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#1. What is the difference between a bank and a savings account? A bank can offer multiple financial services such as loans, personal counseling, credit cards, investments to name just a few. A savings account is for those who want to save money or earn interest on their cash by depositing it with the bank. Its clear this one has a lot more going for it than its counterpart so I would say that there should be no debate about which type of account would be better for a retiree.This article gives two possible scenarios in which individuals could use both types of accounts and makes an argument about which one they would prefer based on these scenarios. #2. Which is better, having $3,000 in your bank account or $5,000 in your RRSP? If you are wondering whether your money will be better off in a savings account or an RRSP then this is one of the most common questions that is asked when it comes to personal finance. There are specific factors that need to be taken into consideration when making this decision especially if you already have some money saved up in an RRSP with some years before you will retire.The most obvious answer to this question would be that the more money you save now the more money you will have later on in life. By saving money in an RRSP you are making sure that you will be able to afford the increased costs of living in retirement like increasing your monthly house payment, increasing your mortgage, increasing your food and shelter costs.* Savings rates may vary. Source: (Bogleheads Canada) Unless people are comfortable with the idea of leaving their money in an investment account there is no reason why they should not save within their RRSP. For more info on this topic check out these blogs that will help you determine whether or not you should put your money into an RRSP: #3. Why would someone leave money in an investment account? This is a very common question that many people ask themselves when it comes to personal finance. The reason for this is because they want to know how much interest they will earn on their money, if they are investing in the stock market, what kind of securities are available, etc. The primary purpose of having an investment account is to invest ones funds so that it may grow over time with minimal risk. There are different types of investment accounts to choose from which include RRSP, RESPs, TFSAs, registered accounts like LIRAs, etc. Another reason why people would choose to invest in an investment account that is not directly linked to an RRSP is because it allows them the flexibility to withdraw money whenever they want. This option is not available with an RRSP. Another reason for this may be because there are certain taxes that are associated with RRSP's. One of these taxes is called the Alternative Minimum Tax which was created in order to ensure that individuals did not take advantage of tax free dollars by stuffing their retirement funds.* Savings rates may vary. cfa1e77820
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