Squeezing out the most out of an investment can be tough to do without spending a lot of energy. Not only do we have plenty of options to choose from, but fluctuating rates can also be hard to follow. Another element that can tricky is the fact that certain institutions advertise competitive rates without making it clear how long these will be available for.
This is something to be aware of all year round, but especially during RRSP season. During this period of time several financial institutions tend to advertise appealing rates that are set to change (for a lower one) only a couple of months after the start of the promotion. In other words, to maximize your investment make sure to read the fine print.
The most appealing rates for investments that don’t require you to lock your money down for a specific period of time (usually 2 to 5 year terms) are often offered by virtual banks such as Achieva Financial, Outlook Financial or AcceleRate Financial. I personally have some money in a RRSP account at AcceleRate, which I was a tad disappointed to see go down to a 1.9% rate this year. This being said, it is still one of the most advantageous rates available for this type of investment (no fixed term). Have a look at this list to see all the Savings Account rates in Canada. It will give you a good idea of what’s available to you.
If you’re interested in potentially investing more of your time in the management of your placements, I recommend having a look at this Beginner’s guide to self-directed RRSPs that we published a little while back. With this method you could yield much higher profits, but it is a whole different ball game, as this approach is riskier and requires more of your time.