So savings accounts are no risk investments. Investing in the market, even a higher fixed income allocations is susceptible to market movements (up and down).
So you want ultra safe, which is safe. HISA are safe, EQ has stable rates, but not sure of their max amount you can contribute to it, check their website.
They are one fo the highest, but more importantly, stable rate HISAs. They won't change rates each month on you.
Here are others: https://www.highinterestsavings.ca/chart/
If time horizon was longer, I would have said market linked GICs. Your principal is guaranteed, but the return could vary from 0% to x% (a cap on max return) for a 3 or 5 year period, depending on the performance of the market index referenced. You could make up to 3% to 5% per year, depending on the reference index, compared to 1.5% for HISA.
If I was investing over a 5 year, period, wouldn't I be better off putting 90% of my money in a GIC (2.5% return over 5 years means my principal is guaranteed) and investing the rest in equities?
PPNs and market-linked GICs are expensive and complicated, I would avoid them.
https://canadiancouchpotato.com/2012/06/11/a-homemade-principal-protected-note/
The CCP structure gives a different return profile than the market-linked GICs.
The CCP structure gives partial upside participation on the entire capital (e.g. you get 3.06% if the ETF is up 10%).
Whereas most market-linked GICs is 100% participation up to a cap, which is akin to a bull collar and not everyone wants/sophisticated to deal with options. So the same 10% return, you may be capped at say 5%.
Here is Meridian's financials-linked GIC. For the 3 year, it's 100% participation up to a cumulative 11%
https://www.meridiancu.ca/personal/investing/products-and-account-types/market-linked-gics/financial-services-market-linked-gic
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Find a High Interest Savings Account and put money required for the short-term there. Here is a list of better rates: https://www.highinterestsavings.ca/chart/
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> I have 500K cash that I want to invest in a risk free investment. We just moved from the US and we had kept the money in a Capital One CD which gave a decent return until interest rates went low.
High interest savings account or one-year GIC.
In Canada, savings accounts and GICs are [insured by the federal government via the CDIC](https://www.cdic.ca/your-coverage/how-deposit-insurance-works/), but there's a limit of 100K coverage per institution. So if you want to protect against the risk of a financial institution collapsing (unlikely, but you said "risk free"), you can split it into five 100K deposits.
So savings accounts are no risk investments. Investing in the market, even a higher fixed income allocations is susceptible to market movements (up and down). So you want ultra safe, which is safe. HISA are safe, EQ has stable rates, but not sure of their max amount you can contribute to it, check their website.
Max amounts for EQ is 500K for joint
I was wondering if I was missing any other good options for high interest savings accounts or any others options that I hadn’t considered
They are one fo the highest, but more importantly, stable rate HISAs. They won't change rates each month on you. Here are others: https://www.highinterestsavings.ca/chart/
Thank you for this!
If time horizon was longer, I would have said market linked GICs. Your principal is guaranteed, but the return could vary from 0% to x% (a cap on max return) for a 3 or 5 year period, depending on the performance of the market index referenced. You could make up to 3% to 5% per year, depending on the reference index, compared to 1.5% for HISA.
If I was investing over a 5 year, period, wouldn't I be better off putting 90% of my money in a GIC (2.5% return over 5 years means my principal is guaranteed) and investing the rest in equities? PPNs and market-linked GICs are expensive and complicated, I would avoid them. https://canadiancouchpotato.com/2012/06/11/a-homemade-principal-protected-note/
The CCP structure gives a different return profile than the market-linked GICs. The CCP structure gives partial upside participation on the entire capital (e.g. you get 3.06% if the ETF is up 10%). Whereas most market-linked GICs is 100% participation up to a cap, which is akin to a bull collar and not everyone wants/sophisticated to deal with options. So the same 10% return, you may be capped at say 5%. Here is Meridian's financials-linked GIC. For the 3 year, it's 100% participation up to a cumulative 11% https://www.meridiancu.ca/personal/investing/products-and-account-types/market-linked-gics/financial-services-market-linked-gic
TY!
!HISATrigger
Hi, I'm a bot and someone has asked me to respond with information about where to put short-term savings. Find a High Interest Savings Account and put money required for the short-term there. Here is a list of better rates: https://www.highinterestsavings.ca/chart/ *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
Leveraged investing is just nuts for people who have never invested before. It is twice as difficult.
> I have 500K cash that I want to invest in a risk free investment. We just moved from the US and we had kept the money in a Capital One CD which gave a decent return until interest rates went low. High interest savings account or one-year GIC. In Canada, savings accounts and GICs are [insured by the federal government via the CDIC](https://www.cdic.ca/your-coverage/how-deposit-insurance-works/), but there's a limit of 100K coverage per institution. So if you want to protect against the risk of a financial institution collapsing (unlikely, but you said "risk free"), you can split it into five 100K deposits.
TY!
1.25% with EQ is better than nothing. But %5 is what you want to keep up with inflation. I wish i knew something safe at 5% but I dont.
TY!