Guaranteed Saving options with high interest

My oldest has asked if they can invest some of their money, as a child I had GICs which I know have little growth but are guaranteed and would allow him to save some of his money over the next few years.
Are there other simple guaranteed investments that I could look into, when I called the bank they told me to go online and apply there id like to do some research first and ask some questions as they arise? The bank made it sound like if I don't pay someone to handle the investments, I'm on my own.

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@Anna Michele isn't a TFSA the first order of business for tucking $$ away? Ikwym with banks usually self promoting and eager to " handle " your investments. Hope your eldest DS finds something that can work for him.

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Originally Posted by walkonby

@Anna Michele isn't a TFSA the first order of business for tucking $$ away? Ikwym with banks usually self promoting and eager to " handle " your investments. Hope your eldest DS finds something that can work for him.

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But he wants to earn some money on his savings

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The first question that has to be answered here in order to make any suggestions is this - what is the expected time at which he will want access to the savings?

The answer varies wildly depending on the answer to this question.

Is it months, years or decades?

If it is months, then GICs are the way to go. In this case, stock investments might be down when he wants to access the cash.

If the answer is years to decades, then I suggest that he check out https://canadiancouchpotato.com/. Don't dive in, but read. Read a lot.

Always remember, the bank is in the business of selling services. If you talk to them, they will invariably try to sell expensive in-bank mutual funds. Sure, you could do worse, but you could do a lot better. ETFs are most definitely the way to go to invest.

Stress with him that the first step is just to save. Not spending your money is the first investment step. Once you have some savings, and have read enough that you know the difference between stocks, bonds, mutual funds, and ETFs, then is the time to open a trading account and start putting the money to work.

Thank you yes he's has savings and technically should not need access till a minimum of 2 years but will be fine to have it tied up for 5 or more as long as the gain is worth the wait.

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Also may be important to note he will be 16 this year

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Is he likely headed to college or university? If so, an RESP is likely even better as the government matches some of the savings.

He has an resp and likely will do college for a trade

Interest rates are starting to go up. If you want secure GIC - check out Tangerine bank, You can get 1.5 year term for 2.50% in a regular or TFSA account.