Canadian Savings advice.

[Lady Pi Phi]

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?

[CanadianTeke]

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.

[Lady Pi Phi]

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.

[CanadianTeke]

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.

[CC1GC]

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

[Lady Pi Phi]

Originally posted by CC1GC
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

[Lady Pi Phi]

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