Savings Interest

Say you have a say in very basic, but higher interest savings account, and you win a lot of interest from pennies to $ 800, or that, if $ 20 000, by definition, is to speak . Does the government [of Canada] tax it? T-it ultimately not worth investing money because you have to pay more taxes?

Even if you pay tax at marginal rate, you will always get to keep more than half of the money, so I do not see how this could be true. I guess it could possibly affect your eligibility for guaranteed income supplements and GST credits, but they are geared towards people with low income, then why is intended to keep you there? If your investments are generating more interest, then it is a good thing.

If you had enough money to produce $ 20,000 in interest, you should have at least $ 200,000 (based on 10%, which is a very high interest rates right now). With this money, you'd probably see someone about your investments, and they advise you diversify your portfolio. Dividends and capital gains, for example, benefit from a more favorable tax treatment than interest.