Never Keep Too Much Money in the Wrong Bank Account After 65 — It Could Affect Your Canadian Pension

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Never Keep Too Much Money in the Wrong Bank Account After 65 — It Could Affect Your Canadian Pension. Many seniors save carefully, but few realize how savings interact with government support like the Guaranteed Income Supplement, or GIS. Having a large bank balance does not automatically disqualify you from Old Age Security or GIS. These benefits depend on your income, not simply on how much money sits in your account. Imagine a senior with one hundred thousand dollars in a regular savings account earning interest. That interest counts as taxable income and could reduce their GIS payments depending on personal circumstances. Eligible deposits at CDIC member banks are generally insured up to one hundred thousand dollars per category, per institution, including principal and interest. Check how your savings are distributed to confirm coverage. Many chequing accounts pay little interest, so keep only what covers bills and emergencies. Consider a Tax-Free Savings Account, where income and withdrawals generally do not affect GIS or OAS. Before moving money into a TFSA, check your contribution room with the CRA. Avoid hiding cash at home, trusting unsolicited callers, or transferring savings into someone else's account. Review your statements, tax return, and TFSA room, then confirm with your bank or Service Canada. This video offers general education only, not personalized financial or tax advice.