Increased Savings And Lesser Risk At The Canadian Banks

The Canadian banks may well be benefiting greatly from the savings safety net in which most people usually park their money. Recently there has been a growing trend where Canadians put their money in the checking and saving account instead of some risky investments. Banks there have shown a 19 percent increase in savings in only last year which is up from the 3 to 4 percent they got in the year before.

A financial service advisor David McVay explained that the Canadians are usually extra conservative as compared to 2007 and now more and more of people are paying off the loans, busy opening tax free saving accounts than ever before. There is a clear shift in the people’s perception from the stock markets towards parking more money in the saving accounts as a result of the financial crises.

Clearly the Canadian banks are marketing to the insecurity of the Canadians about their savings caused as a result of the financial crises. The most recent increase of 20 percent in the saving and checking service accounts of the banks will add up about $100 billion in new business to these banks.

A Scotia bank survey done recently by Harris/ Decima, has shown that about one third of Canadians have no saving accounts and about 90 percent of those who were surveyed told that they felt comfortable in having the safety net of savings.

It has also been found that about 58 percent of the people surveyed saved money on regular basis but one out of five Canadians actually confessed to having no savings at all. The debt to income ration has also shown a dramatic rise and is currently pegged at 146 percent mark. This clearly means that for each dollar which is made by a person, they actually owe 41.47. These figures amply indicate that now it is even more important to save than we did before the recession time. Being always prepared for our future is really the safest bet.

Leave a Reply

Your email address will not be published.