Timeline for Should I put a small amount of savings in a high interest savings account?
Current License: CC BY-SA 3.0
6 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Apr 30, 2015 at 18:01 | comment | added | Spehro 'speff' Pefhany | You will have to pay income tax on the interest income (you'll get a T5 and it will be reported to the CRA by the financial institution). You may have associated expenses that are paid with after-tax money. It doesn't make much difference if your income is very low, but if you're making much money (especially in Canada) you're left with maybe half the money after paying taxes. | |
| Apr 30, 2015 at 16:29 | comment | added | user2738698 | @SpehroPefhany So... I just have to make sure at the end of each year, I'm profiting and not losing? I'm not sure what you mean by the after-tax difference. | |
| Apr 30, 2015 at 15:19 | comment | added | Spehro 'speff' Pefhany | The sole reason to not do that is if the cost of doing this (gas, whatever) does not generate more than the after-tax difference. If you're in a 35% bracket then the after-tax difference is $26. per year. That will buy 16 medium coffees at Tim Hortons, so it's worth hanging onto if there are no other real costs. | |
| Apr 30, 2015 at 15:02 | vote | accept | user2738698 | ||
| Apr 30, 2015 at 15:02 | comment | added | user2738698 | +1 "Waiting gains you nothing" is what I was looking for; thanks! | |
| Apr 30, 2015 at 14:52 | history | answered | Raze | CC BY-SA 3.0 |