Cash & Cash-Equivalent Comparison

A plain-English side-by-side of low-risk places to park cash — US ultra-short/T-bill ETFs, Canadian high-interest savings ETFs, an RBC savings fund, and RBC GICs.

Rates last checked: September 5, 2026

These are short-term, low-volatility options people use instead of leaving cash idle. They are not all the same kind of thing — some are ETFs that hold Treasury bills, one is a bank savings account wrapped as a fund, and one is a guaranteed term deposit. That's why yield alone doesn't tell the whole story — currency, taxes, and how easily you can get your money back all matter too.

Yields move. Every rate below changes with central bank policy, sometimes month to month. Treat these as a snapshot, not a promise — check the fund's own website before acting, especially if it's been more than a few weeks since the date above.

The comparison

Fund / account Currency Approx. yield Annual cost What it actually holds Backing
JPSTJPMorgan Ultra-Short Income ETF USD ~4.5% 0.18% Actively managed — short-term corporate bonds & asset-backed paper, not just government debt Not government-backed; investment-grade credit risk
SGOViShares 0-3 Month Treasury Bond ETF USD ~3.8% 0.09% US Treasury bills maturing in 0–3 months only Backed by the US government
BILSPDR Bloomberg 1-3 Month T-Bill ETF USD ~4.2% 0.14% US Treasury bills maturing in 1–3 months Backed by the US government
ICSHiShares Ultra Short-Term Bond ETF USD ~4.6% 0.08% Actively managed — mostly investment-grade corporates, ABS & some Treasuries Not government-backed; investment-grade credit risk
RBC Investment Savings AccountSeries A, fund code RBF2010 CAD ~1.8% None stated A mutual-fund wrapper around a bank savings deposit CDIC-eligible, combined with your other RBC deposits, up to CDIC limits
PSA.TOPurpose High Interest Savings ETF CAD ~2.2% 0.15% Deposits held at Schedule I Canadian banks + short Canadian T-bills Bank deposits + government T-bills (not itself CDIC-insured)
CASH.TOGlobal X High Interest Savings ETF CAD ~2.1% 0.11% Deposits held at Canadian chartered banks Bank deposits (not itself CDIC-insured)
RBC GICsNon-redeemable & cashable terms CAD ~2.2%–3.1%1-yr cashable ~2.2% · 1-yr locked ~2.7% · 5-yr locked ~3.1% None A fixed-term deposit — you lend RBC money for a set term at a locked rate CDIC-insured up to CDIC limits

"Approx. yield" for the ETFs is each fund's most recently published 30-day/SEC-style yield, which moves with interest rates and is not a guaranteed or fixed return the way a GIC rate is. GIC and savings-account rates are RBC's posted rates at the time this page was last checked.

How these are taxed (general info, not tax advice)

None of these get the tax breaks that Canadian dividends or capital gains get. With one partial exception (currency swings on the US ETFs), the income from every option on this list is taxed as regular interest income, at your full marginal rate, in a non-registered account.

The registered-account shortcut

Hold any of these inside a TFSA or RRSP and the interest isn't taxed by Canada at all while it stays in the account. If you're choosing between these purely on an after-tax basis, where you hold them usually matters more than which one you pick.

GICs: you're taxed every year, not just when you cash out

This one surprises people. A 5-year non-redeemable GIC pays you nothing until maturity — but the CRA still expects you to report the accrued interest on your tax return every single year, based on the anniversary date, not just in the year you finally receive the cash.

The US-listed ETFs (JPST, SGOV, BIL, ICSH) as a Canadian resident

Three things work differently here than with a Canadian fund:

1. It's still fully taxable interest income to the CRA — being a US fund doesn't change that. Your Canadian brokerage will issue a slip converting the income to Canadian dollars.

2. US withholding tax generally does not apply to this kind of US government/short-term interest income paid to a Canadian resident, under the Canada–US tax treaty's treatment of interest — unlike US stock dividends, which usually do have US tax withheld. Brokerage practices and edge cases vary, so check your actual account statements rather than assuming.

3. Currency movement is a separate, second tax event. Because these trade in US dollars, the exchange rate between when you bought and when you sold or received a distribution can create its own foreign-exchange capital gain or loss — taxed differently (and separately) from the interest itself.

This section is general education, not personal tax advice. Tax treaty rules, brokerage reporting, and your own situation (registered vs. non-registered, RRSP vs. TFSA, other income) all change the real answer. Confirm anything that matters with an accountant before you file or before you decide where to hold these.

Top picks, by situation

These are general starting points, not a recommendation for your specific situation.

"I want the simplest option, in Canadian dollars, no US tax questions"
CASH.TO or PSA.TO

Near-identical products. Compare current yield after fees before picking one — the gap between them moves around.

"I already have US dollars sitting idle and don't want to pay to convert them"
SGOV or BIL for the safest option; JPST or ICSH for a bit more yield

SGOV and BIL hold only short-term US government debt — about as low-risk as it gets. JPST and ICSH take on a little more credit risk for a higher yield.

"I don't need this money for a while and want a locked-in, guaranteed rate"
RBC non-redeemable GIC

The rate is fixed and guaranteed, but you give up access to the money (and the chance to earn more if rates rise) until the term ends.

"I want most of my cash locked at a good rate but might need some of it sooner"
Split between a GIC and CASH.TO / PSA.TO, or use a cashable GIC

A cashable GIC trades a lower guaranteed rate for the ability to break it early if you need to.

How to update the numbers on this page later

You don't need to know any code to do this. Open cash-investment-comparison.html in a plain text editor (TextEdit on a Mac works, as long as you use Format → Make Plain Text first so it doesn't turn it into a formatted document).

Use your editor's Find feature (Cmd+F) to search for the fund name you want to update — e.g. search for SGOV. You'll land on a line that looks like this:

<td class="yield">~3.8%</td>

Only change the number between the > and < (in this example, ~3.8%). Leave everything else — the <td> and </td> parts — exactly as it is; those are just invisible instructions telling the page "this is a table cell," and deleting one will break the table's layout.

Also update the date badge near the top of the page (search for Rates last checked) so it's clear how fresh the numbers are.

Once you've saved your changes, you'll need to re-publish the file to the live site — ask me and I'll walk you through that step whenever you're ready to update it.