Personal Savings getting you down? There are always smart ways to increase your savings.
How do you find the best Guaranteed Investment Certificate rates? What even is a GIC anyway? Maybe a financial planner or someone at your bank told you to take a look at GICs as a way to save more money. But not everyone knows what a GIC is, how it accrues interest or how to shop for the best GI.... More »
If filing your taxes before the deadline went over your head this year, procrastinating can only make things worse. Unlike sales tax, which is a pay-at-the-pump proposition, Canada’s income tax system is based on self-assessment. Make your money, plan your affairs as best you can and then, pay up.... More »
If you’re like most Canadians, you have a number of charges that come out of your bank account every month. Your gym membership, meal delivery service, beauty box, and streaming services all cost you more than pennies on a regular basis. How do you know if you are getting your money’s wo.... More »
You’re in your golden years and you and your spouse are enjoying retirement. But then one of your children asks for a loan. Should you tap into your savings to help them? Or, is it better to steer them towards a personal loan to help them get out of debt? Use these tips to help you explore wh.... More »
Q: I’m 81, single, female, with around $265,000 in a RRIF (invested in two different financial institutions, both mutual funds). My withdrawal is about $12,000 a year. How can I minimize tax payable (by my beneficiaries) at death? — Lydia A: The tax savings and deferral from contributing t.... More »
Last week, Canada’s biggest bank, RBC, cut its five-year fixed rate by 15 basis points. This gave customers the option to lock in their mortgage rate at 3.74 per cent, for a five-year term. And surely enough, TD Bank and BMO Bank of Montreal followed suit and cut their five-year fixed rates to the same level. Currently, CIBC is asking all customers to call in for more details on its five-year fixed rate, and Scotiabank is not showing the same 15-basis-point cut.
The move by some of Canada’s commercial banks is overdue. Unlike variable-rate loans that are affected by the Bank of Canada’s benchmark rate, fixed rates are tied to the bond market, and bond yields have been sinking over the last two months.
The yield for the Government of Canada benchmark five-year bond fell from a high of 2.48 per cent last October to a low of 1.76 per cent on January 3. At the time of writing this article, the bond yield has recovered slightly but still remains lower than two per cent. This means it’s cheaper for commercial banks to borrow money at a fixed rate and, therefore, they can pass down those interest rate savings to their mortgage customers…