Canadian Savings advice.
 

Look at me, another new thread. Ya, I'm bored at work.

Anyway, for those Canucks out there. I started another thrad today about buying a used car. I still need to save quite a bit in order to purchase the car. I was wondering if there is anything I can can put my money into that will give me a high interest rate so I can save quicker. Also, I'm looking for something I can put my money into that if and when I take it out I don't have to pay an arm and a leg in taxes.

Any advice?

GIC's are always a good option, the interest depends on how much and how long you put the money away for. You can have a term as short as a month or as long as 25 years. I don't think there is any tax when you withdraw your money. Money markets are also a good deal, and while slightly riskey tend to net higher interest. I am not sure whether they are taxed though.

How do GIC's work? Can I contribute to it on a monthly basis, or do I have to put a lump sum in and wait for it to grow? Or do I have to buy multiple ones depending on what kind of return I'm looking for?

I've made an appointment to see someone at the bank, but I'm curious now.

You can put money in one lump sum and watch it grow, or you can contribute after a term (ie a week, a month, 6 weeks etc) they are pretty flexible.

You could just open an ING direct account that allows for access to your money at any point with comparable savings of a GIC.

Thanks! I think I'll look into that

I opened up an ING account this morning, but I'm meeting with my bank on saturday too. Too much savings never hurt anyone.