The best way to save money depends on what you’re saving for because it will dictate how you save.
If you’re saving for retirement, in addition to any work GRSP you might have, you should open an RRSP or TFSA or both, since they offer amazing tax benefits that will either save you money right now, or down the road when you retire. How far away your retirement is, and how strong a stomach you have for short-term volatility will dictate how much of your savings should be invested in equities, AKA stocks, which can have wild up and down swings, versus low-risk government bonds, which are more stable, but offer less potential for growth.
If you’re saving for something that’s coming up in the near future, like an epic Africa safari, a big wedding, or a down payment on an apartment, you’re going to want to park that money somewhere 100% risk-free that allows you to withdraw it at any time. For any purchase you’ll be making in the next three years, consider Wealthsimple Smart Savings, which is like a bank savings account — only way better. Like a bank account, the CDIC insures any deposit up to $100,000. Unlike a bank account, it offers real interest — currently 1.7% net interest, with no account minimum, no transaction fees, and no hidden service or management costs. Plus, any amount you put in Wealthsimple Smart Savings will count towards the $100,000 account balance required to achieve Wealthsimple Black status, which features reduced management fees on investment accounts as well as cushy perks like free entry into 1,000 airport lounges worldwide. If you’re saving for retirement, start here. If you’re going to need those savings in three or fewer years, starting here is your best bet.