Cash Allocation
By Jessica Morgan on October 2, 2024
Estimated reading time: 4 minutes
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Simplii Financial
By Jessica Morgan on October 2, 2024
Estimated reading time: 4 minutes
As interest rates continue to fall, Canadians are looking for alternatives to grow their cash. A HISA is a flexible option with competitive rates.
The Bank of Canada (BoC) recently lowered its policy interest rate by another 25 basis points, from 4.50% to 4.25%. It was the central bank’s third consecutive cut, and economists widely expect more cuts before the end of the year.
What does it mean for Canadians as borrowers and savers when interest rate cuts happen? On the positive side, it means we’re starting to get inflation under control, and lenders are beginning to offer lower rates on mortgages and other types of loans. On the downside, it means the interest rates you can earn on guaranteed investment certificates (GICs)—a popular short-term savings vehicle in Canada—have started to drop. Already, 5% GICs, available just a few months ago, are a thing of the past.
Because GIC rates are dropping, Canadians are looking for alternatives........