Comments on: When Not to Use a High Interest Savings Account http://blog.canadian-dream-free-at-45.com/2008/08/14/when-not-to-use-a-high-interest-savings-account/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Pam http://blog.canadian-dream-free-at-45.com/2008/08/14/when-not-to-use-a-high-interest-savings-account/comment-page-1/#comment-7516 Pam Fri, 15 Aug 2008 22:39:54 +0000 http://blog.canadian-dream-free-at-45.com/?p=495#comment-7516 I had no idea that high-interest savings accounts were taxable. I had no idea that high-interest savings accounts were taxable.

]]> By: moneygardener http://blog.canadian-dream-free-at-45.com/2008/08/14/when-not-to-use-a-high-interest-savings-account/comment-page-1/#comment-7449 moneygardener Thu, 14 Aug 2008 18:25:00 +0000 http://blog.canadian-dream-free-at-45.com/?p=495#comment-7449 I agree with the post. Good point by M.James though. These use of these accounts amoung Canadians will always be high though because they are simple, common, and perceived to be safe. I agree with the post. Good point by M.James though.

These use of these accounts amoung Canadians will always be high though because they are simple, common, and perceived to be safe.

]]> By: dc http://blog.canadian-dream-free-at-45.com/2008/08/14/when-not-to-use-a-high-interest-savings-account/comment-page-1/#comment-7448 dc Thu, 14 Aug 2008 17:43:58 +0000 http://blog.canadian-dream-free-at-45.com/?p=495#comment-7448 I agree with the concept and actually this in practice with my finances. The only problem that I see is with respect to your comment "If you need the money down the road you merely use your HELOC to take out the money". It is also easy to see the available room on your HELOC as "available money" in that is is very easily accessible. You are blending savings with debt and although it all shakes out in your net worth, it takes discipline to view a reduced liability as savings. I agree with the concept and actually this in practice with my finances.

The only problem that I see is with respect to your comment “If you need the money down the road you merely use your HELOC to take out the money”.

It is also easy to see the available room on your HELOC as “available money” in that is is very easily accessible. You are blending savings with debt and although it all shakes out in your net worth, it takes discipline to view a reduced liability as savings.

]]> By: ThickenMyWallet http://blog.canadian-dream-free-at-45.com/2008/08/14/when-not-to-use-a-high-interest-savings-account/comment-page-1/#comment-7444 ThickenMyWallet Thu, 14 Aug 2008 15:48:17 +0000 http://blog.canadian-dream-free-at-45.com/?p=495#comment-7444 I agree with Mike about not allocating money in the extremes. Yes, high-interest savings accounts are not as ideal as most think it is but you do need to have cash around because in an emergency if you draw down on your HOLEC for short-term cash, your cost of cash is higher than using up your reserves first. I agree with Mike about not allocating money in the extremes. Yes, high-interest savings accounts are not as ideal as most think it is but you do need to have cash around because in an emergency if you draw down on your HOLEC for short-term cash, your cost of cash is higher than using up your reserves first.

]]> By: Michael James http://blog.canadian-dream-free-at-45.com/2008/08/14/when-not-to-use-a-high-interest-savings-account/comment-page-1/#comment-7443 Michael James Thu, 14 Aug 2008 14:44:42 +0000 http://blog.canadian-dream-free-at-45.com/?p=495#comment-7443 A potential problem with putting cash savings against debt is that if you lose your job, banks may not lend you any money. So, this extra money you put against debt becomes inaccessible. In general I like the idea of paying down debt, but it does make sense to have a modest amount of cash available for emergencies, particularly for single-income families. A potential problem with putting cash savings against debt is that if you lose your job, banks may not lend you any money. So, this extra money you put against debt becomes inaccessible. In general I like the idea of paying down debt, but it does make sense to have a modest amount of cash available for emergencies, particularly for single-income families.

]]> By: Jerry Hung http://blog.canadian-dream-free-at-45.com/2008/08/14/when-not-to-use-a-high-interest-savings-account/comment-page-1/#comment-7439 Jerry Hung Thu, 14 Aug 2008 13:44:55 +0000 http://blog.canadian-dream-free-at-45.com/?p=495#comment-7439 I agree, pay ANY debt before you invest Personally, I'd pay down mortgage before RRSP as well I wish TFSA could come sooner... ICICI is paying 3.4% for HSA (and a bit higher for GIC's), but those will be taxed 100% interest Or if you like risk, go for high yield dividend stock or income trust. Taxed at 100% still though For example, Yellow Page (YLO) is about 10% yield, but be warned: this is not a stock tip, and there is a chance stock will fall and you lose more than your interest income!!! I agree, pay ANY debt before you invest
Personally, I’d pay down mortgage before RRSP as well

I wish TFSA could come sooner…

ICICI is paying 3.4% for HSA (and a bit higher for GIC’s), but those will be taxed 100% interest

Or if you like risk, go for high yield dividend stock or income trust. Taxed at 100% still though

For example, Yellow Page (YLO) is about 10% yield, but be warned: this is not a stock tip, and there is a chance stock will fall and you lose more than your interest income!!!

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