Personal Finance

Recommendation for no risk investment products

  • Last Updated:
  • Jan 11th, 2019 2:11 pm
[OP]
Newbie
Feb 18, 2017
3 posts

Recommendation for no risk investment products

I have 20k in CIBC eAdvantage account. I want to invest no risk products. I can find some GIC with more than 2% interest rate for 1 yr. Is there any other options with no risk which are better than GIC?
6 replies
Deal Addict
Dec 18, 2009
1568 posts
507 upvotes
Toronto
invest in pumpkins in August and sell in October.
Deal Guru
User avatar
May 8, 2009
11037 posts
7579 upvotes
Leask
Don't settle for less than 3%/1yr

Achieva Financial GIC rates link here.

You wouldn't settle for less than Achieva, with their super easy signup and their $25/$250 balance welcome bonus, plus $1/month free money for going paperless.

Implicity is 3.10%/1 yr GIC right now. Same deal at Omnia Direct. Also same at Parama CU & Oaken Financial.

Heck, Simplii and Tang offer 3%.

Financial Post has a mega list.

Big banks aren't a good place to stash savings. They sometimes have promo's on HISA, but you'll almost always get better deals elsewhere.
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Member
Jan 4, 2017
336 posts
179 upvotes
Motive has 2.8% non-promo rate on savings accounts. Various places offer 3% on 1-year GICs. But then you have to decide if ~$40/year is worth having $20k tied up, depends on you. You'll get a better rate on longer terms with GICs, with some offering 3.6 - 3.75% on 5-year. You pretty much just can't expect a high return without accepting risk - no risk = low return. If you're not opposed to churning promos, you can bounce the money around between promo offers to get ~3% on savings accounts. It's a way to get similar returns to the 1-year GICs without having the money strictly locked up that whole time.
Member
Jun 19, 2007
497 posts
252 upvotes
Halifax
There's no such thing as zero risk, and risk =/= volatility. You either risk losing the money to inflation and taxes very slowly with low and predictable volatility (but ultimately over the long haul ending up at zero) or invest in markets and end up with millions but with a bumping road and maybe a 40% bounce up and down here and there.
Deal Addict
Jul 3, 2017
3860 posts
2763 upvotes
Hubert 1-year GIC with quarterly payout, currently at 3.1%. The rate escalates by quarter, 2.95%/3.05%/3.15%/3.25%, and it pays out every quarter, allowing you to terminate early and keep the interest up to the end of the most recent quarter.

With interest rates rising, this arrangement lets you cancel the current GIC and start a new one at the end of each quarter if the rate has jumped enough to make it worthwhile.

Hubert also lets you easily set up direct transfer links to your other bank accounts, so it's easy to move money in and out.
Deal Fanatic
Feb 15, 2006
8283 posts
2561 upvotes
Toronto
kensallay wrote:
Jan 10th, 2019 8:08 pm
I have 20k in CIBC eAdvantage account. I want to invest no risk products. I can find some GIC with more than 2% interest rate for 1 yr. Is there any other options with no risk which are better than GIC?
As has been said, there is NO no-risk product. There is inflation, tax, government/rule changes, disasters, etc.

If you want as close to no risk at all to see the 20k worth, spend the money NOW. Next year/month/week/day/minute things can change.

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