« back to Personal Finances

Saving for a goal? Make it automatic

July 26, 2012

People have the best intentions when it comes to saving their money. A momentary lapse in discipline can easily get in the way of you and your financial goals. Luckily, there is a simple way to save regularly and consistently. Whether you dream of owning your own home or sending your kids off to college, opening a dedicated savings account is the way to make it happen.

Forget about complicated financial strategies. An Automated Savings Plan (ASP) takes the hard work out of saving by automatically making regular, automatic contributions on your behalf.

How an ASP works

An Automatic Savings Plan will automatically transfer a specified amount of money from your chequing or savings account to a designated savings account on a regular basis. All you have to do is set the amount you’d like to put aside and the interval – the ASP account does the rest.

You can choose to contribute weekly, bi-weekly, monthly, quarterly, semi-annually or annually. You can change how much and how often you transfer to your account any time.

The magic of compound growth

Regular contributions can help you build your savings faster. Your money starts earning interest as soon as it’s in your account. Not only that, but any interest you earn also earns interest. The longer you invest, the more compound interest you accrue, and the faster your savings account grows.

With so many things competing for your dollars these days, starting an ASP is one of the most effective ways to make sure your savings get the priority they deserve. Now is the time to visit your local branch and get the power duo of regular contributions and compound growth working for  you.