cash now

What To Do with Cash Now

The Bank of Canada has raised its policy rate over 2022, and it is currently 3.75%. 

Prior to the interest rate increases this year, there were not many options for your cash reserves. With inflation running at 6.9 % today, you need to earn as much interest as you can on your cash.


  • Consider high-interest savings accounts for cash you need in the following 12-month period.
  • Consider GICs for cash you may need in a 1–3-year period.



High-interest savings accounts are accounts offered by financial institutions. Compared to a bank account, they provide:

  • a higher interest rate than a bank account, 
  • are cashable with no set time period of investment, so you can access the money as required, 
  • and the rate of interest will rise and decline with current interest rates. 

Since the start of this year, the rates these accounts provide have increased dramatically.

For example, in February 2022, The Scotia Bank High-Interest Savings Accounts were paying about 0.45%, and for most of 2021, they were under 0.30%. Today for High-Interest Savings Accounts, they are offering 3.65%. 

(Source: Scotia Bank Advisor Deposit Services)

CI Investments (an associated company of CI Assante) has a high-interest savings fund that is currently paying 3.98%. These rates will rise and fall with the Bank of Canada’s rate. (Source: CI Global Asset Management)

The advantage of these high-interest accounts is you can access the money when required, and the interest rate will be higher than your bank account.


A GIC is a term deposit with a financial institution. With a GIC: 

  • You invest for a time period, and then you get your money back (normally 1 to 5 years).
  • You receive interest on your deposit.
  • The interest can be paid monthly, annually, or at the end of the term.
  • The interest rate is normally fixed (taxable annually).
  • If you cash in prior to the term of the contract, you may have to pay a penalty.

GIC rates have increased dramatically this year.

For example, as of February 28th of this year, a one-year compounded GIC was paying on average under 1.80%, and for a five-year compounded GIC, it was paying just under 3%. (Compounded means you receive your interest at the end of the term)

Currently, compounded GIC rates are about (depending on the financial institution):

  • One-year GICs are paying, on average, 5%. 
  • 2-to-3-year GICs are about the same, 5% interest rate.

(Source: Cannex Rates)


Today with the increase in interest rates, you cannot be complacent about your cash reserves, and you may not want to leave them in your bank account. There are other options you can consider depending on when you might need the money.

If the period is less than a year, consider a high-interest savings account, and for time frames from 1-3 years, you might review GICs.

Download our White Paper: Your Retirement Road Map: How to make the Transition to Retirement HERE 

For more information, you can refer to Preserving Wealth: The Next Generation – The definitive guide to protecting, investing, and transferring wealth by Jack Lumsden, MBA, CFP®

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This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. The information provided is for illustrative purposes only. Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. Please read the Fund Facts and consult your Assante Advisor before investing.

Insurance products are services provided through Assante Estate and Insurance Services Inc.

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