Glossary
Every term this site uses, in plain language. In articles, tap or hover any highlighted term to see these definitions in place.
- CDIC (Canada Deposit Insurance Corporation)
- Federal insurance protecting bank deposits up to $100,000 per category per institution.
- CESG (Canada Education Savings Grant)
- The government grant that adds 20% to RESP contributions — up to $500/year, $7,200 per child.
- CRA (Canada Revenue Agency)
- Canada's tax authority — collects taxes, pays benefits, tracks account contribution room.
- ETF (Exchange-Traded Fund)
- A fund traded on a stock exchange holding a basket of hundreds or thousands of investments.
- FHSA (First Home Savings Account)
- A first-home account: tax-deductible contributions and tax-free withdrawals for a first home purchase.
- GIC (Guaranteed Investment Certificate)
- A term deposit: money locked for a fixed term at a guaranteed interest rate.
- HBP (Home Buyers' Plan)
- Lets first-time buyers borrow up to $60,000 from their own RRSP for a home, repaid over 15 years.
- HISA (High-Interest Savings Account)
- A savings account with a meaningfully higher interest rate — typically at online banks.
- MER (Management Expense Ratio)
- A fund's annual fee, deducted automatically from its value — 0.05–0.25% for index ETFs, ~2% for many bank mutual funds.
- PAC (Pre-Authorized Contribution)
- An automatic recurring transfer into an investment account — investing that runs without willpower.
- RESP (Registered Education Savings Plan)
- An education savings account where the government adds a 20% grant to your contributions.
- RRIF (Registered Retirement Income Fund)
- The payout version of an RRSP: mandatory minimum withdrawals fund retirement income.
- RRSP (Registered Retirement Savings Plan)
- A retirement account: contributions reduce your taxable income now; withdrawals are taxed later.
- SIN (Social Insurance Number)
- The nine-digit number needed to work, file taxes, and open financial accounts in Canada.
- TFSA (Tax-Free Savings Account)
- An account where investment growth and withdrawals are completely tax-free.