02/03/2023
If you have cash or savings in a high interest rate environment, you aren’t so mad about higher interest rates. For the first time in a long time, you’re actually earning interest! And you’ve got choices. If you need the money in the short term for emergencies or something specific soon, a high yield savings account in a tfsa may work best for you. Here’s the hook, make sure the money is invested in that tfsa. They don’t all earn high interest just because they are in a tfsa.
If you don’t need the money right away or even if it’s in an rsp or a rif, you may be better off with nonds. Bonds have a set rate of interest and a maturity date. The only thing that fluctuates is the price. Bonds have come down quite a bit in price, which means this is a GREAT time to buy. Trouble is, most people don’t know how to buy bonds so they buy GICs. With a GIC you’ve locked in a yield…good for you! But GICs do not appreciate in price. We have been trading bonds since the last time rates were this high Doyenne Financial Ltd