Invest your managed account in a high-interest savings portfolio

Managed Wealthsimple accounts are designed to automatically invest any funds you add to an investment account. However, there may be times when you want to reduce your exposure to market forces and avoid any losses. In this case, moving your funds to a High-Interest Savings Portfolio might be a good choice.

A High-Interest Savings Portfolio is a fund that stores your money in savings accounts across Canadian banks. Unlike guaranteed investment certificates (GICs), there is no minimum holding period and you can access your funds at any time.

Wealthsimple uses the Purpose High Interest Savings Fund (trading as PSA) as our High-Interest Savings Portfolio, however we may use alternative savings funds in some cases.

Tip: This option is ideal for emergency funds or for clients who plan to withdraw the majority of their funds from a particular account in the near term - generally within the next 3 years. For example, if you're planning to use your RRSP for a homebuyer's plan or need the funds in your RESP to fund your children's education in the short term, this may be a good option.

To open a Personal, TFSA, RRSP or RESP account that is invested in a High-Interest Savings Portfolio, follow these steps:

Log in to your Wealthsimple mobile app
Tap the Discover tab (search icon) at the bottom of your screen
Under Featured investments, tap High interest savings portfolio
Select Open a new managed portfolio and follow the prompts to set up your account

If you already have an existing managed account that you want to move into a High-Interest Savings Portfolio, you can also do so from the Wealthsimple app. First, open a new High-Interest Savings Portfolio by following the steps above. Then, follow the steps below to move your existing account over:

Log in to your Wealthsimple mobile app
Tap the Dollar sign at the bottom of your screen
Select Move funds
Tap Transfer
Select the account that you wish to move into a High-Interest Savings Portfolio under From
Select the High interest savings portfolio under To
Follow the prompts to finish transferring your account

To move an account other than a Personal, TFSA, RRSP or RESP, please contact our support team. They will help you get in touch with one of our Portfolio Managers to make this change for you.

Note: Moving an existing managed account into a High-Interest Savings Portfolio can take 7-10 business days.

Frequently asked questions

What are the fees for investing in PSA?

Our standard fees apply. Wealthsimple’s standard management fee is 0.5%. For accounts over $100,000, this fee drops down to 0.4%. To learn more about fees, click here.

What kind of interest does PSA pay?

You can find the yield (or the interest it pays) and more information about the fund here. Remember that you will be charged Wealthsimple’s management fee when you hold this kind of portfolio.

Can I also invest in this ETF in a non-registered (personal) account?

Yes, you can invest in the High-Interest Savings Portfolio in a non-registered account (or any other account type).

Why does PSA decrease in value at the end of each month?

The price of PSA goes up throughout each month as the fund earns interest on their holdings. At the end of the month, PSA takes the interest it has earned and issues it to shareholders as a dividend. This makes the value of the fund dip, however, the dip is offset with an interest payment once the dividend arrives in your account This results in a predictable decrease in the price of PSA each month, which you can see reflected on this chart.

When are dividends paid out by PSA?

You'll receive your monthly dividend as a cash payment a week or so after the dividend payment date set by PSA.

Frequently asked questions

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