While saving your money and investing your money may seem like you must choose one or the other, some accounts give you both the security of saving and the growth possibilities of investment. Here’s how you can (and why you should!) earn while you save with a High-Interest Savings Account.
What is a HISA?
Generally speaking, at any given financial institution, a High-Interest Savings Account (HISA) accumulates compounding interest. This makes High-Interest Savings Accounts a better option for growing your savings, compared to other basic or entry-level savings accounts.
When to open a HISA.
A HISA is the perfect place to hold your cash as it earns interest, all while still being easily accessible; especially if you’re not quite sure what your savings goals are just yet. It’s the perfect spot to build an emergency fund to cover unexpected expenses, temporarily hold money you may move to another investment option later, or save for a car, home, or vacation.
Save more, earn more.
While chequing accounts, GICs, mutual funds, and stocks are all great options for setting money aside, interest-earning rates and accessibility can vary widely. Every deposit you make into a HISA accumulates interest at a competitive rate while still allowing you easy access to your funds when you need it. As inflation continues to be a concern for many Canadians, opening a HISA may offer a way to make your money work harder for you, while offering flexible accessibility.
Flexibility is key.
Saving for your short-term goals is just as important as saving for long-term ones, which is why the built-in flexibility of a HISA matters. Unlike a fixed-term investment such as a GIC, you can access the funds in your HISA without having to give advanced notice. After setting your account up online in just a few minutes, you can connect your HISA directly to your other accounts-including ones you have with other banks-to start transferring funds easily online.
With no monthly fee and no minimum balance requirements, a HISA is an affordable way to help you reach your savings goals–whatever they might be.
The stuff we have to say.
This article is provided for general information purposes only. It is not to be relied upon as financial, tax, or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, fees, and other investment factors is subject to change without notice and Cost Capital Savings Federal Credit Union is not responsible for updating this information. All third-party sources are believed to be accurate and reliable as of the date of publication and Coast Capital Savings Federal Credit Union does not guarantee the accuracy or reliability of such sources. Readers should consult their own professional advisor for specific financial, investment, and tax advice tailored to their needs to ensure that individual circumstances are considered properly, and action is taken based on the latest available information.
