Deposit Your Cash Stash in a Flash
Everybody likes cash. If no one is around, who wouldn’t pick up a $50 dollar bill on the ground and claim to be the owner of it? When you go home with the cash in your pocket, are you going to hide it with your personal stash? Or are you going to deposit it in the bank? You should deposit in the bank. Here’s why. Cash is simply paper with the words, “This note is legal tender” and fancy security features on it. However, it has a perceived value, which is usually the large-sized number printed on both sides of the paper. Its value is for you to decide. Now you ask, “If I decide the value, why should I put it in the bank?“
You should put it in the bank because the overall value of your country’s currency is always changing, i.e., inflation or sometimes deflation. As prices increase, you will need to spend more cash to make a purchase. Therefore, the value of your cash decreases over time at the rate of inflation. Correct me if I’m wrong because I’m no economist, but bankofcanada.ca is my homepage, haha. To prevent your cash from losing value, you can put it into the bank to collect interest. Better yet, put it into an online bank and receive higher interest rates. Keep this in mind though, Trent from The Simple Dollar has mentioned that by keeping your money in high interest accounts, you are only holding the value of your money because of taxes (on your returns from interest) and inflation. To actually earn money, you will need to invest it.
Thus, you can keep some of those old bills for sentimental value, but put the rest in the bank. Don’t worry, in Canada, your money in the bank account is protected by the Canada Deposit Insurance Corporation if your financial institution is a CDIC member. If your bank fails or goes bankrupt, you are insured for up to $100,000. You can play a game of Monopoly with real cash, but I would rather deposit the stash into the bank.
When I was younger, I liked to collect things and I collected old bills. But guess what? I’m only saving one of each old bill and depositing the rest into the bank after this realization. From that money, I’ll be receiving about $5 per month on interest from ING Direct at the current rate. If you really want to know how much “Monopoly” money that picture includes, you can calculate it with the information provided in the previous sentence. But anyway, if you want the highest interest rate available in Canada, I would say that President’s Choice Financial is the best, but you’ll need a minimum balance of $1000. If you would like no minimum balance with a great rate, try ING Direct. Leave a comment with your email and I can refer you. We’ll both get $13 for doing that. Indeed, put your cash into the bank and you’ll have no worries about losing value.
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