Canadians Are Saving 4 Times As Much As Usual — Here's How To Do It Right

If your money is just sitting in your chequing account, you’re squandering its potential.

Nadezda Murmakova / Shutterstock

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware this post may contain links to products from our partners. We may receive a commission for products or services you sign up for through partner links.

By Shane Murphy Jan. 22, 2021

The pandemic has spooked Canadians into slowing their spending and cut off opportunities to splurge on trips to Hawaii and dinner dates. The result has been an incredible surge in household savings.

While Canadians savings rate dropped from record-highs to 14.6% of their disposable income in Q3 of 2020 — it was still up 946% compared to the same time last year. The average for 2019 as whole was 3%.

Canadians squirreled away a staggering $90 billion in late 2020 according to research from CIBC.

If you’ve followed suit and stashed some solid pandemic savings, you deserve to pat yourself on the back. But if your money is just sitting around in your chequing account, you’re squandering its real potential.

Read on to learn how to make the most of your COVID-19 savings.

About the Author

Shane Murphy

Reporter

Shane is a reporter for Money.ca. He holds a bachelor’s degree in English Language & Literature from Western University and is a graduate of the Algonquin College Scriptwriting program.

What to Read Next

What is a high-interest savings account?

Don't get stuck with a savings account that pays puny interest.

By Shane Murphy

The bank accounts you need to know about

Having the right banking products is crucial to your finances in the long run.

By Barry Choi

What is the Bank of Canada interest rate?

Here's how the bank's actions can affect your everyday spending.

By James Battiston

As news is still shared on Facebook, Instagram, Meta may yet be regulated: St-Onge

By The Canadian Press

Disclaimer

The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.