What High Interest Savings Account Actually is?

by | Jun 3, 2022

If you own a business in Mississauga, you have a lot to do. But how do you know where your money is going? 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.

So, if you want guidance and clearance for better understanding, call Yogi & Associates! 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.

1. What High Interest Savings Account Actually is?

High interest savings account offers a higher interest rate than standard savings accounts. Many banks, credit unions, and other financial institutions provide HISAs. It allows you to put money aside safely 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 a High Interest Savings Account??

A high interest saving account functions similarly to 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 Savings Account Tax-Free?

If you don’t want your deposit to be taxed, a TFSA is a good choice. You will can invest in it even if it does not earn much interest. The Canada Revenue Agency will still tax any savings you make from the 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 Savings Account:

Pros Cons
Interest rates are high. The top HISAs are available online, limiting deposit and withdrawal methods.
Low fees compared to regular savings accounts Some of the transactions come with high fees
More flexible and more accessible to obtain than invested funds Funds are less flexible than a bank account

6. How To Choose The Best High Interest Savings Account?

You can choose the best high interest savings account in Canada by taking care of these things:

  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 you want to open an account.
  4. Make sure the bank offers reasonable interest rates. Because some banks give you good interest-only for a few months. But after some time, the interest rates drop.

7. How to Open High Interest Savings Account?

  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!

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 financial services, from business planning to corporate tax preparation. We also offer bookkeeping for individuals or companies. So, don’t wait! contact Yogi & Associates.

Get in touch with Yogi & Associates!