Your All-in-One Canadian Financial Dictionary
Stocks
Investments that represent ownership in a company. Their value can rise or fall based on how the company performs.
Tax-deferred
You don’t pay tax right away. Instead, taxes are delayed until you withdraw the money, common with accounts like RRSP and RRIF
Tax-Free Savings Account (TFSA)
A TFSA is a flexible account that lets your money grow tax-free. You can use it for saving, investing, or long-term goals, and any money you earn inside the account—like interest, dividends, or investment gains is generally not taxed when you withdraw it.
Term
The length of time your loan or investment agreement lasts, like a 5-year mortgage term or a 1-year GIC.
Term life insurance
Life insurance that covers you for a set period, like 10, 20, or 30 years. If something happens during that time, your family gets a payout. If not, the coverage ends.
Transit number
A 5-digit number that identifies your bank branch. It’s used along with your account number for things like direct deposits and transfers.
Travel insurance
Coverage that protects you from unexpected costs when travelling, like medical emergencies, trip cancellations, or lost baggage.
Trip interruption coverage
A type of travel insurance that helps cover costs if your trip is cut short or disrupted.
Universal life insurance
Provides lifelong coverage with flexible premiums and an investment component. You can adjust your payments and how the cash value is invested.
Unsecured line of credit
A line of credit that isn’t backed by an asset (like a home). Because there’s more risk for the lender, interest rates are usually higher.