Saving money has so many proven benefits and it is one of the best financial habits that you can adopt. If savings doesn’t come easy to you, opening a savings account can help.
Why is savings important?
There are multiple reasons to save your money
Save for emergencies
Save for Retirement
Save incase of unemployment
Save for travel
Save to make a big purchase
Types of Savings accounts
1. RESP
A Registered Education Savings Plan is an account focused towards saving for a child’s education. Investments inside an RESP grow tax-free which means no taxes are charged on capital gains and no income tax is charged on interest and dividend payments. More importantly, the government will pay you a grant of up to $7,200 over the life of the plan. Know more about an RESP account:
Get Government Grants
Grow your savings tax-free
Diverse investment options
Friends and family can contribute
The account can stay open for 36 years
2. TFSA
Individuals older than 18 and those who have a valid social insurance number can open a TFSA (Tax-free Savings Account) and set money aside for it to grow tax-free throughout their lifetime. Any amount contributed as well as any income earned in the account (investment income or capital gains) is also tax-free. Benefits of a TFSA include:
