How to go about securing the best savings strategy in Canada.
Table of contents GICs Bonds ETFs Mutual Funds If you’re using your tax-free savings account solely to deposit cash over the long term, Certified Financial Planner Trevor Kearns says you’re not using the TFSA to its full potential. You have more options (and better potential gains) than th.... More »
As the COVID-19 outbreak continues to batter markets and force more businesses to close their doors, talk of a looming recession grows louder. There is no question that many more jobs are at risk, and for those whose livelihoods are particularly vulnerable, now is the time to take stock of your fin.... More »
In an earlier column, we looked at how to optimize the timing for taking your Canada Pension Plan benefits—early or late. We also touched on the issue of “survivorship,” mentioning retired advisor Warren Baldwin, who decided to take his own CPP at age 66, in part because of limited options for.... More »
On April 8, 2020, the Insurance Bureau of Canada released the following statement: To help Canadians cope with the financial impact of COVID-19, the Insurance Bureau of Canada (IBC) member companies are offering substantial consumer relief measures. For consumers whose driving habits have changed si.... More »
In ever-evolving circumstances, Prime Minister Justin Trudeau has announced an $82-billion stimulus package to help Canadians and businesses amid the COVID-19 pandemic. These measures aim to stabilize the economy and support Canadians facing hardships. The announcement comes as part of Canada’s C.... More »
If you faithfully pay your loans, mortgage and credit cards each month, then you’ve probably received a call or letter from your bank with the news that you were pre-approved for a credit increase or a line of credit.
You might be thinking, “I don’t even use all the credit I currently have. I don’t need an increase.”
But guess what? Accepting a pre-approved credit increase may help your credit score.
Why Were You Offered a Pre-approved Increase?
If you already have an account with a bank, they may pre-approve you for a credit increase or a new line of credit, because they recognize you for being a good customer. By diligently paying off your card every month and staying on top of your current loans, your bank now trusts that you will pay them back if they increase your limit.
How Does an Increased Credit Limit Improve Your Credit Score?
No hard check
Usually, when you apply for a loan or request a credit increase, your bank sends in a request to the credit bureau for your current credit score…
Investments like stocks, mutual funds, or cryptocurrencies carry some level of risk which you might shy away from for a variety of reasons. Whether you’re saving for college, getting ready to buy a house, or nearing retirement, if you’re looking for safer investment options, here are some of the most common low-risk alternatives for Canadians.
While large, traditional banks may only offer minuscule interest rates, some high-yield savings accounts will pay you a reasonable rate of return. Newer, online-only banks offer savings accounts that pay as much as government bonds. Examples include EQ Bank, Motusbank, and Wealthsimple, which each pay at least a 2% annual interest.
High-interest savings accounts can be a great investment option because your cash is liquid—this means you can withdraw your funds whenever you chose without penalty. Plus, savings accounts are insured for up to $100,000 by the Canada Deposit Insurance Corporation, so you won’t lose your money if the financial institution fails…