Q&A: Short-Term Investment

A reader wants to know: I sold my house, now where do I put the money?

 

 

Q – How would you invest $275,000 short term (three months)? I’ve sold my house and have the cash in hand but may not purchase a new house for two to three months. – Brian W.

 

A – Obviously, you don’t want to put your money at risk. You’re going to need it for that new house before long. So don’t be greedy. Put the money into a high interest savings account (or three of them at different financial institutions if you want to be fully protected by deposit insurance). You won’t make a lot of money but the principal will be safe.

According to highinterestsavings.ca, rates of between 1.3% and 1.95% are available from smaller financial institutions. However, you can sometimes find special promotions at the big banks. For example, CIBC is currently offering 2% until Sept. 30 on new deposits to an eAdvantage Savings Account when the balance is $5,000 or more. That time frame seems just right for you. – G.P.

 

Gordon_safe-ports_HR-_DSC4845Do you have a money question you’d like to ask Gordon? Find out how to submit it here and then check out our Money section regularly to see if it was chosen for a response. Sorry, we cannot send personal answers.