Quote:
Originally Posted by Cecil Terwilliger
Depends. Inflation in AB is only at about 1.1-1.3% right now. Pretty much every FI has some sort of HISA (or comparable product) paying about that much.
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Unless your HISA is in a TFSA, then you're paying income tax on the interest income and thus losing to inflation. That's also inflation the way Stats Can / BOC calculates it, which includes a multitude of BS adjustments such as hedonic adjustments and substitute products. Inflation is more of a 'cost of survival' index than a true measure of what it really costs to maintain your standard of living. Ask the Financial advisors on CP here, one of the most common mistakes in managing money is people thinking they're being prudent by maxing their TFSA room using a HISA.