Why retirement planners are getting defensive + MORE Oct 1st

Here’s a round-up of news for Canadian investors this week.

BlackBerry Ltd.

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Featured RRSP Accounts

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EQ Bank

Build your retirement savings with 1.50% interest, tax-deferred contributions and zero fees.

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Registered GIC rate

Earn a guaranteed 3.00% in your RRSP when you lock in for 1 year.

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Best RRSP rates

See our ranking of the best RRSP accounts and rates available in Canada.

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MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada…

Of course, those with guaranteed-for-life, taxpayer-backed, defined benefit pension plans may well be in an enviable position. I often wonder why the usual media financial profiles of senior couples even bother when their subjects both enjoy such pensions.

Sadly, most of us are not in such a fortunate position. We may have cobbled together a couple of small private-sector pensions over the years, but for the most part what wealth we have is in RRSPs/RRIFs, TFSAs and non-registered savings, which rise and fall with financial markets. From what I see at the new Retirement Club (which I wrote about in this space this past summer) most of those in the so-called retirement risk zone realize they are in effect their own pension managers, which means paying close attention to the markets…

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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MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings of major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.

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…

—Sarah

Hi Sarah, my wife read this same article and thought the same thing. What could these people have done to save tax and why did they owe so much? For those who didn’t see the article, it is entitled “Ontario woman says government took ‘every cent’ of parents’ savings.” 

It is a story about two young adults outraged by the amount of wealth lost to taxes—$659,000—when their parents, in their early 60s, both passed away within a year of each other. 

I can sympathize with the children, thinking they were going to get this much money only to find they were getting substantially less. Without understanding why, I’m sure it was confusing and hurtful. Let’s walk through why the tax was so high and what if anything could have been done…