Planning holiday spending and cash gifts? Here’s how to boost your budget

In addition, three of the year’s busiest shopping days are coming up: Black Friday, Cyber Monday and Boxing Day. In the meantime, whether you’re holding out for the lowest prices on big-ticket items or preparing to give a sizable monetary holiday gift, putting your cash in a high-interest savings account (HISA) can help those funds grow until you’re ready to use them.

Where to hold cash intended for gifts this holiday season

Using a HISA is an easy way to grow your cash savings. Moving your money from a regular savings account to a high-interest one will earn you more interest. It’s like getting a bonus while you wait.

HISAs also provide convenient access and flexibility that fixed-term options like guaranteed investment certificates (GICs) and bonds don’t, making a HISA an excellent place to hold savings you may need to access soon. (Read more about comparing HISAs, bonds and GICs.) Simplii Financial’s High Interest Savings Account provides a flexible way to earn interest on your money. The account has no transaction fees or monthly fees, and no required minimum balance. You’ll have easy access to your account through Simplii’s online and mobile platforms, as well as one of Canada’s largest national ATM networks through CIBC. Plus, your savings are protected by the Canada Deposit Insurance Corporation (CDIC), subject to maximum coverage limitations.

For a limited time, earn bonus interest on your savings

This will put you in the holiday spirit: Simplii Financial has a promotional HISA interest rate of 6% for the first five months. (The promotion ends Jan. 31, 2025.) If you’re considering making a significant cash gift to family or friends, this extra interest can be a meaningful boost—whether you pass it on or keep it as a bonus. How is interest calculated on your HISA? Interest is calculated by multiplying the daily interest rate (based on the applicable annual rate) by the daily closing balance of your account and is paid into your account monthly. Rates are subject to change without notice. Visit Simplii Financial’s website for current rates.

A HISA isn’t just for the holidays

While it can be a powerful tool for boosting your holiday budget, a HISA is also an excellent place to park funds anytime you want to keep cash accessible while earning a higher rate than a regular savings account. For instance, if you’ve recently downsized your home and are figuring out your next real estate move, or you’re saving for a new car or a dream vacation, a HISA offers flexibility and growth potential as you plan.

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About Jessica Morgan

Jessica Morgan is a personal finance writer, speaker and the founder of Canadianbudget.ca. With an MBA from Toronto Metropolitan University, she focuses on financial literacy for women and public sector employees.