MY RECOMMENDATIONS FOR CANADIAN BANK ACCOUNTS – WHERE I KEEP MY MONEY (2024)

MY RECOMMENDATIONS FOR CANADIAN BANK ACCOUNTS – WHERE I KEEP MY MONEY (1)

It can be overwhelming figuring out where to best store our money due to the sheer amount of options available to us now – competing banks with each of their incentives, credit unions, online only institutions, cryptocurrencies!

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I have been asked what my recommendations are for Canadian bank accounts to keep your money in.

To be honest, I don’t know the answer to the “best bank account” out there. But! I CAN share with you which ones I use and how I use them – these would be my “recommendations”.

I’ll break these down intodaily banking, short-term and long-term goalsfor simplicity’s sake. It helps that you make financial goals with timelines because this helps you determine where to best keep your money.

Daily Banking

For everyday banking, I use two banks – one for personal spending and another for real estate properties.

I useSimplii Financial*for personal spending because they offer no-fee checking accounts with unlimited transactions.I’m able to send unlimited e-transfers for free as well. With Simplii, I can use CIBC ATMs to withdraw and deposit cash…but who really uses cash these days?

Simplii is now offering YOU a $50 sign-up bonus if you use my affiliate link. The caveat? You must deposit at least $100 in your new Simplii account within 6 months of opening it and maintain that $100 in the account for at least 60 days.Here’s the link to sign-up*.

Tangerineis what I use to manage my rental properties. I have a dedicated checking account for each rental unit I manage. They are free to use so my multiple accounts don’t cost me anything. But more than saving money, it makes my bookkeeping so much easier for tax time when I can clearly track income and expenses separately for each rental unit! With Tangerine, you can use Scotiabank ATMs if you need cash but most transactions can be done online.

If you want to open a Tangerine account, you can use myTangerine Key 44760223S1*to sign up as a new customer and earn yourself a $50 bonus! You do have to have at least $250 in the account within the first 60 days to get the bonus.Seriously, would you say no to free money?

** Disclaimer: Simplii and Tangerine offer no-fee bank accounts but there are charges for other fees such as NSF fees, stop transfer fees, etc. Please read the fine print on their respective websites. **

This one is an easy one to answer. There’s really only one product I use for any short-term goals – anything where I would need to use the money within 1 to 3 years.

That’s theEQ Bank Plus Savings Account*!Currently, they are offering1.50%** interest on every dollar. This is a ‘plain old’ savings account which is what you want if you need the money in less than 3 years. You don’t want to invest and put that cash at risk in case the markets are awful when you need your money. The EQ Bank Plus Savings Account gives you some decent growth for parking your cash with them.In comparison, Simplii and Tangerine are offering 0.10% annually on their savings account. (as of February 21, 2021)

**Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.**

You can open up to 5 savings accounts with EQ Bank. Because I like compartmentalizing my goals, I set up a separate account for the following with automatic fund transfers from my everyday banking account:

  1. Car Repairs & Emergency Fund
  2. Buddy’s Fund (my French bulldog ‘fur-baby’)
  3. Travel Fund
  4. House Down Payment Fund

If you set them up one time and automate the fund transfers on a regular basis, you don’t even need to do anything anymore. Accessing the cash is easy when you need it and there are no fees to use these accounts.

Supercharge your savings or debt repayment goal

I use another product to save even more money effortlessly. You can use the money you save here to add to your short-term goals or come up with an extra payment to put towards debt. That product is Moka!

Moka*(the new and improved Mylo)is an automated investing app that rounds up your daily purchases and invests the spare change. Or in my case, I’m just saving that spare change instead of investing it. I’m saving for something in the near future… but I can’t share with you what that is quite yet.

The Moka interface is sleek and easy to use. I set-up my goal in Moka about a year ago and nowI have over $550 saved in itjust from spending money like I normally do.

Long-Term Savings

Retirement (or Semi-Retirement)

This is my only “long term” goal right now. And honestly, it is a moving target. As of today, the only thing I’m really sure of is that I won’t need this retirement/semi-retirement money for at least another 10 to 15 years.

With that kind of timeline, this is where I can play with risk a bit more. This money is currently invested in ETFs (exchange traded funds) in moderate to aggressive portfolios.I use robo-advisors to buy these investments.

If that language is hard to digest, no worries! I still feel that way today whenever I encounter weird financial terms. Basically, an ETF is a basket of securities – investments that can include lower risk types like bonds and higher risk types like stocks. Instead of buying individual stocks and bonds, you can buy a whole portfolio of them in an ETF. The benefits include simplicity (buying one ETF instead of several individual stocks and bonds) and diversification (you do not have all your money invested in just one stock for example). There are more advantages like cheaper fees compared to mutual funds and being able to buy them in your RRSPs and TFSAs for some tax advantages… but that’s information for another post.

The two robo-advisors I use are:

  1. Wealthsimple*– Balanced Portfolio (50% equities, 50% fixed income)
  2. JustWealth*– Aggressive Portfolio (99.5% stocks, 0.5% cash)

Currently, I earn between 7-10% ROI with the above allocations when I last checked (February, 2021).If you can’t tell by now, I’m a “set-it and forget it” type investor and avoid exciting stuff like day trading and cryptocurrencies(for the sole reason that I don’t have the mental bandwidth to handle it!). I’m okay with getting rich slow when it comes to my passive investments.

(Real estate is a whole different ball-game for me though so that’s where I get my excitement from!)

Group RRSP– I also have an RRSP through work. I was contributing because my employer was matching up to 2% of contributions. The money here is currently invested in an aggressive growth portfolio (100% equities) made up of mutual funds.My ROI is about 7% when I last checked (January, 2021).

(Disclaimer: The above investment returns are for illustration purposes only. These are not guaranteed returns if you invest with the companies I mentioned above.)

(MORE) DISCLAIMERS:
*THE ABOVE LINKS ARE AFFILIATE LINKS WHICH MEANS THAT IF YOU CLICK THROUGH THE LINK AND SIGN-UP, I RECEIVE A SMALL REFERRAL BONUS AT NO COST TO YOU.
IF YOU USE MY WEALTHSIMPLE LINK, YOU WILL RECEIVE THE FIRST $10,000 OF YOUR MONEY YOU INVEST WITH THEM MANAGED FOR FREE FOR THE FIRST 12 MONTHS. IF YOU USE MY JUSTWEALTH LINK, YOU WILL RECEIVE $50 FOR OPENING A NEW ACCOUNT WITH THEM. PLEASE CHECK THEIR INDIVIDUAL TERMS AND CONDITIONS TO MAKE SURE YOU QUALIFY FOR THE BONUSES.
IF YOU DON’T WANT TO USE MY AFFILIATE LINKS, THAT’S OKAY TOO. JUST HEAD DIRECTLY TO THEIR WEBSITE TO SIGN-UP – KEEP IN MIND THOUGH THAT YOU MAY NOT RECEIVE THE SIGN-UP BONUSES OFFERED THROUGH MY AFFILIATE LINKS IF YOU DO.

As of now, this mix of accounts I’m using works really well with my goals and my current financial situation. I’m sure as this changes, some of these accounts may or may not change.

I wrote this because I get asked a lot what’s the best bank account to keep your money in. While I can’t answer that specific question for you, I do share what I use as ‘recommendations’. The companies I mentioned above are companies I personally use and have had experience with. They work well for my needs.

The other reason is to hopefully help you see a different way to organize finances –by personal goals and timelines.Often times we get caught up on who gives us the most bang for our buck, or which investments will make us the most money as fast as possible(Read: Run away!!).

Other times, we don’t really think twice about where our money is parked. Maybe you’ve just done what the nice “financial advisor” at your bank told you to do – probably to put savings in a mutual fund offered by that bank. While this isn’t a terrible decision, I’m here to show you there are other options that might be more beneficial to you, for YOUR needs.And that even this process, of picking out where to best park our money, is an important part of our overall financial planning.

This may be an upside down approach than what most people are used to, but I think that’s just how it needs to be.YOUR ‘WHY’ FIRST THEN YOUR ‘HOW’ AFTER.

Where do YOU keep your money? Do you have products you would recommend? Share your thoughts in the comments section below!

MY RECOMMENDATIONS FOR CANADIAN BANK ACCOUNTS – WHERE I KEEP MY MONEY (2024)

FAQs

How much money can you deposit without getting flagged in Canada? ›

Banks must report cash deposits totaling $10,000 or more

But the deposit will be reported if you're depositing a large chunk of cash totaling over $10,000. When banks receive cash deposits of more than $10,000, they're required to report it by electronically filing a Currency Transaction Report (CTR).

Should I keep all my money in one bank in Canada? ›

In particular, having more than one bank account can provide you with extra protection for your funds if you have more than the $100,000 CDIC insurance limit. Splitting your funds between banks can also give you access to extra features and benefits that you don't have at your current financial institution.

How much money is safe in a Canadian bank account? ›

CDIC insures eligible deposits separately up to $100,000. Deposit insurance covers the following types of deposits: savings and chequing accounts. Guaranteed Investment Certificates (GICs) and other term deposits.

Is it safe to keep money in a checking account in Canada? ›

Know your money is safe.

Your account is CDIC-insured for up to $100,000 and protected against unauthorized transactions with our Security Guarantee.

What is the $3000 rule? ›

Rule. The requirement that financial institutions verify and record the identity of each cash purchaser of money orders and bank, cashier's, and traveler's checks in excess of $3,000.

Can a bank ask where you got money in Canada? ›

Can a bank ask where you got money? No. It is not their job to ask you for your source of funds.

Is there a downside to having multiple bank accounts? ›

While there are some clear advantages to having multiple bank accounts, there are also some potential drawbacks to consider: Minimum balance requirements: Some banks and credit unions require that you keep a certain amount in your account to keep the account open or to avoid a monthly fee.

Can Canadian banks take your savings? ›

Absent a court order (e.g., garnishee), a bank's ability to automatically withdraw money from your accounts is limited to debts owing to that institution and debts owing to Canada Revenue Agency.

What is the best bank to deal with in Canada? ›

The 4 Best Banks in Canada For 2024
  • Royal Bank of Canada (RBC) – Best for Businesses. ...
  • BMO – Best for Newcomers. ...
  • KOHO: Best for People with Low Credit Scores. ...
  • EQ Bank – Best for High-Yield Savings.
Apr 5, 2024

What Canadian bank is the safest? ›

Toronto-Dominion Bank (TSX:TD) is the “safest” Canadian bank going by capitalization. Today, it has a 16.2% common equity tier-one (CET1) ratio. The CET1 ratio is cash plus equity divided by all risk-weighted assets. It means that TD's high-quality, low-risk assets are high as a percentage of total assets.

Can I keep my Canadian bank account if I move abroad? ›

Note: You can keep a Canadian bank account and it can be really useful while living in the U.S. or overseas to have one! But change your address on this account to your new non-Canadian address. Do not change it to a family member's address in Canada, even though it may seem convenient to do so.

Can I put large amount of cash in my bank account in Canada? ›

Depositing cash

You can deposit cash to your chequing or savings account in Canada. However, some banks limit how much cash you can deposit, so be sure to contact your bank and ask about any restrictions. Keep in mind that when you arrive in Canada, you have to declare any amount of $10,000 CA or more.

Can banks seize your money if the economy fails? ›

It indicates an expandable section or menu, or sometimes previous / next navigation options. Your money is safe in a bank, even during an economic decline like a recession. Up to $250,000 per depositor, per account ownership category, is protected by the FDIC or NCUA at a federally insured financial institution.

Where is the safest place to put your money in Canada? ›

Where is the safest place to keep money in Canada? One of the safest places to keep your money is in a bank account at a reputable financial institution, which provides deposit insurance for up to $100,000 or more through the Canada Deposit Insurance Corporation (CDIC).

Are Canadian banks safer than US banks? ›

The only difference is that the Canadian banks have a larger share of loans. This is one of the main factors that makes them safer than American banks, even the larger ones. The Canadian financial system and the American financial system aren't really that different.

Is it illegal to have more than 10000 in cash in Canada? ›

Anything else would be counterfeit and as such, illegal. There is no restriction to how much of that you can possess or carry. There is however, a legal limit as $10,000 in cash when flying internationally.

Is depositing $2000 in cash suspicious? ›

As long as the source of your funds is legitimate and you can provide a clear and reasonable explanation for the cash deposit, there is no legal restriction on depositing any sum, no matter how large. So, there is no need to overly worry about how much cash you can deposit in a bank in one day.

How often can I deposit $10,000 cash without being flagged? ›

The IRS requires Form 8300 to be filed if more than $10,000 in cash is received from the same payer or agent in any of the following ways: In one lump sum. In two or more related payments within 24 hours. As part of a single transaction or two or more related transactions within 12 months.

Will I get flagged for depositing $3,000? ›

Key Takeaways

Banks must report cash deposits of $10,000 or more. Don't think that breaking up your money into smaller deposits will allow you to skirt reporting requirements.

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