Two-thirds of Canadian millennials surveyed by Haventree Bank say they save or invest at least once a month, and 42% put money away with every paycheque. The biggest obstacle to saving more is what’s left after expenses.
Haventree’s Millennial Money Report draws on responses from 1,000 Angus Reid Forum members aged 30 to 45 across Canada. In the August 18–24 survey, 55% cited a lack of disposable income as their main barrier to saving more. Debt was a distant second at 16%. One in four said covering current costs put long-term planning out of reach.
“When the amounts are modest, every dollar needs to work harder, and that influences what we’re building at Haventree,” said Fern Glowinsky, the bank’s president and CEO.
Where millennials keep those dollars matters to a bank competing for deposits. Some 58% of respondents hold most of their long-term savings in a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP). And 43% already divide their savings among multiple financial institutions, giving a newer digital bank a chance to win part of a customer’s savings without asking them to switch banks.
Toronto-based Haventree, long known for mortgages distributed through brokers, launched its digital bank in July with an everyday account and guaranteed investment certificates. Customers can now open TFSAs, RRSPs and first home savings accounts through the platform, with a choice of a savings account or a registered GIC.
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