Financial Consumer Agency of Canada

www.fcac-acfc.gc.ca

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2. > For Consumers
3. > Banking
4. > Personal Accounts
5. > Savings accounts

Savings Accounts

A savings account is an account that pays interest.

A savings account is one way to help you set money aside for an emergency, to save up for a large purchase or to build funds to invest for your education or career.

FCAC’s savings account selector tool can help you find the best savings account for you.

When you compare savings accounts, check how often compound interest is paid. Compound interest is interest that is paid on interest you have earned in previous periods, as well as the money you originally deposited. Most savings accounts compound interest monthly, but some accounts compound interest daily. Accounts that compound interest daily earn more interest faster than accounts that compound interest monthly.

Savings accounts are generally not practical for day-to-day banking because most financial institutions limit the number of transactions they allow on a savings account, or may charge relatively high transaction fees. That is why most consumers who open a savings account also have a chequing account.

Setting up automatic transfers from your chequing account to your savings account each time your paycheque is deposited can be a great way to get into the saving habit and to make achieving your financial goals part of your budget.

Check out FCAC's savings and investment section to learn about other saving and investing options.

• Chequing accounts
  Managing your day-to-day banking transactions
• Low-cost accounts
  Save money on monthly banking fees
• Joint accounts
  What you should know before opening an account with someone else
• Debit cards
  How to save on fees when using your debit card

Related Resources

Date Modified:

2012-07-31