Best Savings Accounts for Canadian Students: Earn Interest and Stay Organized
Find the top savings accounts for Canadian students and learn how to make the most of your money.
Best Savings Accounts for Canadian Students: Earn Interest and Stay Organized
As a Canadian student, managing your finances can be overwhelming, especially when trying to balance classes, part-time jobs, and social life. However, having a solid savings strategy is crucial to securing your financial future. By opening a high-interest savings account, you can earn interest on your money, stay organized, and avoid unnecessary fees. In this article, we'll explore the top savings accounts for Canadian students, highlighting their key features, interest rates, and fees.
Understanding Canadian Savings Accounts
Before we dive into the best savings accounts for students, let's quickly review the key features of a Canadian savings account. In Canada, savings accounts are regulated by the Office of the Superintendent of Financial Institutions (OSFI) and are insured by the Canada Deposit Insurance Corporation (CDIC). The main types of savings accounts in Canada are:
- High-interest savings accounts: These accounts offer higher interest rates than traditional savings accounts and are often available online.
- No-fee savings accounts: These accounts have no monthly fees and are a good option for students who are just starting out.
- Student savings accounts: Some banks and credit unions offer special savings accounts for students, which may come with lower fees and higher interest rates.
Top Savings Accounts for Canadian Students
Here are some of the top savings accounts for Canadian students:
| Account Name | Interest Rate | Fees | Minimum Balance | Online Platform |
|---|---|---|---|---|
| Tangerine Savings Account | 2.45% | $0 | $0 | Tangerine.ca |
| EQ Bank Savings Plus Account | 2.30% | $0 | $0 | Eqbank.ca |
| President's Choice Financial Savings Account | 2.20% | $0 | $0 | Presidentschoice.ca |
| RBC Student Savings Account | 1.80% | $0 | $0 | Rbcroyalbank.com |
| TD Student Savings Account | 1.70% | $0 | $0 | Tdcanadatrust.com |
As you can see, the interest rates offered by these accounts vary, but most of them have no fees and require a minimum balance. If you're looking for a no-fee savings account, EQ Bank Savings Plus Account is a great option. However, if you're willing to keep a minimum balance, Tangerine Savings Account offers a higher interest rate.
Comparison of Fees and Minimum Balance Requirements
Here's a more detailed comparison of the fees and minimum balance requirements for these accounts:
| Account Name | Monthly Fee | Minimum Balance |
|---|---|---|
| Tangerine Savings Account | $0 | $0 |
| EQ Bank Savings Plus Account | $0 | $0 |
| President's Choice Financial Savings Account | $0 | $0 |
| RBC Student Savings Account | $0 | $0 |
| TD Student Savings Account | $0 | $0 |
As you can see, all of these accounts have no monthly fees and require no minimum balance. However, it's always a good idea to review the account terms and conditions before opening an account.
How to Earn Interest on Your Savings
To earn interest on your savings, you'll need to keep your money in a high-interest savings account for a certain amount of time. The interest rate will depend on the account you choose and the amount of money you deposit. Here's an example of how much interest you could earn on a $1,000 deposit:
- If you deposit $1,000 into a savings account with a 2.45% interest rate, you'll earn $24.50 in interest per year, assuming a $1,000 balance for the entire year.
- If you deposit $1,000 into a savings account with a 2.30% interest rate, you'll earn $23.00 in interest per year, assuming a $1,000 balance for the entire year.
- If you deposit $1,000 into a savings account with a 2.20% interest rate, you'll earn $22.00 in interest per year, assuming a $1,000 balance for the entire year.
Frequently Asked Questions
How much should I save each month in Canada?
As a Canadian student, it's a good idea to save at least 10% to 20% of your income each month. This will help you build an emergency fund and achieve your long-term financial goals. Consider setting up automatic transfers from your chequing account to your savings account to make saving easier and less prone to being neglected.
Can I open a savings account in Canada if I'm under 18?
Yes, you can open a savings account in Canada if you're under 18. Many banks and credit unions offer special savings accounts for minors, which may come with lower fees and higher interest rates. You'll need to provide parental consent and identification to open an account.
What's the best way to manage my finances as a Canadian student?
The best way to manage your finances as a Canadian student is to set up a budget, track your expenses, and prioritize saving. Consider using a budgeting app like Mint or You Need a Budget to help you stay on top of your finances. You should also aim to save at least 10% to 20% of your income each month and consider opening a high-interest savings account to earn interest on your money.
Summary
In conclusion, saving money as a Canadian student can be challenging, but it's essential to securing your financial future. By opening a high-interest savings account, you can earn interest on your money, stay organized, and avoid unnecessary fees. We've highlighted the top savings accounts for Canadian students, including Tangerine Savings Account, EQ Bank Savings Plus Account, and President's Choice Financial Savings Account. By following these tips and recommendations, you can start building a strong financial foundation and achieving your long-term financial goals.
Found This Useful?
Get more guides like this every week — free to your inbox.
Join the Free Newsletter
