No, no, this isn’t one of those “get rich quick schemes”, as you had probably hoped for.  There is one way to net an easy 19% to 21% return, and it’s probably not what you had in mind.

What I’m talking about is to get rid of that balance (if you have one) on your credit card(s).

If you have a credit card balance and are also setting aside some funds every month to your savings account or trying to invest the money in the stock market, then you’re going about it the wrong way, sorry to say!

In your savings account, you’re likely to get say… 1.6% interest on your investment.  In the stock market, you may average 8% (if you’re lucky, these days!)… if you have a credit card that is carrying a balance, and you’re only paying the minimum $10 a month, then you are paying the credit card companies (and they love you for it, trust me) 19% interest per annum calculated per day.

What might this look like?

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High Interest Savings accounts are a great way to have someplace to stash your money so it can be readily accessible.  These days, their rates are pretty much the same as GIC’s so might as well keep them here to avoid a penalty if you withdraw a GIC too early.

Some people keep loads of money in their chequing account or “savings” account at the bank so they feel good when they withdraw money from the ATM and it tells you your large balance.  The savings accounts at the bank offers what, 0.3%??  AND they make you have a minimum balance and ‘ding’ you for using too many transactions.  These are not savings accounts.  You want a real one that gives you some substance.

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