Reasons to save Money

There isn't much motivation for people these days to save money when you get 0.10% for your "high-interest" savings account at the bank and then you need to keep a minimum balance on top of that to avoid fees.
CFFBank has outdone themselves again when they sent us this today. 2.20% is the promo rate for a regular savings account. And yes you can get a high-ratio mortgage with a 3 year fixed mortgage rate of 2.15% (lower than the one year GIC rate). I think if I would have seen this yesterday I would have thought this was an April Fools joke. Check out the other TFSA, RSP and GIC rates and compare them on the Financial Post with other FIs!
If you had no fees would it be worth your while to start a savings account with a monthly contribution for as little as $25 a month? Ideas to use an automated savings plan:

• start a savings account for your kids and put money away for them
• start a savings account for your teenagers and encourage them to put some money away from their paycheques.
• start a savings account for your kids and put their allowance in there monthly and start teaching them to bank
• add up all your annual expenses (property taxes, house-/car insurance, holiday money etc), divide them by 12 and make an automated savings plan for this into your own savings.
• refinance your home to a lower interest rate and put the payment savings into an automated savings plan into an RSP, TFSA, GIC or savings and increase your liquid networth.
• so many more strategies that can be created

To save money has become a bit of a lost art because there really isn't much initiative when interest rates are low. Read more...