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Do Not Be a Passive Saver: How to Save More Money

Recently, THE Business News Network (BNN) reported that Canada Savings Bonds would no longer be offered for investments. These bonds have been in operation since 1946, but they are not competitive compared to other savings options.

While mortgage rates are hiking up quarterly, savings rates seem stagnant. An avid saver (or even one new to saving) might wonder what the options are for growing their personal wealth and putting money aside for a rainy day.

Sadly, most consumers, including the Edmonton and Northern Alberta region, are not shopping around for new opportunities. Shockingly, 45 percent do not even know the interest rate on their savings accounts. While Canadians want to save more, this lack of awareness is contributing to a heightened number of passive savers.

3 Ways to Save More and Keep More into Your Savings Account

Be proactive with your savings. A substantial savings account is needed to buffer or prevent financial distress situations from occurring; such as being able to support yourself after an illness or periods of job loss etc.

  1. Add Up the Fees – First, start by adding all the fees you pay for your savings accounts. Fees reduce your savings account returns; therefore, you want to minimize them as much as possible. Ideally, your savings account should carry no fees. Once you know how much you pay in fees, compare that to other financial institutions to see if you can save by moving your savings over.
  2. Create Separate Savings Accounts – Pooling your money into a single savings account makes it hard to track your goals. Also, you cannot diversify. If you have a goal, create a savings account for that purpose only. Some banks allow you to open more than one savings account.
  3. Know Your Interest Rate and Shop Around – Banks are competitive when it comes to interest rates. Find out your current interest rate before you decide to shop around. Be aware, however, that some banks offer higher interest rates to those with higher bank account balances. Ask about the minimum balance to unlock that higher savings return.

When Debts Override Your Savings, Contact an Edmonton Licensed Insolvency Trustee as Your Regional Contact for Professional Advice

For those who are living paycheck-to-paycheck, putting a few dollars away may be next to impossible. If debts are consuming your free cash, it might be time to consider getting professional debt solutions.

For advice on dealing with your debts, schedule a free initial consultation with a Licensed Insolvency Trustee at A.C. Waring & Associates Inc. in Edmonton. Call our Edmonton office at 780-424-9944 or our toll-free 1-800-463-3328 with your questions and concerns regarding personal or business debt management, consumer proposals, bankruptcy, debt consolidation and more.