A significant number of Canadian women may not fully understand how inflation is draining their savings – 3 money moves to make right now

In Canada, that gap has real consequences. Bank of Canada data shows inflation has been running well above the interest most traditional savings accounts pay, (2) meaning money parked in the wrong place isn't just stagnating — it's losing purchasing power. Understanding that distinction, and acting on it, is one of the most straightforward financial moves available to Canadian savers right now.

Why habit — not knowledge — may be the bigger barrier

The Vanguard survey points to a variety of forces keeping savers in underperforming accounts, including habit and inertia. Most people stick with the bank they've always used and the account that came with it, without stopping to ask whether it's still the right fit.

Another reason for the lack of strong savings could be that women are more likely to identify as "savers" rather than "investors" — and high-interest savings accounts (HISAs) are sometimes offered through investment firms or digital-first banks, which can make these accounts feel like something for a different type of customer. That framing can discourage exploration even when the product itself is simple and low-risk.

In Canada, it’s possible that consumers are not always aware of the full range of deposit products available to them, including higher-yield options at federally regulated institutions. The accounts exist — but the gap is awareness, not access.

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What inflation actually does to a low-rate savings account

Here are the mechanics: if your savings account pays 0.5% annually and inflation is running at 2.8%, your money is effectively losing 2.3% of its purchasing power each year. In this illustrative example, $10,000 sitting in a low-yield account for five years would be worth roughly $8,900 in today's dollars — even though the balance shows a gain.

The Bank of Canada's inflation target range is 1% to 3%, with a midpoint of 2% (2), and conventional savings account rates at Canada's major banks have frequently sat well below that threshold. High-interest savings accounts at federally regulated institutions, by contrast, have in recent periods offered rates meaningfully above the big-bank baseline — sometimes 10 to 20 times higher.

The annual percentage yield (APY) — or in Canadian terms, the annual interest rate — is the number to watch. If it isn't at or above the current rate of inflation, your savings are losing real value.

3 practical moves Canadian women can make right now

Sonia Fraher, Vanguard's head of Cash Management, argues that awareness is the first step in combating the issue of savings not keeping up with inflation.