{"id":1059066,"date":"2025-05-11T17:03:52","date_gmt":"2025-05-11T21:03:52","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=1059066"},"modified":"2026-04-01T12:52:37","modified_gmt":"2026-04-01T16:52:37","slug":"best-short-term-investments-canada","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/investments\/best-short-term-investments-canada","title":{"rendered":"Best short-term investments in Canada"},"content":{"rendered":"Do you want to invest money to reach a short-term financial goal? Whether you\u2019re 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\u2019re happy to take on. For the most part, we\u2019ve excluded high-risk options like day trading and instead focused on investments at the lower end of the risk spectrum.<\/p>

What are short-term investments?<\/h3>

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.<\/p>

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).<\/p>

Types of short-term investments<\/h3>

Check out the table below for a quick summary of the features of popular short-term investments.<\/p>
<\/th>Savings accounts<\/th>GICs<\/th>ETFs<\/th>Bonds<\/th>Money market funds<\/th>Cryptocurrency staking<\/th><\/tr><\/thead>
Minimum deposit<\/strong><\/td>Starting from $0<\/td>Varies, but commonly $0 \u2013 $1,000<\/td>No minimum<\/td>Varies between government bonds, corporate bonds and bond ETFs<\/td>Typically from $100 to $5,000<\/td>No investment minimum, depending on the exchange<\/td><\/tr>
Access to funds<\/strong><\/td>Any time<\/td>Non-redeemable GICs: End of term. Redeemable GICs: Early (but with lower returns).<\/td>At any time<\/td>At any time, but some bonds are less liquid than others<\/td>At any time<\/td>Depending on the cryptocurrency, there may be a lock-up period<\/td><\/tr>
Fees<\/strong><\/td>Varies, but typically $0<\/td>Typically no fees<\/td>Management expense ratios: Usually 0.05% \u2013 0.90%. Possible trading platform commission fees.<\/td>Your trading platform or broker may charge a commission<\/td>Management expense ratios commonly range from 0.10% to 1.50%<\/td>From approx. 0% to 35% depending on the broker and the exchange<\/td><\/tr>
Are funds insured?<\/strong><\/td>Yes<\/td>Yes<\/td>Yes<\/td>No<\/td>No<\/td>No<\/td><\/tr>
Level of risk<\/strong><\/td>Low<\/td>Low<\/td>Ranges from low to high depending on the ETF<\/td>Low<\/td>Low<\/td>High<\/td><\/tr>
Volatility<\/strong><\/td>Low<\/td>Low<\/td>Low to high depending on the ETF<\/td>Low<\/td>Low<\/td>High<\/td><\/tr><\/tbody><\/table>

Short-term investment option 1: Savings accounts<\/h3>

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.<\/p>

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.<\/p>

Alternatively, you might like to invest in a tax-free savings account (TFSA)<\/a>. 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.<\/p>

What type of returns can you get with a savings account in Canada?<\/h4>

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.<\/p>

The highest ongoing rates for savings accounts range around 0.01% \u2013 1% from Big Banks and 0.3% \u2013 3% from digital banks and fintechs.<\/p>

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Some of the best savings account promo rates available now:<\/h4>