I’ve been trying to read up on them but it’s just a lot.
So from what I’ve read, I understand a tax-free savings account is a savings account that you don’t have to pay a tax on. I mean the money you contribute would be taxed, but not the interest you make from it? But the interest rates for TFSAs tend to be very low so you don’t get much growth.
A high-interest savings account *is* taxable, but your interest rates are higher so your savings will grow faster, right? I’m not sure which is better in what situation, though.
Mutual funds on the other hand, I just don’t get. I read it’s not the same as buying stocks or shares, but in what way is it different? And in what situation would you want to open a mutual funds account over something like a TFSA or high-interest savings account? Or the other way around? And also, can you put money that isn’t technically yours in a mutual fund, like unused money from a student loan or something?