Dreaming of the trip of a lifetime? Planning to purchase that cottage? Laying a brand-new patio next year? Then the right move could be to get your money earning for you in a Laurentian Bank High Interest Savings Account (HISA), bringing your dreams that matter most closer within reach.

With its competitive interest rate,¹ a HISA may be the right savings solution for you. That said, you probably have lots of questions. We've asked Laurentian Bank Personal Banking Advisor, Saadia Bahsis, to answer them for you.

Is a HISA a safe investment?

100%, since your returns are protected from the ebbs and flows of markets. That means it's never a bad time to save—the earlier you start, the more you earn.

Plus, up to $100,000 of what you save is covered by the Canadian Deposit Insurance Corporation (CDIC).²

What happens if I need to make a withdrawal?

You never lose access to your money, especially when you need it most. Simply transfer funds from your HISA³, to your chequing account.

How is interest paid out?¹

Interest is calculated using the minimum daily balance of your account for 30 days and it's paid monthly.

Let's say you've kept $1,000 in your HISA all September long. At the end of the month, you would receive a payment of $2.47, given your HISA's 3% annual interest rate. The following month, your minimum balance would increase to $1,002.47.

As your returns grow with the capital you invest, every dollar saved is an opportunity to earn more.

To calculate monthly interest on your own, all you have to do is divide the annual interest rate by 365 days (1 year), then multiply that number by your account balance (1,000 in this example) and once again by 30 (1 month), like so: (0.03 / 365) x 1000 x 30.

Are promotional interest rates always your best bet?

The following chart demonstrates how crucial calculating annual interest is to finding out which rate really earns you more.

How can I save faster?

Two words: automatic savings. Step one: draft a budget that clarifies your income and expenses. After you know how much money is coming in and going out, you'll know exactly how much you can transfer to your HISA every month.

Setting up recurring transfers can help you grow your savings effortlessly. Already have a Laurentian Bank chequing account? Then you're just minutes away with LBCDirect.³

What kinds of transactions can I do with a HISA?

Unlike a chequing account that can service your everyday banking needs, a HISA is more like a piggybank—it's all about savings. So when you open a HISA, no card will be issued. That said, you can use it to transfer funds between accounts, financial institutions, and via Interac e-Transfer^®.^3,4

Can I open a HISA with my partner?

Totally, especially since it's such a great way to save for that cruise you've been dreaming of for so long. If you're more inclined to keeping your feet on dry land, opening a joint HISA can also help you budget for property-related expenses, or start a rainy day fund for life's little surprises.

To open a joint account, both you and your partner must be current Laurentian Bank customers. Simply stop by your branch to see your advisor.

Are the returns generated by my HISA taxable?

Since our HISA is considered a non-registered savings account, annual interest is considered taxable. Tax slips are issued when the annual interest credited exceeds $50. It is your responsibility to declare all interest income for tax purposes.

I don’t have a lot of cash on hand. Can I invest in a HISA?

Since there's no minimum balance required, the interest clock starts ticking with the first dollar saved, which makes a HISA a fantastic option for every budget.

Can I open an account online?

Yes, in 5 minutes or so. You can even open a chequing account online. Plus, with LBCDirect online banking and our mobile app, you can do most of your everyday banking using your computer, tablet, or phone.

Get your savings earning for you today