Where can expats save/invest money in Canada?
December 1, 2013 11:34 AM Subscribe
Where can expats save/invest money in Canada? The bank's interest rate is so low. Please tell me there is a better way to invest my money!
I just started working in a small Canadian city. My current plan is to work here for at least two years and save money for the down payment of my first home. As I’m not a Canadian citizen or PR, I’m not eligible for the government saving and retirement plans (if not mistaken). I’m interested in low-medium risk investment plans that can give me 3-7% interest rate. However, this seems to be too much to ask because the highest interest rate of any saving account is 1.7%! Since the interest rate is still higher than last year inflation rate, I might consider putting some money in a saving account. Are there any better alternatives out there that I’m not aware of? Cheers!
I just started working in a small Canadian city. My current plan is to work here for at least two years and save money for the down payment of my first home. As I’m not a Canadian citizen or PR, I’m not eligible for the government saving and retirement plans (if not mistaken). I’m interested in low-medium risk investment plans that can give me 3-7% interest rate. However, this seems to be too much to ask because the highest interest rate of any saving account is 1.7%! Since the interest rate is still higher than last year inflation rate, I might consider putting some money in a saving account. Are there any better alternatives out there that I’m not aware of? Cheers!
I should add that this is first hand empirical knowledge including 5 years of successfully filed taxes etc. Unless your in Quebec province won't matter. I only say that because Quebec has many odd rules and I'm not going to guess about them.
posted by chasles at 1:38 PM on December 1, 2013
posted by chasles at 1:38 PM on December 1, 2013
an expat interested in an rrsp needs to make sure to make the appropriate elections for US tax purposes, otherwise Very Bad Things happen.
posted by jpe at 1:49 PM on December 1, 2013
posted by jpe at 1:49 PM on December 1, 2013
What citizenship do you have?
I am a U.S. citizen and my accountant advised me against TFSAs and RESPs because they are still taxable in the U.S., and because they carry substantial reporting burdens. If you have one of these you may have to file a separate sets of tax forms with the IRS months before your usual tax forms (which you have to file too, obviously).
posted by grouse at 2:45 PM on December 2, 2013
I am a U.S. citizen and my accountant advised me against TFSAs and RESPs because they are still taxable in the U.S., and because they carry substantial reporting burdens. If you have one of these you may have to file a separate sets of tax forms with the IRS months before your usual tax forms (which you have to file too, obviously).
posted by grouse at 2:45 PM on December 2, 2013
Response by poster: I'm not a US citizen.
Which is better, RRSP or tax-free saving account? Somebody told me that my money will be half gone when I withdraw from RRSP.
posted by liltiger at 8:54 AM on December 8, 2013
Which is better, RRSP or tax-free saving account? Somebody told me that my money will be half gone when I withdraw from RRSP.
posted by liltiger at 8:54 AM on December 8, 2013
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posted by chasles at 1:35 PM on December 1, 2013