Low-risk investments with better rates

Rates at smaller banks and credit unions are often much higher than at the big banks, but mind the risks.

Craig Sebastiano 4 August, 2017 | 5:00PM
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For those not wanting to take investment risks with their money, parking their cash in high-interest savings accounts or guaranteed investment certificates is a popular option. But finding a good rate can be difficult, especially if you choose one of the big banks.

However, there are smaller financial institutions that have higher rates and are insured by the Canada Deposit Insurance Corporation (CDIC) or provincial deposit insurers.

The rates these smaller institutions offer on high-interest savings accounts and GICs are much higher than those of the big banks. For example, Meridian Credit Union offers a high-interest savings account with a rate of 1.4%. By comparison, the rate on the TD High Interest Savings Account is 0.5% as long as the balance is $5,000 or more. If not, no interest will be paid whatsoever.

What credit unions offer

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About Author

Craig Sebastiano

Craig Sebastiano  Craig Sebastiano is a freelance writer based in Toronto. He writes about topics related to personal finance, investing, retirement and real estate. He has worked at BNN, Benefits Canada and StockHouse.

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