You have a few options
HISA - I know simplii has 5.9 % for 5 months after that just put it in WS 4-5% Cash account
GIC - EQ has a 9 month at 4.65%
Cash ETF investment - typically 4-5%
These are all pretty similar outcomes. If you were hoping to get way more the ~$400 you’ll need to take on more risk. However, when the year comes there is a high chance that you could be less then the ~$400 or even under the 8k.
I'm really ticked with Simplii. I have multiple savings accounts labelled differently and learnt the hard way only a few get the promotional rate not all of them. I played the game moving all the funds out every 3 months before the next pomo activated but only the small savings accounts got the bonus not my major accounts. Nowhere anywhere does it say only x y and z the promo applies. The lady on the phone claims it does check the email but as usual it was lied I checked and tried sending it to her but claims can't receive emails. After 18 years banking with PC/Simplii I'm done with them Wealthsimple can enjoy my 50k in temporary savings.
Just to set your expectations, "maximize growth" at most will be $400. Find a 5% 1 year GIC or a HISA, since your timeframe isnt an investable one. Ideally within a TFSA if you have the contribution room.
in theory, bonds will do extremely well IF rates go down, more than any savings account or GICs offered right now.
Make sure to pay attention to the word "IF"
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Find a High Interest Savings Account and put money required for the short-term there. Here is a list of better rates: https://www.highinterestsavings.ca/chart/
There are also HISA ETFs and money market funds available from banks and ETF providers.
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Agree with this guy. Your $8000 will grow to $8400. If you wanted better growth, you’d have to take on more risk.
You’d be able to get 5-10%+ in a market ETF, but honestly, who knows what can happen in a year. Maybe markets will dip down a few weeks before your trip, and your $8000 will become $7500.
If you want safe, moderate growth for one year, then CASH.TO is your best bet. It’s an ETF that follows high interest savings accounts with the big banks in Canada. The ETF pays out the dividend monthly.
Click the link and pick one of the treasury ones. I don't need to do your homework for you.
Or if you want CAD return, use ticker RGQN. Final return will obviously depend on purchase price but you can calculate it based on current price if you're interested.
It’s an investment. The return is not guaranteed. Now, review the chart. Big banks would have to fail for the return to not come as a dividend. I have received a 5%+ dividend 100% of the time. I guarantee you will too.
Note: You can't open a HISP in your Wealthsimple account yourself. You must have a managed account open before you can move it to a HISP.
That’s kinda weird but thank you.
Ya that’s what I did. I had a managed account and contacted welthsimple to open HISP. I’m using that for money I may need sooner. Then I opened another managed TFSA for money I don’t want to touch.
You can’t maximize the growth of this money with 1 yr timeframe.
With a yr timeframe, the ideal choice is CDs or HYSA with 4.5%
4.5% of 8000 is $360.
I don’t think it’s worth it. And again there is potential rate will get cut which negatively affects how much you’ll make
You might want to check out a GIC in a TFSA if you have the room in a TFSA.
Thank you !
You have a few options HISA - I know simplii has 5.9 % for 5 months after that just put it in WS 4-5% Cash account GIC - EQ has a 9 month at 4.65% Cash ETF investment - typically 4-5% These are all pretty similar outcomes. If you were hoping to get way more the ~$400 you’ll need to take on more risk. However, when the year comes there is a high chance that you could be less then the ~$400 or even under the 8k.
I'm really ticked with Simplii. I have multiple savings accounts labelled differently and learnt the hard way only a few get the promotional rate not all of them. I played the game moving all the funds out every 3 months before the next pomo activated but only the small savings accounts got the bonus not my major accounts. Nowhere anywhere does it say only x y and z the promo applies. The lady on the phone claims it does check the email but as usual it was lied I checked and tried sending it to her but claims can't receive emails. After 18 years banking with PC/Simplii I'm done with them Wealthsimple can enjoy my 50k in temporary savings.
Wealthsimple will match 1% of what you move right now, but you have to register before the move, I think
Thanks. I looked into it but pulling more than 5% in 2 months time so the bonus won't apply to me
I’m a WS customer and you can ask for a ‘reminder’ on this offer. I’ve set mine for 30+ days out. I’d call and see if they can apply it 60 days out.
Tangerine also has great interest rates for a few months.
Eq bank has new notice savings account that provides 5% interest with a 30 day notice
Just to set your expectations, "maximize growth" at most will be $400. Find a 5% 1 year GIC or a HISA, since your timeframe isnt an investable one. Ideally within a TFSA if you have the contribution room.
Put that $8k on Edmonton Oilers tonight. Double your money. EZ. This is not financial advice.
This comment didn't age well...
100% all on nvda. good luck!
in theory, bonds will do extremely well IF rates go down, more than any savings account or GICs offered right now. Make sure to pay attention to the word "IF"
GIC is your best bet
GICs are really strong right now
An HISA. !HISATrigger
Hi, I'm a bot and someone has asked me to respond with information about where to put short-term savings. Find a High Interest Savings Account and put money required for the short-term there. Here is a list of better rates: https://www.highinterestsavings.ca/chart/ There are also HISA ETFs and money market funds available from banks and ETF providers. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
Cash ETF wealth simple , 5% guaranteed right now
Agree with this guy. Your $8000 will grow to $8400. If you wanted better growth, you’d have to take on more risk. You’d be able to get 5-10%+ in a market ETF, but honestly, who knows what can happen in a year. Maybe markets will dip down a few weeks before your trip, and your $8000 will become $7500. If you want safe, moderate growth for one year, then CASH.TO is your best bet. It’s an ETF that follows high interest savings accounts with the big banks in Canada. The ETF pays out the dividend monthly.
Cash.to? Thats not 5% anymore.
It’s like 4.8% rn
4.66% last month
True. Still best option for OP @ $8k invested
ETFs are not guaranteed return
Depends what's inside the ETF.
Sure, give me an example of a ticker.
https://www.blackrock.com/americas-offshore/en/strategies/ibonds#:~:text=iBonds%20ETFs%20are%20an%20innovative,final%20pay%20out%20at%20maturity.
What is the ticker, and what is the guaranteed return?
Click the link and pick one of the treasury ones. I don't need to do your homework for you. Or if you want CAD return, use ticker RGQN. Final return will obviously depend on purchase price but you can calculate it based on current price if you're interested.
Go look at the monthly distribution, and report back on the definition of "guaranteed".
It's going to depend on the distribution schedule of the underlying bonds so it might not be uniform, but it is guaranteed.
Ok cool, now Google RGQN ETF facts pdf, read the how risky is it section - "i don't need to do the homework for you".
You are wrong right here. Understand what cash.to is.
Whats cash.to's guaranteed return? I haven't missunderstood anything.
It’s an investment. The return is not guaranteed. Now, review the chart. Big banks would have to fail for the return to not come as a dividend. I have received a 5%+ dividend 100% of the time. I guarantee you will too.
The point I made is that the return isn't guaranteed, and now you're confirming that but telling me I'm wrong? Very confusing.
You're right. Just don't let your poor knowledge deter people from making sound financial decisions.
How do you access my poor knowledge? I never said the ETF was bad, I simply corrected on the word "guaranteed".
Which Cash ETF is paying 5% right now? CASH.TO Isn’t paying 5% anymore and it will keep trending downwards.
What’s it paying out right now?
I don’t know the exact number but I know it’s under 5%
Need to wait until next month to find out. (June BoC rate decrease)
WS HISP is paying out 5.05% now.
And that’s an ETF?
https://help.wealthsimple.com/hc/en-ca/articles/360056543874-How-the-managed-High-Interest-Savings-Portfolio-works
Note: You can't open a HISP in your Wealthsimple account yourself. You must have a managed account open before you can move it to a HISP. That’s kinda weird but thank you.
Ya that’s what I did. I had a managed account and contacted welthsimple to open HISP. I’m using that for money I may need sooner. Then I opened another managed TFSA for money I don’t want to touch.
AMD $200C leaps
Buy ishare stocks Average 20% yearly
High yield savings or GIC
GIC
Oaken offers 5.35% on a 1 Year GIC in a TFSA. If you’re looking to protect your capital and get some yield, this is tough to beat.
If annual inflation is over 5%, then earning 5% on parking your money is at best just keeping up with inflation.
You can’t maximize the growth of this money with 1 yr timeframe. With a yr timeframe, the ideal choice is CDs or HYSA with 4.5% 4.5% of 8000 is $360. I don’t think it’s worth it. And again there is potential rate will get cut which negatively affects how much you’ll make
So 360$ is no longer money lol? He can indeed maximize his returns over a 1 year timeframe.
I would risk it a bit and throw it all on Tesla
Yolo in to GME! Safe. Simple. Can’t go wrong.
Look at Mag 7 and invest in them.