TORONTO, ONTARIO — (Marketwire) — 09/05/12 — According to the 2nd Annual BMO Rainy Day Survey released today, more Canadians feel prepared to handle a financial emergency in 2012 compared to last year; however, 25 per cent would not be able to last longer than three months on their contingency savings.
The annual survey, conducted by Pollara, asked Canadians how prepared they are in the event of a change in job status, change in financial situation or unforeseen financial emergency. The survey also asked what sources of contingency savings they had available to them, and how long they could weather challenging times.
The poll revealed:
“Being prepared for fluctuations in income or unexpected expenses requires an ongoing assessment of expenses and other spending habits,” said Su McVey, Vice President, BMO Bank of Montreal. “The general rule of thumb is to have an emergency fund set aside that is equal to three to six months of your income in a high-interest savings account, such as the BMO Smart Saver Account, to use for unexpected household expenses, along with avoiding the withdrawal of funds from other important investment plans, such as your Registered Retirement Savings Plan (RRSP).”
According to BMO Economics, the personal savings rate in Canada currently lies near historic lows at 2.9 per cent. By comparison, the rate climbed as high as 7 per cent during the height of the latest recession, and reached over 20 per cent in the early 1980s.
Storing the Rainy Day Fund
BMO offers the : a high interest savings account that allows for unlimited deposits and transfers into the account; one free self-serve debit transfer each month via online, ABM or phone; and free access to BMO MoneyLogic – an online personal financial management tool to help track everyday expenses.
Fall-Back Plan
The poll also asked what the fall back plan would be for Canadians who find themselves without a source of income or finances for six months, and revealed:
Financial Preparedness by Region and Gender
Financial Preparedness by Demographic – Age and Income
For more information about how BMO can help make saving more affordable, stop by a BMO branch today or click .
As part of its ongoing commitment to -Making Money Make Sense-, since 2009, BMO has introduced various tools to help Canadians effectively manage of their personal finances, including , , , , and .
The Pollara online survey was completed between August 2 and August 6, 2012, with a sample of 1000 Canadians. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at July 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
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(416) 867-3996
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(514) 877-8224
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