High-Interest Savings Account: Free Guide

by | Jun 3, 2022

As a business owner, you have a lot to do. But how do you know where your money is going? Do you know how much you are spending? If so, you are doing great! But, if you don’t know how much profit your bookkeeping brings and how much interest you put away with extra money. Getting a high-interest savings account is the answer! You can save thousands of dollars by setting your books to manage your interest.

High-interest savings account is a great way to save towards your future goals. The best part of all this is that you can calculate and save more money by having your books in order at the same time.

So, if you want guidance and clearance for better understanding, CALL YOGI & ASSCOCIATES! Let us do the work for you by setting your books to manage your interest. Our bookkeeping and corporate tax services help you to manage your accounts. We can help keep you on track with the appropriate bookkeeping. This way you can set your interest and calculate accurate corporate tax. We specialize in providing these services for individuals, sole proprietorships and registered businesses in Mississauga.

1. What High-Interest Saving Account Actually is?

High-interest savings account offers a higher interest rate than standard savings accounts. A wide range of banks, credit unions, and other financial institutions offer HISAs. It allows you to put money aside safe while earning a modest return without losing access to it at any moment.

“Money looks better in the bank account than on your feet.” — Sophia Amoruso

2. What is the Function of High-Interest Saving Account??

A high-interest saving account functions in the same way as any other savings account. When you deposit funds into a bank, those funds may be given to other customers. You can retrieve your money at any time. The bank pays you a specific amount of interest for keeping your money in the account.

“It is never too early to encourage long-term savings.” — Ron Lewis

3. Is A High-Interest Saving Account Tax-Free?

If you don’t want your deposit to be taxed, a TFSA is a good choice. You will be able to invest with it even if it does not earn much interest. The Canada Revenue Agency will still tax any type of savings you earn from the account.
high-interest savings account

4. What Kind of Transactions are Possible with High-Interest Savings Accounts?

You can do the following with a high-interest savings account:

  • Investing (cash and cheques)
  • Payments for goods and services only once
  • Paying bills only once
  • Pre-authorized payments.
  • You can also create money transfers via email.

5. Pros And Cons Of High-Interest Saving Accounts:

Pros Cons
Interest rates that are high. The top HISA’s are available online, which limits the methods of deposit and withdrawal.
Low fees compared to regular saving accounts Some of the transactions come with high fees
More flexible and easier to obtain than invested funds Funds are less flexible than a bank account

6. How To Choose The Best High-Interest Saving Account?

  1. You must know what initial deposit you have to submit before opening your account.
  2. Make sure you choose a reputable bank or check the reviews of the bank before opening an account.
  3. You must have your financial goals like why do you want to open an account.
  4. Make sure the bank offers good interest rates. Because some banks give you a good interest-only for a few months. But after some time the interest rates drop.

7. How to Open High-Interest Saving Accounts?

  1. Give your full name, email address, and date of birth in the personal information required.
  2. Mention your identity and SIN
  3. Write your email id if you want to open an account online.

The Bottom Line!

A savings account is not for the wealthy or those with a large sum of money. Regular savers can accumulate a significant amount over time. If you don’t already have one, we recommend having one with a high interest rate so you can save more money faster. After all, saving is an action that can help you achieve your financial goals.

So, whether you’re looking to save money in Mississauga or earn interest on your money, a high-interest savings account can be the way to go. We offer various kinds of financial services, ranging from business planning to corporate tax preparation and bookkeeping for individuals or businesses. We offer short and fixed term savings accounts that can help you reach your goals. Our accountants at Yogi & Associates will help you calculate corporate tax. We will also make sure your savings account offers the kind of interest rate that makes a difference in your life. Don’t wait! Contact Yogi & Associates today!

Get in touch with Yogi & Associates!