On this page you’ll find
If you have a smaller amount to invest
Consider these 4 common options:
To learn more, read Comparing short-term investments.
If you have a larger amount to invest
Consider these 5 options:
Deciding where to invest
Compare different products and decide which one gives you the features you need. Think about when you will need your money, for example, and what fees you will have to pay.
Also compare the interest rate each investment pays. For example, cash and cash-equivalents give you low risk and easy access to your money, but they also have a lower return than other short-term investments. And they may not keep pace with inflation.
When you’re shopping around, you may want to start by talking to your financial advisor about the products they offer.
10 questions to ask
- What interest rate will you get?
- Do you qualify for any special rates? Can you get a higher interest rate if you invest more money? If you have other products with this financial institution?
- Is there another safe option that pays a bit more?
- Are there service fees and how much are they?
- Are there any other costs?
- Can you get your money when you want it — quickly, easily and without penalty?
- Is there any risk you could lose any of your money?
- Could the interest rate change?
- Do you have to make a minimum deposit?
- Is your money insured by the government?
3 reasons to hold cash equivalents
To pay for unexpected bills and expenses
- To have a small, steady and safe income stream if you need it
- To invest in the stock market if there is a change in the stock market that creates new opportunities
- To help hold up the value of your portfolio if some of your other investments lose value
If you get a bonus at work
Instead of spending a bonus, consider using it to top up your savings.
A cash equivalent is an investment that can be turned into cash within 90 days, like a savings account, money market fund or a T-bill.
Use this calculator to see how even small amounts of money saved add up over time.