Savings and prize-linked savings glossary

Bank of Canada policy rate

The central bank's target for the overnight rate, which influences the interest rates banks charge and pay across the country. It was 2.25% as of June 2026, held since April 29, 2026, per the Bank of Canada.

CDIC

The Canada Deposit Insurance Corporation, a federal Crown corporation that automatically insures eligible deposits at member banks up to $100,000 per insured category, per institution, if a member fails. Lodavo is not a bank and holds no deposits.

Compound interest

Interest earned on both your original principal and the interest you have already earned, so savings grow faster the longer they sit. Lodavo itself pays no interest. Your money keeps earning whatever your own bank pays.

Direct deposit

Having pay, a refund or government benefits paid straight into your bank account electronically instead of by cheque. Some accounts pay a higher rate or waive fees when you set up direct deposit.

Emergency fund

Money set aside for unexpected costs like a job loss, a car repair or a medical bill. A common guideline is three to six months of essential expenses, though that's a rule of thumb, not a fixed requirement.

HISA

High-Interest Savings Account, a deposit account that pays more interest than a typical chequing account. Rates vary by provider and promotional rates are temporary, so check the current rate and its end date before opening one.

Interac e-Transfer

A widely used Canadian way to send money between bank accounts using an email address or phone number. It's how Lodavo pays out prizes to winners.

No purchase necessary

A free alternate method of entry, so you never have to buy anything to enter or win. Together with the skill-testing question, it's what keeps a Canadian prize draw legal. Lodavo's full terms are at the contest rules.

Open banking

A framework, called Consumer-Driven Banking in Canada, that lets you securely share your banking data with apps you choose without handing over your password. Canada's framework became law in March 2026 and is still being rolled out, so check its current status.

Plaid

The secure data network many Canadian apps use to connect a bank account, covering over 99% of deposit accounts in Canada. You log in through your bank, the app gets scoped access, and you never share your bank password with the app. Lodavo connects through Plaid, explained on the supported banks page.

Prize-linked savings

Saving your own money plus a free chance to win a prize, where your principal is never spent or put at risk to enter. Your balance stays yours. Lodavo is Canada's first prize-linked savings app.

Provably fair

A method that lets anyone independently verify a draw was not tampered with, using published cryptographic proof rather than asking you to take the operator's word for it. See how Lodavo's draws are provably fair.

Read-only access

Permission to view account information, such as a savings balance, but not to move, withdraw, transfer or charge money. This is how Lodavo connects to your bank, so it can count what you save without ever touching it.

Round-up saving

Automatically rounding each card purchase up to the next dollar and setting aside the spare change. It is a low-effort way to build savings a few cents at a time.

Skill-testing question

A simple math question a winner must answer correctly to claim a prize. It's one of the two things that legally make a Canadian prize draw a contest rather than a lottery.

TFSA

Tax-Free Savings Account, a registered Canadian account where investment growth and withdrawals are tax-free. The annual contribution limit is $7,000 for 2026 (unused room carries forward), per the Canada Revenue Agency.

Canada’s first prize-linked savings app

Turn your savings into chances to win

Lodavo is free. Connect your bank, keep saving where you already do, and earn tickets into every weekly draw.

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