Saving for a large purchase
Saving for a wedding? Maybe a new car, a boat or another large purchase? Whatever your savings goal, we have the right accounts and mix of investment types. Let’s make a plan to get you there.
Recommended investing options
When saving for a large purchase, it’s important to have the right investments in the most appropriate accounts.
Investment accounts
To make sure you’re on the right track, choose an account that is well suited to help you reach your savings goal. Below are some great options for saving for a large purchase.
Tax-Free Savings Accounts (TFSAs)
Your money grows tax-free and can be withdrawn at any time without consequences – such as when you need money for a large purchase.
Great for: Anyone looking for a flexible way to save while also enjoying tax benefits. Great for all types of short- and long-term savings.
Cash Account
Save without deposit limits through this non-registered account and easily access your money anytime to make your large purchase.
Great for: Anyone who maxes out their TFSA and would like to have a liquid account.
First Home Savings Account (FHSA)
Your money can grow tax-free in FHSA towards the purchase of your first home. Plus, you get new contribution room each year, and your contributions are tax-deductible, making it the ideal way to save.
Great for: First-time home buyers looking for a tax-free savings account that can hold various investment types.
Investment types
No need to feel overwhelmed. Below are two great investment options to help you save for a large purchase.
Guaranteed Investment Certificates (GIC)
You choose how long you’d like to save your money for, from just a few months to a few years. GICs are safe and secure – your principal is protected, and depending on the product you choose, you can earn interest during or at the end of your term.
Typical investing horizon: Short- to medium-term
Great for: Anyone who wants to save for a specific amount of time.
Exchange Traded Funds (ETFs)
ETFs are a bucket of securities made up of equities, fixed income and other assets – great for a diversified portfolio.
Typical investing horizon: Medium- to long-term
Great for: Anyone who wants a low-fee investing option.
Did you know?
Whichever account you choose for saving for a down payment can be accessed online or through the BMO Mobile Banking app, any time.
Tips and hints
Guide to saving for a large purchase.
- Open a separate account from your existing chequing or savings accounts for each large purchase.
- Develop --or revisit-- a budget and include regular savings contributions toward your large purchase.
- Take advantage of a Continuous Savings Plan to help you reach your goal faster.
- While saving, research your intended large purchase to find the best deal.
- Don’t lose sight of your goal: Start small and watch your savings grow over time.
Helpful tools
Unsure about the right accounts or investment types? Answer a few quick questions and we’ll match you with some investing options.
Try our simple Savings Calculator to find out how much you could save with a CSP (Continuous Savings Plan).
Find out how much you could save with a TFSA account.
Automatic savings contributions make investing easy and help you reach your goals faster. Learn more about our Continuous Savings Plans.
Articles you might find useful
Don’t let financial intimidation stop you from investing
How to make personal finance more manageable.
5 investing tips for beginners
Start investing on the right foot with these tips.
Getting started with ETFs
DIY investing has never been easier or more flexible – learn how ETFs can work for you.
Ways to contact us
There are various ways to get in touch. Choose your preferred method.
Investing with a professional
Online Investing
