First, Understand the Purpose of Your Savings

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Before choosing where to store your money, ask yourself one key question: What is this money for?

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There are generally three categories of savings goals:

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1. Short-Term Savings (0–2 years)

   • Emergency funds

   • Travel

   • Large upcoming purchases

2. Medium-Term Goals (2–5 years)

   • Down payment on a home

   • Starting a business

   • Moving

3. Long-Term Growth (5+ years)

   • Retirement

   • Education savings for children

   • Financial independence

 

Each of these categories requires a different kind of account. Let’s break them down.

 

1. High-Interest Savings Accounts (Short-Term Needs)

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If your goal is short-term stability—not growth—you’ll want your savings somewhere safe, liquid, and earning some interest.

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Best Option: High-Interest Savings Account (HISA)

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Look for accounts with:

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• No monthly fees

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• Competitive interest (ideally 3.00% or more)

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• Easy withdrawals

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Some excellent options include

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• EQ Bank Savings Plus Account – No fees, consistently competitive rates

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• Tangerine Tax-Free Savings Account – Trusted big bank, occasional promo rates

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• KOHO High-Interest Savings – App-based, hybrid account with savings perks

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Explore these and more in our Best Overall Investment Accounts guide.

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2. Tax-Free Savings Accounts (TFSAs)

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For Canadians, a TFSA is one of the most flexible, powerful accounts available. Despite the name, a TFSA isn’t just a savings account—it can be an investment account too. All interest, dividends, and capital gains earned inside a TFSA are completely tax-free.

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Best Use:

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• Medium- to long-term goals

• Investing in ETFs, stocks, or high-interest funds

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Our Top Picks:

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Wealthsimple TFSA

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• No fees, no minimums

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• Automatic investing or self-directed trading

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• Earn up to 4.00% on uninvested cash

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• Ideal for hands-off investors

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Open a Wealthsimple TFSA today to start earning tax-free returns with zero hassle.

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Questrade TFSA

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• Free ETF purchases, low-cost stock trading

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• More control, research tools included

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• Ideal for more active investors

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Click here to open a Questrade TFSA—get $50 in commission-free trades as a welcome bonus.

Still unsure? Compare these options in our Best Overall Investment Accounts.

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3. Registered Retirement Savings Plans (RRSPs)

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For long-term retirement savings, the RRSP is hard to beat. Contributions reduce your taxable income, and growth is tax-deferred until you withdraw—ideally in retirement, when your tax rate is lower.

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This makes RRSPs especially powerful for high earners or those expecting a lower income in retirement.

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Our Top Picks:

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Wealthsimple RRSP

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• No trading fees, auto-invest portfolios

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• Easy RRSP contribution tracking

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• Earn interest on idle cash

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Open a Wealthsimple RRSP here—perfect for new investors who want automation with zero fees.

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Questrade RRSP

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• DIY trading and ETF investing

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• Low fees, high flexibility

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• Includes advanced tools for seasoned investors

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Start your Questrade RRSP now and receive bonus trade credits as a new client.

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Not sure whether TFSA or RRSP is better? Many Canadians use both—and you can compare them in our Best Overall Investment Accounts breakdown.

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4. Hybrid Accounts (Spending + Saving)

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Some new accounts blur the lines between savings and checking. These hybrid accounts offer daily spending tools (e.g., a card or app) alongside interest on your balance.

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Examples include:

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• Wealthsimple Cash Account – A no-fee account that earns interest like savings, but works like checking

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• KOHO Prepaid Mastercard – Spend and save in one place, with cashback and savings perks

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These are ideal for people building emergency funds or wanting to earn while staying liquid.

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Bonus: Where Not to Keep Your Savings

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Avoid these savings mistakes:

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• Stashing cash in a chequing account – Most pay 0% interest

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• Putting emergency funds in a stock portfolio – Too volatile

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• Leaving long-term savings in cash only – You lose out to inflation

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The Psychology Behind It

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Where you keep your money also affects your behavior. Keeping emergency funds separate from investment accounts reduces emotional spending. Automating TFSA or RRSP contributions keeps your focus long term, not on timing the market.

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Morgan Housel explains that “personal finance is more personal than finance.” That’s why choosing the right home for your savings should reflect both your goals and your comfort level.

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Final Thoughts:

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You don’t need to get it perfect—you just need to get it started. A good savings account used consistently is better than a perfect strategy delayed forever.

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Whether you're saving for tomorrow or building long-term wealth, make sure your money is working as hard as you are.

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Ready to Grow Your Savings?

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Open a Wealthsimple TFSA – Hands-off, tax-free growth

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Get started with a Questrade TFSA – Take control with commission-free ETFs

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Explore Wealthsimple RRSP – For automated, tax-deferred retirement savings

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Compare all top picks in our Best Overall Investment Accounts