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Purpose High Interest Savings Fund (PSA)
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Cash (CAD dollars) (CASH.CAD)
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Global X 0-3 Month T-Bill ETF (CBIL)
Q: What vehicle would be your top recommendation for parking cash for next 12 months. Thanks. Rick
5i Research Answer:
For a traded ETF, PSA looks solid to us. Not all brokers can access this, so CASH and CBIL can be alternatives. But, for a non-redeemable option, a one-year GIC is likely going to offer a higher rate and full insurance protection (up to $100K). 5.20% can be achieved at certain trust companies. This may be an advantage as the yields on the ETF products will likely tick lower if Canadian interest rates continue to fall in the next year.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in PSA.