We’re looking for ideas on how to make some interest on a lump sum of $30-50k within the next year. The goal is to use the interest to help pay for a vacation we’re planning for November 2025.
Right now, we’re considering putting it into a TFSA since I’ve got room left. We plan to withdraw the interest after a year and use it toward the trip.
We don’t need this money for any emergencies or big purchases, like a house, anytime soon.
Any recommendations?
Check out Cash.to or CBIL. You should definitely use a TFSA, or you’ll get taxed on the interest.
Harlem said:
Check out Cash.to or CBIL. You should definitely use a TFSA, or you’ll get taxed on the interest.
Appreciate the tip!
Harlem said:
Check out Cash.to or CBIL. You should definitely use a TFSA, or you’ll get taxed on the interest.
Appreciate the tip!
To do that, you’ll need a discount brokerage or direct investing account. But yes, 4% tax-free interest in a TFSA is better than 5% taxable interest.
If you don’t have enough TFSA room, you could look at the promo rates from banks like Simplii or Tangerine. Those often give the highest interest rates, at least while the promo lasts. How much time are you willing to spend managing all this?
@Ren
I don’t mind putting in the effort. How much extra interest are we talking about here?
Merrick said:
@Ren
I don’t mind putting in the effort. How much extra interest are we talking about here?
You can calculate it easily—1% on 30k would be around $300.
@Ren
I doubt Cash.to will stay above 4% for the entire year, but it’s probably still your best option.
Chen said:
@Ren
I doubt Cash.to will stay above 4% for the entire year, but it’s probably still your best option.
I don’t know, I’ve been getting over 4% each month so far.
Chen said:
@Ren
I doubt Cash.to will stay above 4% for the entire year, but it’s probably still your best option.
I don’t know, I’ve been getting over 4% each month so far.
Interest rates are coming down, so Cash.to and similar options will probably follow soon.
@Keenan
You’re right.
@Keenan
Yeah, they’ve already dropped a bit from their peak.
Put it all on red. You could double it and walk away with 100k.
Sam said:
Put it all on red. You could double it and walk away with 100k.
My wife would never let me do something that risky, and honestly, I’m glad.
Sam said:
Put it all on red. You could double it and walk away with 100k.
What’s red?
Sam said:
Put it all on red. You could double it and walk away with 100k.
What’s red?
He means betting on red in roulette.
GICs are offering decent rates right now too. You might want to consider them.
Have you thought about an ETF like Bank.TO? It’s a solid choice for short-term investing in a dividend portfolio. I’ve made about 3k from 20k in a year.
San said:
Have you thought about an ETF like Bank.TO? It’s a solid choice for short-term investing in a dividend portfolio. I’ve made about 3k from 20k in a year.
Thanks for the suggestion! We’ll check out ETFs tonight.
Tangerine’s offering a 6% interest promo for their new TFSA HISA account, but it only lasts for 5 months.
Lennon said:
Tangerine’s offering a 6% interest promo for their new TFSA HISA account, but it only lasts for 5 months.
Thanks for letting me know!