Simple Savings Calculator for Canadians

This Page's Content Was Last Updated: January 04, 2023
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Inputs
Current Savings
$
Contributions
Time Duration
Annual Rate of Return
%
Your Savings Goal
$
Compounding Frequency
Results
Total Invested
$24,400
Total Interest Earned
$4,552
Total Savings
$28,952

Savings goal not met. You will fall short of your savings goal by $21,048.

YearContributionEstimated InterestEnd BalanceCumulative InterestPrincipal
1$2,400$451.91$12851.91$451.91$12,400
2$2,400$568.1$15820.01$1,020.01$14,800
3$2,400$689.02$18909.03$1,709.03$17,200
4$2,400$814.88$22123.91$2,523.91$19,600
5$2,400$945.85$25469.76$3,469.76$22,000
6$2,400$1,082.17$28951.93$4,551.93$24,400
Best 5-Year Fixed Mortgage Rates in Canada CanadaLeaf
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BMOBMO
5.14%
TDTD
5.44%
CIBCCIBC
5.49%
RBCRBC
5.69%
ScotiabankScotiabank
6.34%
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About this Calculator:

This savings interest calculator uses your current savings and intended monthly contributions to project the value of your savings over a specified length of time, and compares it with your savings goal.

  • Current Savings: This is the starting balance that you already have in your savings. If you don’t have any savings, your input should be 0.
  • Monthly Contributions: This is the additional amount that you intend to contribute to the savings every month.
  • Time Duration: The time period over which the savings will grow without making any withdrawals.
  • Annual Rate of Return: Rate of interest you expect to earn on your savings.
  • Savings Goal: What you intend to save over the specified time period.

Many Canadians are faced with the question of when to start saving in life. The simple answer is as early as possible. Even if you have $10 left at the end of the month, you should start saving it, as that can multiply quickly and help you build wealth over time.

You can begin saving with a registered savings account, such as a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP), which could also give you tax benefits. There are several types of savings and investments that you could consider, such as High-Interest Savings Accounts (HISAs), Guaranteed Investment Certificates (GICs), stocks, bonds, Exchange-Traded Funds (ETFs) and more.

Types of Savings and Investments in Canada

There are several ways to save and grow your money. Here’s a look at some of the common types of savings and investments that you can consider.

1. High-Interest Savings Accounts (HISAs)

High-Interest savings accounts offer a higher interest rate than traditional chequing accounts and savings accounts. Depositing your money in a HISA is considered a safe way to grow your money. The interest rates depend on the Bank of Canada Rate and can change without prior notice.

Usually, the interest on a HISA account is calculated by multiplying the daily interest rate with the average daily balance and is deposited into your account at the end of every month. Before investing in a HISA, you should consider not just the interest rate but also factors such as account fees, deposit insurance, transfer fees and lock-in periods.

The accounts offering the highest interest rates in Canada are:

Savings Accounts
Interest Rate
Saven Financial Logo
Saven Financial
High Interest Savings Account
3.75%
Renaissance Logo
Renaissance
High Interest Savings Account
3.65%
Oaken Logo
Oaken
Savings Account
3.40%
Peoples Bank Logo
Peoples Bank
e-Savings Account
3.40%
Bridgewater Bank Logo
Bridgewater Bank
Smart eSavings Account
3.25%

2. Guaranteed-Investment Certificates (GICs)

A GIC offers guaranteed returns on your investments over a particular time period. Investing in a GIC means that you are depositing your money with a bank or credit union for a fixed term such as a month, a year or five years. The interest rate varies across financial institutions and generally increases with the length of the term of the deposit. You may be penalized for withdrawing your money from a GIC before the end of the term.

GICs are considered to be low-risk investments, and are ideal for investors with a low risk appetite. You can select a GIC based on criteria such as fixed or variable interest rate, cashability and term length. Listed below are the best GIC rates available in Canada.

GIC Type
Provider6-Month1-Year3-Year5-Year
WealthONE
WealthONE
1.50%
5.28%
5.28%
5.28%
Saven Financial
Saven Financial
-
5.30%
5.05%
5.15%
Meridian
Meridian
3.75%
4.90%
5.00%
5.00%
Alterna Bank
Alterna Bank
-
5.00%
5.00%
5.00%
Outlook Financial
Outlook Financial
-
4.65%
4.80%
5.00%

3. Stock Trading

By buying a company’s stock (also referred to as share), you essentially become a partial owner of the company. Stocks of a company can be bought and sold on stock exchanges where the company is listed. Owning a certain class of a company's stock also entitles you to the profit earned by the company. Part of this profit is usually paid out as dividend.

Stocks can be traded through a trading platform. Trading in individual stocks can be risky; however, risk-averse individuals can consider investing in relatively lower-risk options such as blue-chip stocks or defensive stocks. Listed below are the five highest-dividend stocks in Canada.

NameDividend YieldPriceTotal AssetsSector
service logoDividend Growth Split Corp. - DGS.TO19.67%$5.77$796 MillionDiversified
service logoFinancial 15 Split Corp. - FTN.TO16.85%$9.03$252 MillionFinancial Services
service logoCanadian Banc Corp. - BK.TO16.56%$13.1$165 MillionFinancial Services
service logoDividend 15 Split Corp. - DFN.TO15.27%$7.8$758 MillionDiversified
service logoLife & Banc Split Corp. - LBS.TO13.45%$8.56-Financial Services

*Information Updated : June 18th, 2022

Some common kinds of company stocks that you can buy in Canada are bank stocks, oil stocks, insurance stocks and asset-management stocks.

4. Mutual Funds

Mutual funds are the most common type of investment in Canada. In this type of investment, resources from multiple investors are pooled together to buy securities such as stocks, bonds, currencies and commodities. A mutual fund groups all these assets in a single fund and is thus a great way to diversify your investments. Mutual funds are managed by professional fund managers, who manage the buying and selling of securities within the fund. Mutual funds usually require a low initial investment. They are liquid as they can be redeemed on any day at the net asset value (NAV) at the end of that trading day.

Best Performing Canadian Mutual Funds

Name1-year return3-years annualized return5-years annualized return10-years annualized returnUnderlying assetsMERLoad
Canoe Energy Alpha Fund*87%35%25%NAEnergy Equity
  • F: 1%
  • A: 2%
None
Ninepoint Energy Fund78%54%18%7.5%Energy Equity
  • A: 3.93%
  • F: 2.55%
  • ETF: 5.12%
None if held > 20 days
Fidelity Global Value Long/Short73%NANANAUnconstrained
  • F: 1.54%
  • B: 2.71%
  • F5/F8: 1.56%
  • S5: 2.73%
  • S8: 2.82%
None
Altema Diversified Equity Market Neutral*50%4.9%NANAUnconstrained
  • >2%
None
Wealhouse Lions Bay*43%29%NANAUnconstrained
  • F: >1.5%
  • A: >2%
None

*Information Updated : August 18, 2022

5. Exchange-Traded Funds (ETFs)

An ETF, like a mutual fund, is also a type of investment fund that pools the resources of multiple investors and invests in a basket of securities such as stocks, bonds and commodities. The difference is that ETFs are traded on the stock exchanges throughout the trading hours, in the same way as stocks. Similar to stocks, ETFs also have a ticker symbol, and their prices also change throughout the day.

The risk level of the assets contained in an ETF determines the risk level of the ETF. ETFs are considered to be a transparent form of investment and have low upfront costs. Listed below are the best-performing Canadian ETFs based on 5-year risk-weighted return.

Ticker SymbolBenchmark TrackedCategory/Sector
U-UNPhysical Uranium0.35%1M$290M-6.8%199%197%233%286.8%Passive/Commodity
HQU2x NASDAQ-1001.49%1.2M$190M-48%-26.2%62%154%209.57%Passive, non-financial
ZQQNasdaq 100 Equity Hedged0.39%105K$1.4B-25%-8.5%47%94%166.17%Passive, non-financial
VFVS&P 5000.09%131K$4.63B-13.9%6.1%34%73%159.3%Passive, broad index
VUNCRSP US Total Market0.16%42.8K$3.81B-15%0.9%30.6%67%146.21%Passive, broad index
XUUS&P Total Market0.07%42.4K$2.03B-14.5%2.9%31.1%67%146.21%Passive, broad index
XIUS&P/TSX 600.18%5.122M$11.7B-8.5%12.4%28.4%50%138.68%Passive, broad index
COWManulife Asset Management Global Agriculture0.72%13K$376M3.5%10.3%41.2%65%134.06%Passive/Agricultural

*Information Updated : September 19th 2022

6. Real Estate Investment Trusts (REITs)

REITs are a great option if you want to invest in real estate without having the hassle of managing a property. At the same time, investing in real estate in the traditional way takes a lot of capital; but with REITs, you can start investing in real estate for much less.

REITs are basically real estate companies that use the investors’ money to buy and manage properties and distribute the income earned from the properties back to the investors. Similar to stocks, many REITs in Canada are also traded on the Toronto Stock Exchange (TSX).One can invest in REITs through a REIT mutual fund or a REIT ETF. Listed below are the best Canadian REITs.

NameSymbol (TSX)Type
reit logoSmartcentres REITSRU.UNRetail$30$4.35 Billion6.15%
reit logoArtis REITAX.UNCommercial (excluding Residential)$11.5$1.5 Billion5.19%
reit logoRiocan REITREI.UNRetail$21.9$6.93 Billion4.39%
reit logoH&R REITHR.UNCommercial$16.17$4.68 Billion4.25%
reit logoGranite REITGRT.UNIndustrial$89$5.86 Billion3.36%

*Information Updated: August 02, 2022

Listed below are the best Canadian REIT ETFs.

Annualized Return %
NameTickerLast PriceYield (%)YTD Return (%)1 Year3 Years5 Years
iShares S&P/TSX Capped REIT Index ETFXRE$16.044.19−21.06−19.29−3.034.06
CI Canadian REIT ETFRIT$15.595.28−23.69−21.30−1.654.51
BMO Equal Weight REITs Index ETFZRE$21.345.22−20.68−19.12−0.415.88
Russell Investments Real Assets ETFRIRA$17.215.19−11.84−7.71NANA
Vanguard FTSE Canadian Capped REIT Index ETFVRE$28.364.04−24.67−22.85−3.542.6

*Information Updated: November 17, 2022

7. Bonds

Purchasing a bond essentially means loaning money to the government or a company, for which they pay you interest at a set rate. Government bonds are considered to be a risk-free form of investment; however, corporate bonds usually pay a higher interest. The return on a bond is called bond yield, which can be used to compare bonds. Bond maturities in Canada usually range from a month to 30 years.

Read more about the 10-year bond yield and 5-year bond yield of Canadian government bonds.

8. Treasury Bill (T-Bill)

T-Bills are another low-risk investment option available to Canadians. These are short-term debt securities, usually sold in denominations of $1,000. In Canada, the value of a T-Bill can range up to $1 million, and it needs to be held for a fixed term, which could range between a month to a year. T-Bills are said to be sold at a ‘discounted value’ and are subsequently redeemed at their face value. The difference between the two is what you earn.

Bottom Line

The savings and investment streams you choose can largely depend on your risk appetite and knowledge of available financial products. You should always research a product before investing in it to avoid any surprises later. If you are risk averse, you can consider investing in low-risk streams such as HISAs, GICs or government bonds. Even if you start by investing a small amount, your investments have the potential to grow exponentially as the interest compounds over time.

The calculators and content on this page are provided for general information purposes only. WOWA does not guarantee the accuracy of information shown and is not responsible for any consequences of the use of the calculator.