Save, Earn, Repeat.

I’ve noticed a trend among my friends lately. Even five years ago, the trend was entirely different so it’s interesting to note when they change over time in my social circle. Just five years ago, my peers and I were having our second or third kids, establishing our family units so to speak. Mortgages, a new minivan to carry that family, and researching family vacations were the norm. Savings? An admirable goal, but there was so much else to concentrate on.

Now, a chat over coffee with my girlfriends can turn to savings, RESP’s, and interest rates where five years ago none of those topics were on the table. Is it a sign of the times or a reflection of our place in life, this thirty-something adventure we’re on? I think it’s really a bit of both.

According to the BMO Household Savings Report, more Canadians are making saving a habit by using a fixed savings plan that includes monthly contributions. In fact, one-in-three Canadians (31 per cent) have a fixed savings plan in place heading into 2015, a year-over-year increase of 19 per cent.

However, the report also found that 19 per cent did not save anything in 2014. Also, 40 per cent do not feel they are saving enough to meet their goals for the coming year, with one in three (31 per cent) citing their lack of a plan as a barrier.

Furthermore, according to Statistics Canada, Canada’s household saving rate hit a five-year low of 3.6 per cent in the fourth quarter of 2014. Over the last 10 years, the average household savings rate is 4 per cent, down from 7.9 per cent during the 1990s.

So what does this information mean? It’s clear that Canadians know we need to save, we have goals to do so, but we’re lacking focus and a clear plan to make that happen. I’ve just discovered something new from BMO Bank of Montreal that could very well be a game changer for many.

BMO Bank of Montreal recently announced the launch of a first-of-its-kind savings account, designed to help Canadians save more by rewarding them with bonus interest for making regular monthly savings contributions.

The BMO Savings Builder Account offers Canadians an industry-leading rate of 1.3 per cent when they increase their savings by $200 or more each month. Customers can also take advantage of an additional introductory offer where they can receive 2.5 per cent on their savings until June 30, 2015.

“While Canadians have been taking steps to address aspects of their personal finances – such as paying down debt – the most recent industry data show the household savings rate in Canada hit a five-year low in the fourth quarter of 2014,” said Ernie Johannson, Head of North American Retail Payments and Personal Banking Canada, BMO Financial Group. “With this in mind, we have introduced the Savings Builder Account to encourage Canadians to use the power of savings and earn more when you save on a regular basis. Even a little goes a long way, and it’s never too early to get into the habit. Our message is simple: save, earn, repeat.”

Admittedly, $200 or more can be a big chunk in many family’s budgets, but I think it’s attainable for many of us, our family included. In our case, I know I can free up $200 by cutting back on the amount of restaurant meals we have in any given month. I like having a solid dollar amount on that goal, and knowing that I’ll be rewarded with a higher interest rate because I’ve made it work within our budget certainly makes me feel better about missing out on that restaurant meal or two.

For more information on the BMO Savings Builder Account, please click here.