Safe Investments with High Returns in Canada

In this article, we will discuss the safe investments with high returns in Canada.

With the Canadian economy facing continued uncertainty in 2025, many investors are shifting their focus toward secure, low-risk investment opportunities.

If you anticipate needing your funds within the next five years, I strongly suggest sticking to investments that are protected by the Canada Deposit Insurance Corporation (CDIC). These include high-interest savings accounts and Guaranteed Investment Certificates (GICs). While they may not deliver high returns, they do offer peace of mind.

However, if your financial goals are more long-term — like saving for retirement — you may want to explore more growth-oriented options. For that, I recommend checking out my guide to the best long-term investments in Canada.

For those saving for a short-term goal like a new car, a vacation, or a home down payment, here are  6 safe investments with high returns in Canada:

1) High-Interest Savings Accounts (HISAs)

HISAs are among the most secure places to store your money. They offer immediate access to your funds and typically earn more interest than regular savings accounts.

Major banks tend to offer very low interest rates (as little as 0.1% to 0.5%), so you’ll often find better returns with Canada’s leading online banks, which also offer no-fee accounts.

2) Guaranteed Investment Certificates (GICs)

GICs are low-risk, fixed-term investments. You lend your money to a financial institution for a set period, and in return, you receive guaranteed interest payments and your full principal at maturity.

You can choose between fixed-rate GICs (which remain constant) and variable-rate GICs (which fluctuate with the Prime rate). For maximum stability, fixed-rate GICs are generally the safer bet.

3) Treasury Bills (T-Bills)

T-Bills are short-term debt securities issued by the Government of Canada. You buy them at a discount, and upon maturity, you receive the full face value — earning a profit in the process.

Though they don’t offer regular interest payments, T-Bills are extremely secure thanks to the government’s strong creditworthiness.

4) Money Market Funds

These are mutual funds composed of high-quality, short-term securities like federal Treasury Bills, government debt, or other cash equivalents.

While money market funds aren’t CDIC-insured, they’re still considered very low risk. Keep in mind, though, that management fees may apply and could impact your overall returns.

5) Bonds

Bonds function much like GICs — you lend money in exchange for periodic interest payments and a return of your principal at maturity.

While bonds don’t come with CDIC protection, they can still be a safe bet if you stick with high-quality issuers, such as governments or established corporations.

6) Annuities

Annuities differ slightly from the other options listed. With an annuity, you invest a lump sum (or make regular contributions) to an insurance provider, who in turn promises to make regular payments to you in the future.

They’re ideal for those looking to ensure a steady income stream during retirement, and are backed by the financial strength of the insurer.

By now, you might know the safe investments with high returns in Canada. For short-term goals and peace of mind, these low-risk Canadian investments offer security, stability, and reliable returns.