what to do with my savings?

I have $11,000 sitting in a regular savings account barely accumulating anything. What could I do with it to turn it into more? I'd rather not put it on something that I could lose money instead (stocks?). My bank has a high interest savings account, which has 0.750% interest (I don't really understand how it's calculated*). What are some other, options?

*The interest rate is an annual interest rate. It is a simple interest calculation. Interest is calculated based on the daily closing balance and is paid monthly.

Go with a high yield savings account. I've listed a few that I know of - you'll have to see which ones have the best rate right now. My experience has been that Shorebank tends to be the highest, but they all vary (esp. lately).

Also, look into CDs - right now they are probably low, but something to keep an eye on, and when you see a good one, put in however much you won't need for a year (esp. if you think rates are going down, not up).

Shorebank

ING Direct

HSBC

CitiBank

Thanks, will look.

p.s I'm in Canada if that affects anyone's answers

I'll hold on to it for you.

I'm from Canada as well, and my eccentric estranged relatives all bought me bonds when I was little. They were $100 and each one accumulated $40-50 over 10 years. That was lovely, because I unexpectedly found them in a box, but I'm financially ignorant so I have no clue if that's a decent profit.

Good luck making your decision : )

How long before you plan on spending this money?

I don't plan on spending it...well I mean one day it will be spent on something of course, but I'm confident it could be untouched for a long time. I am not saving for anything in particular, I just like the idea that I can make money off of it while it's sitting around :)

Looking around these websites makes me feel like I have small potatoes though lol.

Use the new Tax Free savings account.  You can deposit up to 5000 a year and don't pay any taxes on the interest you earn.  Its different than an RSP.

Here's a link to more info. 

http://www.taxfreesavingscanada.ca/

You can then work with your bank to figure out what type of savings you want it to be ie regular savings, mutual funds etc.

Original Post by amethystgirl:

Go with a high yield savings account. I've listed a few that I know of - you'll have to see which ones have the best rate right now. My experience has been that Shorebank tends to be the highest, but they all vary (esp. lately).

Also, look into CDs - right now they are probably low, but something to keep an eye on, and when you see a good one, put in however much you won't need for a year (esp. if you think rates are going down, not up).

Shorebank

ING Direct

HSBC

CitiBank

 

ING is awesome.  i've had an account with them for almost four years, and it's all true!  no service charges, no fees, high interest, no penalties for withdrawal from longer-term accounts.  the only inconvenience is that when you do need the money, it takes a few days to transfer it into a regular, brick-and-mortar bank.

Original Post by vicereine:

I don't plan on spending it...well I mean one day it will be spent on something of course, but I'm confident it could be untouched for a long time.

Then stocks will probably get you the biggest return. 

Don't put it into stocks.  Yes they will give you the biggest return but also the biggest risk of loss.  For long-term investments stick to high interest savings or CDs.  This is coming from someone who works in finance and daytrades on the side, fwiw... you don't need the risk of stocks.  If one of my members had your same situation, I would have the place the funds into a CD.

So I could put $5000 into the TFSA and the rest of the money into a CD (GIC is the Canadian version I believe)? Since CDs have a higher rate than savings accounts, and if I need to I can take money out of the TFSA.

ING has 3% rate for the TFSA, which is a lot more than the other places, is there a catch I'm not seeing?

a TFSA could be a smart choice.  as could a Mutual Fund (if you go middle ground in the way of risk, there is 50% of your money that cannot possibley lose money), you can select how much will have risk and won't...

in your OP, i'm prone to assume you meant 7.5%.  not .750% 

shop around.  check out multiple banks (and let them know you're checking multiple). 

Trip to vegas!!!!!!!

no it is .750%...if it was 7.5 it would be a no brainer :P

http://www.rbcroyalbank.com/products/deposits /index.html?tab=saving_tab

I'm already going to Cuba in September, lorik :)
(and if you mean to gamble, I'm not a risk taker)

Original Post by vicereine:

So I could put $5000 into the TFSA and the rest of the money into a CD (GIC is the Canadian version I believe)? Since CDs have a higher rate than savings accounts, and if I need to I can take money out of the TFSA.

ING has 3% rate for the TFSA, which is a lot more than the other places, is there a catch I'm not seeing?

 My parents use ING and they always get rates that are above the others so that's probably correct.  You could 5k in this year and the rest in CD then next year put another 5k in if you wanted to.

Hahah it's weird to me seeing someone saying they're going to cuba. I want to go to Cuba! Dammit USA!

If you want to save it and have no plans to use it - lock it in for a year into a high rate Gov. Of Canada bond.  You can get some really good rates right now if you lock it in.

Go into your local bank (wherever you hold the money) and ask what the best rate they can get you to lock it in for a year.  You can lock it in for longer if you want but you never know if you might want it in a year to buy property.

Bond or CD will give you low but relatively risk-free yield.  Stocks are more of a long-term investment.  And you wouldn't buy a single stock, you'd be best off buying an index fund ... much more diversified and, accordingly, less risk in the long run.

Since you're in Canada, I won't give my standard "buy gold to hedge against runaway inflation" lecture.  ;-)

Bonds sounded good until I read about them, right now I don't want to do anything that I could lose money on.

Can you put more money into a GIC/CD? Or do you have to keep starting separate ones?

I am trying to figure out which route or combinations will produce the most. Achieva Financial and Outlook Financial have 3.8% interest on GICs (ING has 3%), I could put 5k into the TFSA GIC, and then the rest into a regular GIC. That's why I'm wondering if I can keep adding 5k a year on the TFSA GIC (and if I have more, add it to the other one). That would make the most money, the downside would be I don't have access to the money for 5 years...well I guess that could also be a plus (no option to spend it) :P

GIC.  Ask your bank for best rate.  Lock it in for longer = better rate.