Do you want to invest money to reach a short-term financial goal? Whether you’re saving for a vacation in a few months or a home deposit in a couple of years, there are several options available in Canada.
This guide looks at different short-term investment options depending on your investing timeframe and how much risk you’re happy to take on. For the most part, we’ve excluded high-risk options like day trading and instead focused on investments at the lower end of the risk spectrum.
What are short-term investments?
Short-term investments are investments that are held for 2 years or less. The goal of any investor is to achieve maximum returns with minimal risk. But the shorter your timeframe, the harder it is to find this balance.
As a general rule, low-risk investments provide lower returns, while high-risk investments offer the potential for higher returns (but your returns are far from guaranteed).
Types of short-term investments
Check out the table below for a quick summary of the features of popular short-term investments.
Savings accounts
GICs
ETFs
Bonds
Money market funds
Cryptocurrency staking
Minimum deposit
Starting from $0
Varies, but commonly $0 – $1,000
No minimum
Varies between government bonds, corporate bonds and bond ETFs
Typically from $100 to $5,000
No investment minimum, depending on the exchange
Access to funds
Any time
Non-redeemable GICs: End of term. Redeemable GICs: Early (but with lower returns).
At any time
At any time, but some bonds are less liquid than others
At any time
Depending on the cryptocurrency, there may be a lock-up period
Fees
Varies, but typically $0
Typically no fees
Management expense ratios: Usually 0.05% – 0.90%. Possible trading platform commission fees.
Your trading platform or broker may charge a commission
Management expense ratios commonly range from 0.10% to 1.50%
From approx. 0% to 35% depending on the broker and the exchange
Are funds insured?
Yes
Yes
Yes
No
No
No
Level of risk
Low
Low
Ranges from low to high depending on the ETF
Low
Low
High
Volatility
Low
Low
Low to high depending on the ETF
Low
Low
High
Short-term investment option 1: Savings accounts
If you want a short-term investment with zero risk, you can put your money to work for you in a high-interest savings account. This is a safe investment option and easily accessible to anyone. And if you open an account with a financial institution that is a Canada Deposit Insurance Corporation (CDIC) member, up to $100,000 you deposit will be covered by insurance.
The great thing about savings accounts, aside from their high interest rates, is that you can add or withdraw funds at any time. This gives you ultimate flexibility about how you manage your money, but the downside is that banks can also change rates at any time.
Alternatively, you might like to invest in a tax-free savings account (TFSA). High-interest TFSAs offer many of the features of regular savings accounts, but with the added bonus that you pay no tax on the income you earn. However, contribution limits apply.
What type of returns can you get with a savings account in Canada?
Right now, the highest promotional rate for high interest savings accounts in Canada is around 5%. But that promo rate will only last a few months.
The highest ongoing rates for savings accounts range around 0.01% – 1% from Big Banks and 0.3% – 3% from digital banks and fintechs.
Some of the best savings account promo rates available now:
Scotiabank MomentumPLUS Savings Account: 5% for the first 3 months if you select a 360-day Premium Period and also have an Ultimate Package chequing account, then between 0.55% and 1.15% ongoing (terms and conditions apply).
CIBC eAdvantage Savings Account 4.9% for the first 3 months, then 0.25% – 1% ongoing depending on your account balance.
BMO Savings Amplifier Account:4.75% until August 31, 2025 when you also open a BMO Performance Chequing Account, then 0.8%.
RBC High Interest eSavings: 4.7% for the first 3 months, then 0.75% ongoing.
Some of the best savings account ongoing rates available now:
PC Financial PC Money Account: 3.1%.
WealthONE Bank of Canada High Interest Savings Account: 3.1%.
EQ Bank Notice Savings Account: 3% if you give 30 days’ notice before making a withdrawal, or 2.85% if you give 10 days’ notice before making a withdrawal.
How to decide if savings accounts are the best short-term investments for you
A savings account might be the best short-term investment for you if one or more of the following apply:
You want a zero-risk investment.
You want to be able to deposit or withdraw money at any time.
You have a specific financial goal in mind or you just want to save for a rainy day.
If that sounds like you, compare high-interest savings accounts now.
Guaranteed investment certificates are another investment option with very low risk. Most GICs allow you to earn a guaranteed rate of interest on your money, but you need to agree to deposit your funds for a set period.
GIC terms range anywhere from 1 month to 10 years, and with most GICs you’ll pay a penalty if you want to withdraw your money early. There are redeemable GICs that allow you to withdraw before the term ends, but they come with lower interest rates.
The other benefit of GICs is that they’re covered by CDIC insurance, giving extra peace of mind to investors.
How do GIC returns work?
As an example of how GIC returns work, EQ Bank GICs let you invest anywhere from $100 to $100,000 for terms ranging from 3 months to 10 years. The rate you get varies depending on the term length you select.
How to decide if GICs are the right short-term investments for you
GICs might be the right choice for you if:
You want a higher ongoing interest rate than a savings account.
You like the security of a fixed rate and a guaranteed return (though there are variable-rate GICs available).
You’re looking for a low-risk investment.
You don’t mind locking your money away for a fixed period of time.
Quick summary: GIC short-term investments
Where to buy: Banks and alternative financial institutions
Risk level: Low
Liquidity: Non-redeemable GICs are not liquid
Minimum: Commonly $100 – $1,000
Fees: Typically no fees
Short-term investment option 3: Short-term ETFs
Exchange-traded funds (ETFs) are investment portfolios that you can trade on an exchange just like stocks. But when you invest in a single ETF, you invest in multiple stocks at the same time.
Traditional ETFs are index funds that track market indices. They hold hundreds of stocks that make up major markets, such as the S&P 500, and they make it much quicker and easier to create a diversified portfolio than investing in individual stocks. But these days they can hold a wide range of assets, including bonds, property and even cryptocurrencies.
As a result, ETFs can range from low risk to very high risk and can be suitable for short or very long-term investment timeframes. Fixed income ETFs, which invest in a variety of bonds, are an option worth considering if you’re searching for a low-risk investment.
And when you choose an ETF for the short-term, make sure you check its recommended timeframe and risk level before deciding if it’s right for you.
Examples of short-term ETF investments
Searching for short-term ETFs for your portfolio? Check out the table below for a selection of funds worth considering.
How to decide if ETFs are the best short-term investment for you
ETFs might be the best short-term investments for you if:
You’re a beginner investor.
You want exposure to a diversified portfolio of securities.
You only have a small amount to invest (you can get started with as little as $1).
Invest in ETFs through an online broker
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A bond is a loan made by investors to borrowers. When you invest in a bond, you provide a loan to a company or the government. In return they pay you regular interest, then repay the full loan amount when the bond matures.
The annual interest rate you receive is called the coupon rate, while the return you get if you hold a bond to maturity is its yield. The yield you’ll receive will vary depending on when the bond reaches maturity and how much risk you’re taking on.
While Canadian government bonds are very safe, some corporate bonds have a higher level of risk. So if you invest in a corporate bond and that company collapses, you risk losing your money. But the higher the level of risk, the higher the interest rate you can get, and rates available will depend on the bond issuer’s credit rating.
The best bond for you depends on your financial goals. Look for a bond that offers the right balance of a maturity date that suits your investment time frame, a high coupon rate and yield, and a high credit rating.
The average yield for 1 to 3-year Government of Canada marketable bonds has been around 2.70% historically. We’ve also seen average treasury bill yields around:
2.67% for 1-month T-bills
2.60% for 3-month T-bills
2.56% for 6-month T-bills
2.55% for 1-year T-bills
Alternatively, you can gain exposure to bonds by investing in bond ETFs or mutual funds.
How to decide if bonds are the best short-term investment for you
Bonds might be the best short-term investment for you if:
You want a low-risk investment that can provide steady income.
You want to avoid stock market volatility.
Quick summary: Bond short-term investments
Where to buy: Online brokerages and financial advisors
Risk level: Low (Canadian government bonds, some corporate bonds) to high (some corporate bonds)
Liquidity: High
Minimum: Usually $5,000, but the minimum is much lower for mutual funds and there’s no minimum investment for ETFs
Fees: Commissions vary depending on the broker you choose
A money market fund is a mutual fund or ETF that pools investors’ money together to invest in short-term, low-risk securities. These include government bonds, treasury bills and short-term corporate debt.
Due to their low level of risk, money market funds are seen as a safe place to park your cash in times of market volatility.
They also provide steady investment income with minimal volatility, and because the investments they hold have short maturity times, they’re often well suited to short-term investors.
And if you need fast access to your money, you can buy or sell these funds whenever you need.
Check out the table below for details of some popular money market funds you might like to research further.
Name of fund
Type of fund
Management expense ratio*
1-year performance*
BMO Money Market Fund ETF
ETF
0.13%
+4.14%
iShares Premium Money Market ETF
ETF
0.13%
+4.00%
Ninepoint Cash Management Fund
Mutual fund
0.08%
+4.04%
Manulife Money Market Fund
Mutual fund
0.48%
+4.00%
Global X 0–3 Month T-Bill ETF
ETF
0.11%
+3.85%
*Data last verified on April 30, 2025
How to decide if money market funds are the best short-term investment for you
Money market funds might be the best short-term investment for you if one or more of the following applies:
You want a low-risk investment.
You want the potential for slightly higher returns than a savings account.
You want access to your money at any time.
You want to avoid market volatility.
Quick summary: Money market fund short-term investments
Where to buy: Online brokerage accounts
Risk level: Low
Liquidity: High
Minimum: Generally anywhere from $100 to $5,000
Fees: Management expense ratios commonly range from 0.10% to 1.50%
Cryptocurrencies are notoriously volatile, and they’re not really an asset class you’d consider if you’re looking for low-risk investments. But there are some lower-risk crypto products available that have similar features to bonds or savings accounts — albeit without loss protection and government-backing.
For example, staking allows you to earn passive income by locking up certain cryptocurrencies, like Ethereum, Solana or Cardano, to help secure their blockchain networks. In return you receive staking rewards, which are similar to interest payments from a GIC or savings account.
In some cases, you’ll be required to lock up your crypto for a fixed period of time. However, many platforms now offer flexible or liquid staking, meaning you can enjoy faster access to your funds.
Cryptocurrency staking risks
While staking works quite similarly to high-interest savings accounts, it comes with a much higher level of risk.
You don’t have the protection of CDIC insurance, cryptocurrencies can be highly volatile, and the success of your investment is dependent on the security and stability of the blockchain or platform you’re using. So if the platform gets hacked, the network fails or the token you’re staking loses value, you could lose some or all of your investment.
Some of the most popular cryptocurrencies to stake:
Here are the biggest cryptocurrencies (by market cap) that can be staked, as of 2025:
Risk level: High (depends on the exchange and coin or token)
Liquidity: Low to high
Minimum: No investment minimums in many cases, but it depends on the exchange you use
Fees: Starting from 0% depending on the broker and the exchange
Why invest short-term?
There are lots of reasons why you might want to invest for just a few months or a year or two.
Maybe you’ve got a short-term savings goal in mind — a down payment for a new car or a mortgage, for example, or maybe an overseas vacation. And rather than just having your cash sitting in a chequing account losing value (thanks, inflation), it makes sense to invest it and earn some extra income.
But because you have plans to use your money in the near future, high-risk investments are off the table. Instead, the safest option is to choose an investment with low or zero risk.
Alternatively, maybe you just want to save an emergency fund for a rainy day.
Or maybe you’re looking for a safe haven where you can park your cash during times of market volatility, then put it into other high-risk/high-reward investments when conditions turn in your favour. If that’s the case, you’ll need a short-term investment that allows fast access to your money whenever you need it.
How do you choose the best short-term investment for you?
Short-term investing is not just about chasing the highest rate of return — it’s about finding the balance between a suitable level of risk, flexible access to funds and a competitive return that suits your needs.
Start by asking yourself: How soon will I need the money? If you’re saving for a big purchase some time in the next year, look for something low-risk and highly liquid (meaning you can easily withdraw your funds whenever you need).
A short-term government bond or a high-interest savings account with a great introductory rate could be a good fit.
But if you’re comfortable locking your money away for longer, you might get a slightly higher return from corporate bonds or fixed income ETFs.
The downside is that the higher the return you chase, the more risk or restrictions involved. This could mean market volatility, losing money, or not being able to access your money until the investment period ends.
How to compare short-term investments options in Canada
Consider these factors to find the best short-term investment for you.
Your financial goal
Start by forming a clear idea of what you want to achieve with your investment. How much money do you want or need? How long do you have to reach your goal? The goal you set will have a huge impact on the type of investment you choose.
Your appetite for risk
What is your risk tolerance? Are you willing to take on a higher level of risk for the chance of a higher return, while also realizing that you could lose money? Or would you feel more comfortable knowing that you’re set to receive a steady return with next to no risk of losing any money?
Potential returns
Compare the sort of yield you can expect from different investment types. With some investments like GICs, the return is guaranteed. But with other investments like ETFs and mutual funds, past performance is no indication of future results.
Liquidity and accessibility
If you’re saving for an emergency or just investing for the short-term until a better long-term opportunity becomes available, you’ll want fast access to your money when you need it. That’s where investments like savings accounts can be a good choice, while ETFs also have high liquidity so can usually be quickly sold when you need access to your funds.
But if you choose a non-redeemable GIC, you can’t withdraw your money before the end of the investment period without penalty.
Volatility
Check what sort of volatility you can expect from each investment. Savings accounts and GICs are safe and steady, while cryptocurrencies are well known for their volatility. And if you’re investing in ETFs, volatility levels vary depending on the objectives and risk level of the fund.
Remember, if you’re investing for the short term and the market moves against you, there may not be enough time for it to turn in your favour and for you to recoup your losses. That’s why it’s generally safer to consider less volatile investments at the lower risk end of the spectrum.
Cost
You’ll also need to factor the cost of investing into your calculations. For example, will you be charged brokerage fees to buy or sell an investment fund? If you have a savings account, will you be charged withdrawal fees or maybe transaction fees if you exceed your monthly transaction limit?
Remember to take fees into account when calculating the return you’ll get from your investment.
What's the best way to grow your wealth in under 2 years?
"If you’re risk-averse and happy with returns of circa 5% p.a., I’d suggest a high-yield cash account. If you’re looking for returns of over 10% p.a. I’d suggest an ETF or managed fund which is diversified across geography, sector and asset class.
If you’re looking for performance that may shoot the lights out, high-risk investments such as crypto could be for you; you can invest in a single token or buy a basket of digital tokens. Or, consider investing in gold bullion which enjoyed a 25.5% return in 2024 (World Gold Council), and is also the ‘go to’ investment during times of extreme volatility."
Pascale Helyar-Moray
Superannuation expert
Bottom line
If you’re investing for a short-term financial goal, a secure, low-risk investment is the safest approach. The good news is that there are several investment options to choose from based on your goals, how much you have to invest and your appetite for risk. Compare a range of asset and account types to find the best short-term investments in Canada for you.
Frequently asked questions about the best short-term investments in Canada
If you have $10,000 you want to invest for 2 years or less, you could consider a high interest savings account, GICs, government bonds, money market funds or cash and bond ETFs.
The shortest GIC term available from most Canadian financial institutions is 30 days. At the other end of the spectrum, long-term GICs have terms of 5, 7 or 10 years.
The best short-term investment right now depends on factors such as your investment time frame and your appetite for risk. For example, if you want a low-risk investment that allows you to access your funds quickly whenever you need, a high-interest savings account could be a good choice.
You could choose a non-redeemable GIC if you want a higher interest rate, but you won't be able to access your funds before the term expires without paying a penalty.
An investment that can turn 10K into 20K will deliver a return of 100%, which is extremely high. The only investment products that can offer such a high return quickly are also highly risky. These include penny stocks and cryptocurrencies, but you'll need to make sure you're fully aware of the risks involved before investing.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
Tim's expertise
Tim has written 452 Finder guides across topics including:
Bonds are fixed-income assets that earn interest. But bonds may underperform other asset classes in the long run.
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