grow your money for any future savings goals. Even with relatively low interest rates (the highest interest rates are with online-only banks) any money you place in a savings account is earning more interest than leaving it in your chequing account (or your wallet). If you are using a TFSA or RRSP, you are also saving money in two ways; in addition to your savings amount you’ve set aside, you are saving the taxes earned on the interest with a TFSA, while your RRSP contributions lower your taxable income for the year, saving you extra money come tax season.

What is a bundles savings account?

If you are looking for additional banking services in addition to a savings account, many banks offer a bundling option that includes extra services at a discount rate. Both online-only and traditional banks offer bundle services, which can often be customized to your particular needs and savings goals. Many banks also offer a family bundle, where all the members of a household can save on fees if they do their banking with the same company, something that can be particularly advantageous for larger families.

How can I avoid savings account fees?

Traditional brick and mortar banks offer increased accessibility and customer service, but they also have the highest account fees. Many online-only banks offer savings accounts with no fees at all, which can be a great option for those looking to save as much money as possible. If you use traditional banking services like ATM machines or prefer the option of in-person meetings, a savings account with a traditional bank may be worth the extra fees. However, if you are relatively tech savvy and are comfortable with using tools like chat and email for customer support issues, an online-only bank is the best way to avoid savings account fees.

Gabriel Sigler

Born and raised in Montreal, Que., Gabriel is a graduate of Concordia University’s Journalism department, and the founder and editor-in-chief of Bad Feeling Magazine. For WealthRocket, he specializes in credit card reviews. He has also written extensively for Bad Feeling, along with the Toronto Star, and Cult MTL.