1. Reexamine your budget
Budgets are a great tool to help you stay on track with your spending and savings goals, but they need regular updates to maximize their effectiveness. Hopefully you’ve recorded any changes to your income, expenses or financial goals during the year. If not, now is the time to do an in-depth update and analyze your progress.
If you find evidence of impulse spending, it’s time to make some adjustments. For example, instead of keeping all your income in a checking or savings account with direct access, you can sock some of it away in an account like EQ Bank’s high-interest account. no fees Savings account notification. In exchange for advance notice of a withdrawal (10 or 30 days), you will receive a higher interest rate. It’s a win-win for spontaneous shoppers who want to keep some of their money at bay.
EQ Bank Statement Savings Account
- Monthly fee: $0
- Interest rates: 2.60% for a notice period of 10 days, 2.75% for a notice period of 30 days. Read all the details on the EQ Bank website.
- Minimum balance: n/a
- Eligible for CDIC coverage: Yes
2. Simplify your money management
If you think managing your own spending and saving is a challenge, try it with others! For some people, such as couples, family members or even roommates, budgeting can be complicated due to shared expenses or joint savings goals. That’s where a joint bank account can make a big difference.
When you open a joint account, all account holders (you and up to three other people) can deposit, withdraw and save into the same account. Instead of trying to keep the books separately, everything is in one place. Make easier money management part of your financial resolutions. Pro tip: Consider a bank account with no monthly fees and a high interest rate The joint account of EQ Bank to grow your money.
3. Supplement your retirement funds and receive a tax benefit
Registered Retirement Savings Plans (RRSPs) allow you to save for retirement in a tax-advantaged account, meaning every dollar you put aside can reduce your taxable income for the next year. Each year you have a certain amount of contribution room for your RRSP, and any unused room carries over to subsequent years.
Taxes on your RRSP savings are not due until you withdraw. The idea is that you retire at that time, so your tax rate is lower than during your working years.
Although the last day to contribute to your RRSP is in March, many Canadians aim to top up sooner. Not only does this give your savings more time to accrue interest, but it also ensures that your retirement savings don’t accidentally go toward vacation expenses.
4. If you need it, consider withdrawing money from your tax-free savings account (TFSA) before December 31.
Similar to the RRSP, a tax-free savings account (TFSA) is a tax-advantaged registered savings account to which a certain amount of contribution room is added annually. The difference is that when you put money into a TFSA, you don’t get a tax break on your income taxes. Instead, any profits you earn are yours, tax-free.
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The annual deadline for TFSA deposits is December 31, and you will receive your new contribution room on January 1. What you may not know is that when you withdraw money from your TFSA, the amount you withdraw will be added back to your contribution room the following calendar year.
So if you expect that you will need money soon, but still want to use your room with full contribution next year, a withdrawal before December 31 is a good time to do so, because you will get that room back quickly.
EQ Bank TFSA Savings Account
- Interest: Earn 1.50% on your savings. Read the full details on the EQ Bank website.
- Minimum balance: n/a
- Costs: n/a
- Eligible for CDIC coverage: Yes, for deposits
5. Take advantage of saving for a house
A first home savings account (FHSA) is a tax-advantaged investment that works similarly to an RRSP in that the money you deposit can reduce the amount of your taxable income. And, just like a TFSA, the money you withdraw is tax-free. Each year’s unused contribution space rolls over to the next year, so if you’ve never contributed but open one now, you can contribute up to $16,000 per person in 2026 (or double that for a couple).
Unlike a TFSA or RRSP, you don’t start accumulating contribution room until you open the FHSA. So if you don’t have an FHSA but plan to open one, doing so before December 31 can give you an extra year of contribution room in 2025.
On the other hand, if you have some extra money (perhaps a year-end bonus!) to allocate toward savings, contributing to your existing account before the December 31 deadline could lower your 2025 taxable income.
Get started with a financial plan for the new year
The end of the year is a good time to assess your financial health. By choosing the right banking products and making smart investment decisions, you can build momentum towards lasting security and success.
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