The best high-interest savings accounts in Canada for 2025 + MORE Mar 18th

—Virginia

Tax on gifts and loans to children in Canada

When you give cash to a child, Virginia, there are generally no tax implications for the recipient. They do not have to worry about paying tax on it, no matter where they live within Canada.

There may or may not be other tax implications, though. So, I will outline cases where tax may result from the act of giving or from a child earning income on a gift.

When does a deemed disposition apply?

If you transfer an asset to a child, this generally results in a deemed disposition. This means that when you transfer stocks or real estate or shares of a private company, it’s as if you sold these assets at their fair market value.

This deemed disposition applies during your life and upon your death. When you die, you are deemed to dispose of your assets. Only assets left to your spouse can be tax-deferred. Assets your children inherit are subject to tax payable by your estate before they are distributed…

Find the best and most up-to-date savings rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated return based on the size of your balance.

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Best high-interest savings account rates in Canada

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 rate is a no-brainer…