A savings account is bank account that’ll securely store cash. Typically, the money in the account earns steady interest while remaining instantly accessible for opportunities, emergencies, or strategic short-term goals.
For kids, a savings account can help establish good money habits early – and track their savings growth over time.
Why do you need a savings account?
- It helps you work towards your goals by keeping your savings separate from your spending money so you’re less tempted to use it.
- It may pay interest each month, and even a small amount can add up over time. The right savings account can help you grow your balance – no effort required.
- It gives you immediate access to your funds with no waiting periods or penalties so you can move and withdraw your money as needed.
What are some savings account options in Canada?
Regular Youth Savings Account (Kids & Teens)
Most Canadian banks offer no-fee youth accounts, that often include things like: no monthly fees, free e-transfers, and small interest. These accounts are great for: Allowance, birthday money, chore money.
Student Savings or Chequing Accounts (Older teens & Students)
Students in high school, college, and university can open accounts with no monthly fees, free debit transactions, and free e-transfers at most banks in Canada. Some may even offer airline points or rewards. These accounts are great for: summer job money, part-time job pay, saving for school supplies or trips.
High Interest Savings Accounts (18+)
Most big banks offer low interest on basic savings. However, some digital-first banks offer high interest savings accounts (HISAs), that typically pay a higher rate than traditional financial institutions with the same benefits of a regular savings account. These accounts are great for: emergency funds, or short-term goals like saving for a trip or a car.
Tax Free Savings Accounts (18+)
A Tax-Free Savings Account is a registered, tax-sheltered account where you can grow your money tax-free over time. You can hold cash, Guaranteed Investment Certificates (GICs), Stocks, Bonds, and Mutual Funds in your TFSA, making it a great account to help you build wealth and save for your long-term goals.
A financial advisor can help you determine the savings account that’s right for you, depending on your age, and your financial goals.
Interested in saving for college or university? Learn more about Registered Education Savings Plans (RESPs).
Interested in saving for your retirement? Learn more about Registered Retirement Savings Plans (RRSPs).