The best high-interest savings accounts in Canada for 2023 + MORE Jan 9th

If nothing else, tax-free savings accounts (TFSAs) have been a boon to Canadian financial writers and bloggers. Two noteworthy examples: A blog on Boomer & Echo by CFP Robb Engen (also a MoneySense ETF expert panelist for the annual Best ETFs in Canada feature) comparing TFSAs to registered retirement savings accounts (RRSPs), and a Cash Flows & Portfolios blog that goes so far as to declare that the TFSA may be all one needs to retire on. 

I don’t know about the second post, but I do agree we’ve come a long way from 2009. It was then when my wife and I made our own first tentative $5,000 contributions to our TFSA, thinking at the time it seemed like a mere drop in the bucket. Even then, right at the start of the new year, we maximized contributions to all our newly opened TFSAs, including our daughter’s, who was fortunate enough to have turned 18 just in time to qualify.

Every year since, as close to January 1st as possible, we faithfully add the maximum contribution amount (initially $5,000, briefly $10,000 and currently $6,500) to each of those accounts…

Welcome to The Fourth Estate, our new column that looks at investing and retirement planning through a journalistic lens, asking the questions of who, what, where, when and, of course, why. For our first article, financial planner and writer Robb Engen looks at how high inflation affects investments.

In Canada and abroad, 2022 can be summed up as the year in which nothing (or almost nothing) worked. Canadian, U.S. and international stocks got clobbered, while bond returns were nearly as bad. The classic 60/40 balanced portfolio had its worst performance since 2008.

The culprits? Stubbornly high inflation, Russia’s war in Ukraine, rapidly rising interest rates, and stock markets coming back to earth after a period of greed and excess.

The result? Inflation, as measured by the Consumer Price Index (CPI), soared to 8.1% in June 2022 and is still hovering at 6.8% six months later, taking a big bite out of Canadians’ purchasing power.

The Bank of Canada (BoC) has embarked on a series of interest rate hikes designed to squash inflation and cool the economy…

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Generally, savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest is a no-brainer. This type of account is referred to as high-interest savings account (HISA). We break down what you should know about HISAs and give you our picks for the most competitive interest rates in Canada.

Summary
The best high-interest savings accounts in CanadaWhat to know about HISAsAlternatives to HISAs

The best high-interest savings accounts in Canada

Best high-interest savings account rate• Saven Financial High Interest Savings Account• Motive Savvy Savings AccountBest for interest rates and no service fees• EQ Bank Savings Plus Account*Best regular interest rate at a credit union• Maxa Financial High-Interest SavingsBest e-savings account• Neo MoneyBest regular interest rate in a hybrid account• Wealthsimple CashBest promotional rate• Tangerine Savings Account• Simplii Financial High Interest Savings Account*Best tiered interest product• Scotiabank MomentumPlus Savings Account*• LBC Digital High-Interest Savings Account

Best high-interest savings account rate

Saven Financial High Interest Savings Account

This HISA may sneak under the radar, but once you see the rate you will be impressed…

There is a plethora of options to sort through for building a retirement savings plan, and anyone can be forgiven for wanting to trim a branch or two off that decision tree. That’s why many people choose to streamline their investment strategy with a focus on target-date funds.

A target-date mutual fund or exchange-traded fund (ETF) is basically a one-stop shop for a retirement saving strategy. Canadian investors simply choose the year they would expect to stop working, then buy a target-date fund targeting the same or nearly the same year.

At this point, target-date investors pretty much go back to whatever else they were doing. Behind the scenes, however, investment managers will be gently nursing the savings toward the investor’s retirement goal. If you decide to go with a target-date fund, your role in the process is to continue to make regular contributions and check in occasionally to ensure everything is on track according to your expectations.

Simple, right? Well, that’s the plan…

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Best credit cards in Canada for 2023
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Canada’s best credit cards 2023

By Lisa Hannam, Margaret Montgomery and Justin Dallaire on  January 5, 2023

Finding the right credit card could save you hundreds, if not thousands, of dollars a year. Whether you’re looking for lower fees, more rewards or simply valuable perks like travel medical insurance or rental car savings, every dollar counts. If you use your credit card wisely, pay off your balance monthly and find the right rewards program for you, and you are sure to come out ahead. There’s a slew of credit card options out there, and it can be challenging to find the best deal—but this list of best credit cards in Canada is here to help…