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Purpose High Interest Savings Fund (PSA)
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Global X High Interest Savings ETF (CASH)
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Global X 0-3 Month T-Bill ETF (CBIL)
Q: Hello, I have $500,000 GIC coming due next month and another $500,000 in March. They both are earning a little over 5%. What safe investment would you recommend, bearing in mind that I need the income it would generate to cover some of my living expenses, as I am retired. Thank you
5i Research Answer:
GICs will most likely contine to provide the highest yields available, though they are no longer 5%. They will also offer the most safety. Some other very secure options: Bank money market funds (highly liquid and safe), government treasury bills (highly liquid and guaranteed even above $100,000), high interest savings or T-bill ETFs, such as CASH, PSA or CBIL. Rates have adjusted lower and all of these will still see some lower yields if rates continue to fall (except GICs which are locked in).