Short Term Cash Returns
From finiki
Outside of a savings or chequing account at a bank or credit union, there are a variety of ways for investors to earn higher rates of interest on money they may need to draw on in the short term. They include Guaranteed Investment Certificates (GICs) offered by the banks, Guaranteed Interest Accounts (GIAs) offered by life insurance companies and money market mutual funds.
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GICs and GIAs
Money Market Funds (MMFs)
- Main article: Money Market Funds
Current Yields courtesy of The Fund Library.
Current Yields courtesy of The Globe and Mail.
Current Savings Account Yields
Treasury Bills
Treasury bills, usually called "T-bills", are debt instruments issued by the Government of Canada with maturities of up to 360 days. They are sold at a discount to face value (i.e., at less than 100 cents to the dollar) and pay full face value on maturity. The difference between the face value and the purchase price represents the interest payment and is fully taxable.
Since T-Bills are government-issued, no CDIC guarantee is necessary. They are suitable for parking large amounts of cash for a short time, with full government guarantees.
