The following choices are considered low-risk income investments:
- Savings accounts
- Canada Savings Bonds (CSBs)
- Guaranteed Investment Certificates (GICs)
- Money market funds
- Treasury bills (T-bills)
Which investments are right for me?
To find out, be sure to ask:
- How much income will I get? This is often based on interest rates. Often, the longer you invest in one of these income products, the more you make. But sometimes, you don't make that much more.
- When can I take my money out? If you think you may need to get cash quickly, stay away from investments that lock in your money until a set date. For example, some Guaranteed Investment Certificates (GICs) lock in your savings. Others let you cash in any time, but you pay a penalty for taking your money out early.
- Are there any fees? Many investments that pay interest don’t charge fees when you buy. Watch out for account fees and other costs.
This chart compares some low-risk income products. It shows you how much you could make if you invest $10,000 for a year in each one.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.