Best Low Risk Investments for Canadians (2025)

When it comes to investing, Canadians in 2025 are facing a unique environment: relatively high interest rates compared to the past decade, growing economic uncertainty, and a renewed emphasis on wealth preservation. For many, the priority is clear — protect capital while earning modest, reliable returns. Fortunately, there are a range of low-risk investment options available that balance safety with respectable yield.

In this article, we’ll break down the best low-risk investments for Canadians in 2025, taking into account market conditions, tax implications, accessibility, and growth potential.

1. High-Interest Savings Accounts (HISAs)

High-Interest Savings Accounts remain one of the simplest and safest ways to park your money without risking your principal. With the Bank of Canada maintaining higher benchmark rates throughout 2024 and into 2025, HISAs are offering yields of around 3% to 4% — a significant improvement over the near-zero rates seen just a few years ago.

Many online banks, such as EQ Bank, Tangerine, and Motive Financial, offer competitive rates without monthly fees. HISAs are protected by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per depositor per institution, meaning your money is safe even if the bank fails.

Best for: Emergency funds, short-term savings, risk-averse investors.

2. Guaranteed Investment Certificates (GICs)

GICs are another cornerstone of low-risk investing. In 2025, they have become particularly attractive due to sustained high interest rates. You can find one- to five-year GICs yielding between 4% and 5%, depending on the term and provider.

There are two types of GICs to consider:

• Fixed-rate GICs: Offer a guaranteed return over a set period.

• Market-linked GICs: Returns are tied to stock market performance, but principal is still guaranteed.

It's important to remember that GICs are also CDIC-insured, making them a very low-risk choice. However, locking in your money for multiple years can be a disadvantage if interest rates rise or you suddenly need liquidity.

Best for: Medium-term savings goals, conservative investors, laddering strategies.

3. Government Bonds

Canadian government bonds — whether federal, provincial, or municipal — offer one of the safest investment opportunities available. Government of Canada bonds are backed by the federal government’s credit, making default almost impossible.

In 2025, 5-year Government of Canada bonds are yielding around 3% to 3.5%, depending on the term and market conditions. Investors can purchase bonds directly through platforms like Wealthsimple or through traditional brokerage accounts.

Benefits:

• Predictable interest payments (semi-annually)

• Principal returned at maturity

• Potential tax advantages if held in a TFSA or RRSP

Best for: Those seeking predictable income with minimal risk.

4. Treasury Bills (T-Bills)

Treasury Bills are short-term debt securities issued by the Government of Canada with maturities typically ranging from a few weeks to a year. Unlike bonds, T-Bills do not pay interest but are sold at a discount and mature at their full face value.

In 2025, T-Bills have become popular for Canadians who want to keep their money ultra-liquid while still earning a modest return of around 4% annualized for the shorter terms.

Best for: Parking cash for a few months, conservative investors wanting security and liquidity.

5. Investment Savings Accounts (ISA) via Brokerages

Several brokerages now offer Investment Savings Accounts (ISA) that pay higher interest than traditional bank savings accounts while still being relatively low risk. Examples include offerings from big institutions like RBC Direct Investing or TD Direct Investing.

ISAs are technically mutual funds that invest in cash deposits, and they usually pay out daily interest while offering instant liquidity. They can be a great place to keep money that you plan to invest but haven't allocated yet.

Best for: Investors looking for a safe haven inside their brokerage accounts.

6. Dividend-Paying Blue-Chip Stocks

While stocks are inherently riskier than bonds or GICs, blue-chip dividend stocks like banks, utilities, and telecom companies provide a relatively stable income stream with lower volatility.

In 2025, Canadian giants like Royal Bank (RY), Fortis (FTS), and Telus (T) offer dividend yields in the 4% to 6% range. While stock prices can fluctuate, historically these companies have demonstrated consistent earnings and dividend growth, making them a lower-risk option for equity investors.

Key Tip: Stick to Dividend Aristocrats — companies that have raised their dividends consistently for decades.

Best for: Long-term investors willing to accept moderate risk for higher income potential.

7. Real Estate Investment Trusts (REITs)

REITs offer Canadians exposure to real estate without the need to directly purchase property. In 2025, REITs focusing on residential, industrial, and healthcare sectors are considered more defensive and lower-risk compared to retail or office REITs.

Although REITs are technically equities, the dividend yields — often 5% to 7% — and the tangible asset backing of real estate provide a layer of stability. Options like Canadian Apartment Properties REIT (CAR.UN) or Granite REIT (GRT.UN) are among the safer plays.

Best for: Income-seeking investors comfortable with minor market volatility.

8. Money Market Funds

Money Market Funds are mutual funds that invest in short-term, high-quality debt securities. They aim to maintain a stable value and offer slightly better returns than traditional savings accounts.

In 2025, Canadian money market funds are yielding around 3% to 3.5% after fees — making them a solid choice for parking larger amounts of cash with instant liquidity.

Best for: Conservative investors who want capital preservation with liquidity.

Tax Considerations for Low-Risk Investments

Many low-risk investments generate interest income, which is taxed at your marginal rate. To maximize your returns, consider placing interest-earning investments inside tax-sheltered accounts such as:

• Tax-Free Savings Accounts (TFSA)

• Registered Retirement Savings Plans (RRSP)

• Registered Education Savings Plans (RESP)

Holding investments like GICs, HISAs, and bonds within a TFSA or RRSP can significantly enhance your net returns over time.

Final Thoughts

In 2025, Canadians seeking low-risk investment options have a diverse range of choices, from safe government bonds and insured savings products to dividend-paying stocks and REITs for those willing to accept a bit more volatility.

The key to success lies in understanding your personal goals — whether it’s preserving capital, generating steady income, or achieving moderate growth — and matching those goals with the right blend of investment vehicles.

Above all, diversification remains crucial even in a low-risk portfolio. Spreading your assets across different types of investments can protect you against unexpected changes in interest rates, inflation, or market sentiment.

Low risk doesn’t mean no growth.
With a smart strategy, Canadians in 2025 can achieve peace of mind — and still watch their money steadily grow.