Canadian Investors Can Still Earn Reasonable Yield on Cash Without Much Risk

The Bank of Canada has kept its policy interest rate at 2.25%, citing uncertainty around US tariffs, economic recovery, and inflation outlook.

This means that Canadian investors can still earn a reasonable yield on cash without taking much investment risk.

For savers, the opportunity to earn decent interest on idle cash may stick around for a while longer, but future rate decisions depend on inflation and economic conditions.

There are three ways to keep your cash safe and earning monthly income with Canadian EFTs: HISA, CBIL, and ZMMK.

HISA places its assets in high-interest deposit accounts at major Canadian financial institutions and offers a 2.12% net annualized yield after its 0.16% MER.

CBIL invests in Government of Canada Treasury Bills with remaining maturities of three months or less, offering an annualized yield of approximately 2.15% after its 0.11% MER.

ZMMK takes slightly more credit risk to offer a modest yield pickup and has offered an annualized yield of 2.41% after its 0.13% MER.