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How should I be saving while interest rates climb?

The Bank of Canada announced another interest rate hike, bringing the prime rate up yet again at Canada’s major banks. The several increases throughout the year so far have many Canadians wondering what this means for their money. Although rising rates could affect the repayment timelines of loans, it also means more returns from savings options like GICs.

What are the best ways to save right now?

The silver lining of interest rate increases, is that the rate of returns goes up in relevant investment vehicles as well. This means any funds you have set aside in GICs or High-Interest Savings Accounts will start to grow quicker than in the recent past. With that being said although these returns have increased, their rate of return may not match the current rate of inflation. In order to protect yourself against inflation, you may want to consider saving a portion of your money in investments like market-linked GICs or mutual funds that may better protect you against inflation-related fund depletion. Whether you prefer to play it safe and take advantage of rising rates of return, or have more appetite for risk and are looking to offset the rate of inflation that often accompanies rate hikes, it’s always a good idea to review your goals and your portfolio with your advisor. They can take stock of market conditions and how it may impact your current financial goals, and put together a plan that makes you feel confident about your path forward.

We’re here to help.

If you’re still unclear what this could all mean for you, connect with one of our advisors. We’re on standby to help you make sense of these rate hikes and feel confident about your finances. Call us at 1.888.517.7000 or book an appointment online.


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This article is provided for general information purposes only. It is not to be relied upon as financial, tax, or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, fees, and other investment factors are subject to change without notice, and Coast Capital Savings Federal Credit Union is not responsible for updating this information. All third-party sources are believed to be accurate and reliable as of the date of publication and Coast Capital Savings Federal Credit Union does not guarantee the accuracy or reliability of such sources. Readers should consult their own professional advisor for specific financial, investment, and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.

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