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As a fourth-year college student, I’m still relatively new to managing my own finances. At first, just opening a bank account – or multiple, in my case – was enough of an accomplishment. I didn’t really think much about where my money was going or what it was doing as long as I’d put it in a bank account. After a few years of experience, speaking with others, and reading up on personal finance, I noticed a few mistakes that I’d been making, and that are likely common mistakes for first-time savers!

1. Opening accounts without having a plan

At one point, I became fascinated with banking products. Every time I learned about a new account, a promotional offer, a sign-up bonus, a new feature, or even the look of a card (yes, I’ll admit this), I found myself thinking, “maybe I should open that too”. Eventually I understood why people joke about collecting bank accounts like Pokémon cards. The problem wasn’t having multiple accounts. The problem was that I didn’t always have a reason for opening them. People naturally want to optimize everything. Better rates, better rewards, better features.

There is absolutely nothing wrong with having multiple accounts. In fact, many financially organized people do exactly that. Some have one account for spending. One for emergency savings, one for long-term goals, one for investing, and so on. The difference is that every account has a purpose. One question I now think is useful before opening any new account is: “What job is this account supposed to do?” If there is a clear answer, then the account might make sense. If there isn’t, it may simply create more complexity than value.

2. Leaving extra money sitting in a chequing account

Looking back, this was probably one of the first mistakes I made. Like many students, I had one bank account and everything happened there. My paycheques were deposited into it, bills came out of it, and any money I managed to save stayed there too. At the time, I genuinely thought that was what saving was. If I wasn’t spending the money, then I was saving it. Simple. The problem is that many chequing accounts earn little to no interest. While the money is technically safe, it isn’t really doing much. One of the biggest lessons I learned was that saving money and storing money are not always the same thing.

Another issue is that when all your money sits in one account, it becomes harder to tell what is actually available to spend. If your emergency fund, spending money, and savings goals are all mixed together, it can be easy to accidentally dip into money that was supposed to stay untouched. Something that helped me was separating money based on purpose. Having one account for everyday spending and another for savings created a mental barrier (in a good way). Suddenly my savings felt like savings instead of just extra money sitting there waiting to be spent. Even small amounts moved regularly into an account dedicated to savings can make a difference over time.

3. Chasing promotional rates without reading the details

The first time I saw a bank advertising a promotional savings rate that was significantly higher than what I was earning, I was immediately interested (pun not intended), as most people would be. You see a big number advertised and think, “wow, that’s a really good rate”. And it usually is. However, this is one of the most common topics discussed in banking forums for a reason. Many people focus on the promotional rate itself without paying attention to the details behind it. Some promotions only last a few months. Some only apply to new customers. Others only apply to new deposits. And some (I’m looking at you, Scotiabank) have even more complicated rules requiring a minimum balance, or requiring you to keep your money in the account for a certain period of time, or both. And once the promotional period ends, the interest rate may drop significantly.

I have seen countless discussions where people compare promotional offers and discuss strategies for moving money between institutions. One thing that experienced savers constantly remind each other is that getting the promotional rate is only half the strategy. The other half is knowing exactly when it ends. One mistake people make is opening the account, depositing the money, and then completely forgetting about it. A few months later they discover the promotion ended weeks ago and they are now earning a much lower rate.

That is why I always think promotional rates should come with a plan. If someone is opening an account for a promotional offer, they should also know what they plan to do when that promotion expires.

4. Not building an emergency fund first

If someone had asked me a few years ago about emergency funds, I probably would have thought they were something people worried about later in life. Maybe once they owned a house, maybe once they had kids, maybe once they had a full-time career. What I didn’t realize was that emergencies happen regardless of your age or financial situation – even if you’re a student! Life has a way of being expensive when you least expect it. When people first start saving, there is often a temptation to focus entirely on growth. Investing feels exciting. Watching money increase feels exciting. Searching for the highest return possible feels exciting. Emergency funds don’t feel as exciting. But emergency funds are often what prevent financial stress from turning into financial problems. Without emergency savings, people often end up relying on credit cards or lines of credit to cover unexpected expenses. Then what started as a temporary inconvenience becomes debt that follows them for months.

One thing I have learned is that emergency savings deserve their own space. Keeping emergency money separate from other savings makes it easier to avoid spending it on things that are not actually emergencies. The goal is not to build a perfect emergency fund overnight. The goal is simply to create some breathing room for life’s “fun” money surprises.

5. Thinking saving only counts if it’s a large amount

This is one that I think social media has made worse. It is easy to scroll online and see people talking about maxing out investment accounts, saving thousands of dollars every month, or reaching major financial milestones. For students and young adults, that can feel discouraging. There were definitely times where saving small amounts felt pointless. Saving $20 or $50 didn’t seem impressive. It felt like everyone else was moving faster.

But over time I realized something important which was that most successful savers didn’t start by saving huge amounts of money. They started by building habits. A person who saves $50 every month for years is often in a better position than someone who saves a large amount once and then gives up.

The hardest part of saving is usually not the math. It is consistency. Some months are better than others. Sometimes there is extra money available. Sometimes there isn’t. What matters most is building a routine that can survive both situations. Small amounts still count and small amounts still build habits. And those habits are often what lead to bigger financial goals later.

GIC rates have continued creeping higher, with the top 5-year GIC rate now at 4.10% (from Wealth One Bank of Canada). The top rates for other terms on our chart:

• 1-year GIC: 3.65% (MCAN Financial)
• 2-year GIC: 3.90% (MCAN Financial and Wealth One Bank of Canada)
• 3-year GIC: 3.90% (MCAN Financial and Wealth One Bank of Canada)
• 4-year GIC: 3.95% (MCAN Financial and Wealth One Bank of Canada)

For all but the 2-year term, you should be able to get an even higher rate from a GIC broker.

The current savings account interest rate leader is still Saven Financial, which offers 2.85% on both its regular savings account and TFSA.

Brokerage investment savings accounts continue to be an attractive option for any cash you have sitting in your investment account, but they have lost their former lustre. A couple of years ago, they used to be similar to, and even topped, the highest savings account interest rates.

Tangerine tiered rates vs traditional promo rates

Tangerine has offered targeted promotional savings rates to some existing customers for years (since at least as early as 2015) with a market-leading interest rate that lasts for a few months. This has consistently been one of the most frequently discussed topics in our forum. Over the past 2 years, some customers have reported receiving a new type of offer called a tiered savings rate, where the interest rate depends on how much money you have with Tangerine.

These tiered rates are often lower than the “traditional promo” rates, but they usually last longer (6 months instead of 3 months), and they apply to the entire savings account balance rather than only to new deposits. You also don’t have to “accept” the tiered rates when they’re offered, unlike the traditional existing account promos that you have to accept. As per usual, different promo rates are being offered to different clients.

Early reports of tiered rates were underwhelming:

Balance (total across Tangerine accounts) | Rate
$0 to $49,999 | 0.35%
$50,000 to $99,999 | 0.75%
$100,000 to $499,999 | 1.75%
$500,000 and above | 2.25%

… but more recently reported tiered rates have gotten better:

Balance (total across Tangerine accounts) | Rate
$0 to $49,999 | 2.00%
$50,000 to $99,999 | 2.50%
$100,000 to $499,999 | 3.00%
$500,000 and above | 3.50%

Even the highest tier still gives you a lower interest rate than the most recent new deposit promos (4.10%-4.25% for 3 months). This had led to concerns about people getting “stuck” on the tiered rates. However, we’ve had at least one report of someone being offered the traditional promo rates while on a tiered rate.

Outlook Financial discontinues Me2Me transfers

“Me2Me transfers” is what Outlook Financial calls the ability to link external bank accounts in order to push or pull funds. It has been 11 years since Outlook Financial first started offering this, but that ends on June 11. It’s odd that they’re completely discontinuing it (rather than simply changing it to use something like Flinks or Plaid), because most online banks support this to make it easier to move your money. (None of the big banks support linking external accounts; you have to make the link from the other financial institution.)

Outlook Financial’s own announcement says that alternatives include e-Transfers, but that you can write yourself a cheque or initiate the transfer from the other financial institution.

Wealthsimple: more and more features

Wealthsimple’s latest product announcement was predictably less grandiose than its “We Take Over Your Life” headline. It nonetheless included some notable highlights:

• Kids and Teens Accounts (coming this fall): designed to give young users access to basic banking tools while allowing parents to maintain oversight/control of the account. Parents can view transactions in real time, receive customizable purchase alerts, set spending limits for individual transactions or weekly and monthly totals, block certain spending categories, and freeze or unfreeze the card when needed. It also allows parents to provide allowances, transfer additional funds, and to pay additional interest as an incentive for saving. This complements Wealthsimple’s existing “Household” feature that enables you to view linked accounts from a single dashboard.
• Portfolio line of credit (available now): access to immediate credit when borrowing against your portfolio
• USD chequing accounts (coming this fall): Wealthsimple already offers a USD savings account, but a USD chequing account is coming soon for both personal and business accounts, providing “access to US payment systems” — will that include ACH banking details?
• Additional business account features: business portfolio line of credit is coming this spring, and a prepaid card is coming this summer
• A bunch of giveways, including “Monthly Millionaire” — this might be inherently cheesy, but is still a cash giveaway, and unique compared to other financial institutions!

A primer on gold: new article

Is gold part of your investment portfolio? Or have you been intrigued by the meteoric rise in gold prices over the past 2 years, and want a primer on gold as an investment?

Rico M’s latest article is on “The wonderful world of gold and its investment opportunities: part 1“.

He covers the history of gold, the types of gold (paper versus physical gold), ways to invest in gold, the karat unit purity measurement, and the risks of investing in gold!

You have likely seen gold in one form or another. Gold can be jewellery, a luxury accessory, a fine dining flex, or the classic safe haven / hedge asset that investors gravitate towards when markets become a little too volatile. Gold as an asset and as a commodity has long carried a reputation for holding value and being considered the “gold standard”, which is why it continues to show up in conversations about diversification, inflation, and long-term investing. It is also one of those rare things that manages to be both serious and meme-worthy, whether it is associated with wealth, tradition, or a certain unforgettable Austin Powers reference to “Goldmember”.

So, what exactly is gold, and why do people buy it? Is it worth adding to a portfolio and holding onto? All these topics and more will be discussed in this two-part series as gold is broken down as an investment opportunity.

Understanding the basics of gold: a quick jump through time

Before being able to dive into the basic foundations of gold and its modern-day use cases, it is important to have the historical and cultural understanding of gold, and what led to its rise in popularity.

Gold has been traced as far back as ancient Mesopotamia around ~4000 BCE. Ancient civilizations used it for jewellery, religious artifacts, and symbols which were representative of divine power and wealth. Those who held gold were quickly considered powerful and wealthy, often seen as having divine status, as wealth was closely tied to both power and religious clout. Over time, gold began to outshine other metals like silver, bronze, and copper, which were heavily used during the Bronze Age for tools, weapons, and as early coinages. Part of the reason for gold becoming adopted and being highly sought after was simply because of its natural scarcity. Its high malleability also made it easier to shape without breaking or damaging. These traits continued forward with its association and characteristics of wealth and status until ~600 BCE when it replaced the legacy bartering system and became the official coinage for trade. And the rest, as they say, is history — and what we now know as the gold standard today, at least from a benchmark perspective.

What is the “gold standard”?

The “gold standard” was a monetary system where a country’s currency value was directly linked to a specific amount of gold. Essentially, the higher the gold reserve, the stronger the currency was. No major countries are tied or pegged to the gold standard anymore (since the USA essentially ended it in the 1970s). Today, the gold standard is commonly known as a metaphor for a benchmark representing the best-in-class to be used in comparisons.

What are the types of gold to invest in?

There are several ways to invest in gold, but they generally fall into two buckets: physical gold and paper gold. Physical gold includes bullion, bars, coins, and jewellery, while paper gold includes exchange-traded funds (ETFs), mutual funds, futures and forward contracts, and mining stocks. Each asset class has its own unique set of risks and benefits.

Physical gold

Paper gold

Paper vs physical gold as an investment

When considering whether to buy gold, investors should be clear about what they are trying to achieve and how much risk they are comfortable taking on. For example, beginners may want to consider physical gold, as it is traditionally a relatively risk-off allocation (lower risk than paper gold and many other non-gold investments, as its price is impacted by the spot price of gold and in the case of jewellery, rarity). As a result, physical gold can offer direct exposure and diversification for investors.

By contrast, gold mining companies have additional risks such as management performance, property issues, legal risk, and even the possibility of mining nationalization. In that sense, mining stocks are more of a risk-on (higher risk at least compared to physical gold) way to gain exposure to gold, but can come with higher upside potential as their share price is impacted by more than just the spot price of gold. Gold funds, ETFs, and futures offer a variety of risks but have higher liquidity ratios and can be correlated to the spot price of gold or can leverage derivatives to increase upside potential. Of course, with higher upside potential there is also greater downside potential.

So rather than treating all gold investments the same, investors should think of them as different opportunities within the same space that have varying degrees of risk, liquidity, and upside potential.

Should I buy gold?

Whether or not you should buy gold depends on your goals, time horizon, and risk tolerance. Gold can be useful if you are looking for added diversification, a hedge against uncertainty, or exposure to a hard asset. However, gold is not designed to be a high-growth investment.

Historically, its performance is under 10% (annualized since 1916) and has had periods of extended stagnation. Recent years have experienced higher annualized returns due to heightened uncertainty and geopolitical tensions, sending the underlying asset to historic highs, hitting almost $5,600 USD an ounce in January 2026. However, because gold does not generate earnings, dividends, or cash flow, it is often not relied on as the primary growth engine for a portfolio and is generally a sleeve within a broader diversified portfolio.

When considering whether to buy gold or not, investors should consider if a specific type of gold exposure (the type of gold) fits or meets the role in their portfolio or life prior to investing, especially when nearing historic valuations.

Karat gold, and what is its purpose?

Like other hard assets, gold has a valuation of purity that is known as “karat”. Gold purity or “karat” is valued out of 24 and it denotes the ratio of pure gold to base metals and alloys. The higher the karat, the higher the purity, and thus higher the value. At the same time, the lower the karat value, the higher alloy content, and thus generally lower value. For example, 24K or 24 karat gold is around 99-100% pure gold, which implies that the value of the item would be higher relative to the spot price of gold. A lower karat gold such as 18 karat, has around 75% gold, and its value would then be lower in contrast to 24 karat due to having a higher alloy content. What is important to note is that the karat level also impacts the end use. Lower karats, such as 22K, 18K, 14K, or 10K, are ideal for jewellery as they are more durable due to having higher alloy content; but it also means you are getting less gold per gram, so the value is less. If the goal is purely investment-based, then higher karat content is the direction. If the goal is more practical or jewellery based, then lower karat content is the direction.

How to verify the authenticity and purity of physical gold?

Before buying gold, it is important to verify both its authenticity and purity. The easiest way is to check for official stamps, mint markings, karat markings, assay certificates, and serial numbers where applicable. These steps are often easy to conduct, especially when buying gold from established and reliable places that are transparent with their offering. Organizations like major banks, recognized bullion dealers, governments, and retail stores like Walmart and Costco will have all these details available (and often on display). These establishments are also recommended for purchasing physical gold items vs online stores, secondary markets, or private sellers. This is due to their transparency, historical backings / established reputations, and clear return policies. An added benefit is that most established retailers will have secured delivery and proper storage for the precious metals.

What are the risks of investing in gold?

Just like any investment, gold comes with its own unique set of risks. While gold can help diversify a portfolio and act as a hedge during periods of uncertainty, it is not entirely risk-free.

For example, the price of gold can fluctuate significantly based on market conditions, investor sentiment, interest rates, inflation expectations, and global economic events, sometimes even market volatility can play a role. If the market price of gold declines, the value of both physical and paper gold investments can decline as well.

As previously discussed, physical gold comes with liquidity and storage considerations. Unlike stocks or ETFs that can typically be bought and sold quickly on an exchange, selling physical gold can sometimes take longer depending on the type of asset and market demand. In certain situations, investors may need to sell through dealers, secondary markets, or private buyers, which can impact pricing and liquidity. Physical gold may also require secure storage and insurance, both of which can increase the overall cost of holding the investment. The value of physical gold can also vary depending on the form of the asset. For example, bullion products are generally tied closely to the spot price of gold, while collectibles may derive additional value from rarity, condition, historical significance, or brand recognition.

Paper gold investments, such as ETFs, mutual funds, and futures contracts, introduce a different set of risks. In addition to market risk, investors may also face product risk depending on how the investment is structured. For example, some gold ETFs and mutual funds may not hold physical gold directly and instead gain exposure through mining equities, futures contracts, derivatives, or other financial instruments. This can cause the investment’s performance to differ from the actual movement of physical gold. Additionally, because it is a paper gold investment, liquidity constraints can play a role too, which is why some ETFs or mutual funds may be delisted due to a lack of money-in-flow (not enough investment in the fund, and low liquidity so it is terminated).

More complex gold products introduce counterparty risk. This risk is generally associated with investments that rely on futures, swaps, derivatives, or contractual agreements between financial institutions rather than direct ownership of physical gold. Counterparty risk is where the other party in the transaction defaults on the contract before settlement, causing the value to decline or when an investor is trying to convert the paper asset into the underlying physical assets, but the physical asset is not delivered. In some cases, this could impact the value, settlement, or redemption of the investment. Complex products can be beneficial for experienced investors or those working directly with an investment professional.

So, is it better to buy gold coins, bars, or jewellery as an investment?

This comes down to personal preference but also an investor’s goals and intended use. Gold bars are often preferred by investors looking for lower premiums and direct exposure to the spot price of gold. Gold coins can offer better liquidity, recognizability, and collectability, but may come with slightly higher premiums. Jewellery, watches, and collectible pieces can sometimes generate strong returns due to brand value, rarity, and demand, but they can also be significantly harder to value and resell. For investors focused purely on gold exposure, bullion bars and investment-grade coins are generally an easier option.

Summary: how to invest in gold (basics about physical vs paper)

This is where many beginners get tripped up, because “owning gold” can mean very different things. Physical gold means you actually hold the metal in the form of bars or coins. Paper gold usually means gold ETFs, gold funds, mining stocks, or other financial instruments tied to the metal’s price.

Physical gold gives you direct ownership, but it also means dealing with storage, insurance, and security. It can also be less convenient to sell quickly if you need cash fast. Paper gold is easier to trade, simpler to buy in a brokerage account, and often cheaper to store, but it can introduce different risks because you do not personally hold the metal.

In plain English:

• Physical gold is better for people who want tangible ownership.
• Paper gold is better for people who want convenience and liquidity.

Stay tuned

If you enjoyed this introductory edition to the wonderful world of gold and its investment opportunities, stay tuned for part two of the series as we explore the technicals related to gold: the factors that impact the price of gold, tax implications, market drivers, and more!

Disclaimers

This article is independently written and not sponsored by any financial institution. The views expressed are solely those of the author(s) based on their research and analysis. The content is for informational purposes only and should not be considered financial advice. Always consult a qualified financial professional before making investment decisions. Reading this article does not create a professional relationship with the author(s) or affiliated organizations. It is not a substitute for personalized financial guidance.

Investing involves risks, including potential loss of principal. Readers are solely responsible for their investment decisions. Past performance does not guarantee future results. Historical or projected returns may not reflect actual future performance. The use of information in this article is at the reader’s own risk. The author and publisher are not responsible for any errors, omissions, or resulting losses/damages.

It’s been another low-key month for savings accounts, with the most exciting move being an interest rate increase at MAXA Financial and Outlook Financial from 1.75% and 1.80%. Saven Financial still leads the pack at 2.85%, and BMO (yes, BMO) leads a slew of promos with 4.65%.

GIC rates have been quietly creeping up, and you can currently get at least 4.00% on a 5-year GIC at no fewer than 5 financial institutions.

Challenger banks making waves

EQ Bank, who trademarked the phrase “Canada’s Challenger Bank^TM“, received official approval for its planned takeover of PC Financial, with the deal estimated to close this summer.

Wise, best known for international money transfers and foreign currency exchange, is now offering interest on balances you keep with them. You’ll get 2.22% on CAD balances, 3.14% on USD balances, and even interest on Euro (0.8%) and British Pound (2.21%) balances.

Wealthsimple’s assets under administration are up 71% from last year, and 1 in 5 Canadians between 18 and 40 use at least one Wealthsimple product.

Free data roaming for all Visa cardholders

Your Visa now comes with a free eSIM benefit from GigSky, and if you have a Visa Infinite Card, unlimited data for 7 days in some destinations. There is also a new class of credit cards called “Visa Infinite +” (starting with 2 from Scotiabank) which come with a 10GB global eSIM valid for 15 days. This writer assures you that this is not an ad — just sharing the excitement with anybody looking to stay connected during any summer travel!

Amidst a turbulent first quarter of 2026, who would have thought you’d find dependability in… Canadian high interest savings accounts? Saven Financial has been the non-promotional rate leader all year at 2.85%, and no rates on our chart have changed in 2026.

GICs vs promo hopping: some quick math

3.65% is currently the highest 1-year non-registered GIC rate that we track (from Wealth One Bank of Canada). That gives you a guaranteed rate, but your money is locked in for the year. Is promo hopping a more flexible, although decidedly less guaranteed alternative for your savings?

The highest promotional savings account interest rate that we track is currently 4.80% through Vancity, although that rate ends on April 30. There are always various targeted promos for existing customers – current ones include 4.25% for 3 months at Tangerine, 4.30% for 3.5 months at Coast Capital Savings, and 4.60% for 2 months at RBC.

If you were able to get a promo rate of 4.25% for half the year, and 3.00% for the other half of the year (which is Neo Financial’s savings account interest rate if you have over $20,000) that gives you an average of 3.69% for the year when monthly compounding is factored in.

Of course, that alternative seems much less worth the hassle if you’re willing to lock your money into a 5-year GIC, where EQ Bank is currently offering 4.00%.

Managing debt in your 20s

Our student writer Lena M is back, exploring the topic of debt: student loans, credit cards, lines of credit, and more. Back in 2024 she got her first credit card and now has some firsthand experience to share about not just the logistics around credit cards, but also the psychological aspects. It can be a lot for a young person to navigate, alongside managing student loans; in her latest article, she shares quite a few practical tips related to debt.

Bank hopping, social hopping, and… taxes

• Forum discussion: Moving away from the big 5 banks
• Did you miss our Instagram Easter giveaways? Follow along for personal finance tips throughout the year, and perhaps more contests to come!
• Check out our income tax filing forum to compare notes on T slips, income tax software, and the slow demise of paper filing. Last month’s poll results revealed that 43% of respondents had already filed their taxes or that they were planning to do so by the end of March. 55% were planning to do so by the end of April, while 2% were planning to file their taxes starting in May. The most common delay cited was around waiting for the arrival of T3 slips.
• Looking for a credit card that does not charge foreign currency exchange fees? Check out our cash back website, which features several such cards, including the Scotiabank Passport Visa Infinite Card.