What is the best method of saving funds for your baby??

[chico1516]

SO i have a 12 month old and i have started an RESP for her. However, i didnt want to but all of her "eggs in one basket", and was wondering if you guys know of the best savings account out there now with the best interest rate?? And is this the best way to go in terms of an alternative method to save up for her??

[pitz]

Once you've maximized whatever matches are available in RESPs, you should look towards your overall portfolio, to determine where cash would be best placed.

If you have a mortgage, it is usually better to pay down the mortgage, than it is to invest in interest-bearing investments.

A few extra mortgage payments over the next few years can easily knock 5+ years off of your amortization, and hence, the mortgage payments you would be making when the kids are in university, instead, can be directed towards them.

If you insist on investing while you have a mortgage, then I'd implore you to consider a minor version of the Smith Manouevre, as discussed in the Personal Finance forum.

If you have no mortgage, and are debt-free, then I'd suggest a TD eFunds account, and/or obtaining suitable (and cost-conscientous) professional advice.