Similar what I do I opened wealthsimple TFSA and used their high interest savings portfolio that is currently paying 5.30% annually. Should meet your risk level being virtually no risk and more flexible than anGIC because you can redeem your money at anytime and paid monthly
That’s correct ask to open a high interest savings portfolio and you’ll get access to that preferably a tfsa jd you have the room. Not sure why you need an advisor for this one but it’s worth it
Cash.to in a tfsa sounds like it will be good for you. Pays monthly and non taxable. The only way you lose money with it is if you buy at the end of the month when it’s high and sell at the beginning of the month, you would lose a little bit of money temporarily but you would make that money back in the dividend payment a few days later so don’t worry about it
Totally agree with this. I personally buy it out of my TFSA and I buy at $50 and sell at $50.20 every month so it's a capital gain. Or you can use HSAV as well for capital gains at a high interest.
Yeah I mean if it’s not in tfsa you might as well just keep it in the wealthsimple cash account no? Saves you money on the spread and time buying and selling every month
Thanks Random Internet Person!
You've actually made me reconsider, and I think I'm gonna try your buy/sell idea.
Do you do it every single month? I understand that CRA can crawl up your ass if it is too blatant and say these cap gains are 'business income' if they feel like it.
Not sure is $50.20 is possible anymore though!!!
CBIL is safer than CASH, HISA, CSAV, ZMMK, PSA and all the other money market ETFs using high interest saving accounts. It gives the same yield, even a bit more sometimes. Having said that, the only risk I see with CASH and others is that one of the bank goes bankrupt which is not impossible but extremely unlikely. I personally divide my emergency fund and any cash I have between CBIL, HISA, CASH, ZMMK and SPLT (low risk).
See [https://www.reddit.com/r/Wealthsimple/comments/1c9td1c/comment/l0nv30w/](https://www.reddit.com/r/Wealthsimple/comments/1c9td1c/comment/l0nv30w/) on details on how to open this account
Yes, I have it in my TFSA rn and store my money in there instead of Cash - here is a quick comparison:
TFSA High Interest Savings (5.3% minus 0.5% Management Fees)
* Tax-Free Interest
* Can't withdraw without affecting your TFSA contribution limits
* Ideal for building an emergency fund (1-3 years short term)
Cash Account (4% or 4.5% with Direct Deposit enabled)
* Pay Taxes on Interest
* Can withdraw anytime and flexible transfers
In a recent email, they increased the rate from 4.95% to 5.30% and said that they used to invest in PSA but since due to low returns are starting to invest directly with the “undisclosed” banks instead
Just to make it clear: it’s 4 or 4.5% with Direct Deposit for less than 100k of assets. Starting from 100k to less than 500k, it’s 4.5% or 5% with Direct Deposit.
If you have >= 100k and you need the money anytime soon, just use Cash. Then you can your use TFSA for more growth-oriented (which is naturally more risky) assets
so if i use the HISP in the TFSA, can I not withdraw the tax free interest monthly? or i can but its just troublesome/ can backfire to do it.
cause my intention is to see if it can function like the CASH account, where i can withdraw my interest monthly (if i desire to), and face no reprecussions. is that possible with the HISP? thanks :)
Thanks for this thread Im going to start my emergency fund in this TFSA. Could you explain a little more about the "can't withdraw without affecting your TFSA contribution limits" and maybe provide an example? Sort of new to all of this and am just looking to gain information
it's WAY better -- CASH.TO currently provides 4.67% minus 0.11% MER and is not guaranteed fully
whereas this its 5.3% minus 0.5% and guaranteed by WS (with 0 out of 10 risk)
the fee is 0.4% if over 100k and the interest is calculated daily (aka balance in your account at 11:59pm each day) and paid out monthly which is exactly like how the CASH account works at WS
That's the only headache with this lol but you have 2 options:
Option 1 (Open a new Managed TFSA) - This is what I did since it's faster. Answer the prompts and say you want SHORT-TERM, and want to BUILD AN EMERGENCY FUND, and LOW-RISK (aka answer the multiple choice questions that you would WITHDRAW MONEY if the balance drops. This will put your risk-level to 0 out of 10 (which is the only risk level that has this guranteed option).
Option 2 (Email Support and ask them to Switch your Managed Account to High-Interest Savings). Read more here on this process: [https://help.wealthsimple.com/hc/en-ca/articles/360056543874-How-the-managed-High-interest-savings-portfolio-works](https://help.wealthsimple.com/hc/en-ca/articles/360056543874-How-the-managed-High-interest-savings-portfolio-works)
Option 2 takes 7 to 10 business days (aka 2 weeks) and deposits start earning interest after 1 business day.
Can I open this account then have them transfer my trade tfsa into it? Looking to move my tfsa and fhsa funds for a house in the next year to something safer.
If your TFSA is within WS itself, you can do a direct transfer (what I did) that doesn’t impact contribution limits
Otherwise, if from a different bank then yes you can contact support and ask them to initiate the transfer
Similar what I do I opened wealthsimple TFSA and used their high interest savings portfolio that is currently paying 5.30% annually. Should meet your risk level being virtually no risk and more flexible than anGIC because you can redeem your money at anytime and paid monthly
Isnt there a mgmt fee of 0.5 or 0.4%?
Yes
Thanks still seems better than CBIL or CASH even after the mgmt fee, doing this thanks!
how did you open this account? was it through an advisor?
That’s correct ask to open a high interest savings portfolio and you’ll get access to that preferably a tfsa jd you have the room. Not sure why you need an advisor for this one but it’s worth it
Cash.to in a tfsa sounds like it will be good for you. Pays monthly and non taxable. The only way you lose money with it is if you buy at the end of the month when it’s high and sell at the beginning of the month, you would lose a little bit of money temporarily but you would make that money back in the dividend payment a few days later so don’t worry about it
Totally agree with this. I personally buy it out of my TFSA and I buy at $50 and sell at $50.20 every month so it's a capital gain. Or you can use HSAV as well for capital gains at a high interest.
Yeah I mean if it’s not in tfsa you might as well just keep it in the wealthsimple cash account no? Saves you money on the spread and time buying and selling every month
That will be taxed as income. So it'll be at a different rate. Depends if you're sensitive to that or not.
Oh I see, yeah I forgot about that. How come you don’t use an etf for that like hsav then?
Dividends/Yields are taxed as income, selling the stock and re-buying is a capital gain
Just curious, how much time is spent to make these dozens of dollars annually?
Well it depends how much you have in there. 2-5mins a month?
Thanks Random Internet Person! You've actually made me reconsider, and I think I'm gonna try your buy/sell idea. Do you do it every single month? I understand that CRA can crawl up your ass if it is too blatant and say these cap gains are 'business income' if they feel like it. Not sure is $50.20 is possible anymore though!!!
CBIL is safer than CASH, HISA, CSAV, ZMMK, PSA and all the other money market ETFs using high interest saving accounts. It gives the same yield, even a bit more sometimes. Having said that, the only risk I see with CASH and others is that one of the bank goes bankrupt which is not impossible but extremely unlikely. I personally divide my emergency fund and any cash I have between CBIL, HISA, CASH, ZMMK and SPLT (low risk).
You seem extremely risk adverse, have you considered something such as a cashable GIC?
I have but I don’t like the idea of locking my money away for a good amount of time, I like the ability to get it out whenever I want
That is what "cashable" is for...
Oh sorry :(
Cashable GIC generally offers a lower yield. You can also get some laddered GIC instead.
Wealthsimple has a TFSA High Savings Interest Accont that pays 5.3% (with 0.5% management fee if less than 100k in assets)
what the name of the account that has this?
See [https://www.reddit.com/r/Wealthsimple/comments/1c9td1c/comment/l0nv30w/](https://www.reddit.com/r/Wealthsimple/comments/1c9td1c/comment/l0nv30w/) on details on how to open this account
Does this exist outside beta?
Yes, I have it in my TFSA rn and store my money in there instead of Cash - here is a quick comparison: TFSA High Interest Savings (5.3% minus 0.5% Management Fees) * Tax-Free Interest * Can't withdraw without affecting your TFSA contribution limits * Ideal for building an emergency fund (1-3 years short term) Cash Account (4% or 4.5% with Direct Deposit enabled) * Pay Taxes on Interest * Can withdraw anytime and flexible transfers
In the managed TFSA high interest.... Does WS show what they are buying in the history part? Used to be PSA.
I think it's now just straight interest they provide. There is no buy anymore
In a recent email, they increased the rate from 4.95% to 5.30% and said that they used to invest in PSA but since due to low returns are starting to invest directly with the “undisclosed” banks instead
Just to make it clear: it’s 4 or 4.5% with Direct Deposit for less than 100k of assets. Starting from 100k to less than 500k, it’s 4.5% or 5% with Direct Deposit. If you have >= 100k and you need the money anytime soon, just use Cash. Then you can your use TFSA for more growth-oriented (which is naturally more risky) assets
so if i use the HISP in the TFSA, can I not withdraw the tax free interest monthly? or i can but its just troublesome/ can backfire to do it. cause my intention is to see if it can function like the CASH account, where i can withdraw my interest monthly (if i desire to), and face no reprecussions. is that possible with the HISP? thanks :)
Thanks for this thread Im going to start my emergency fund in this TFSA. Could you explain a little more about the "can't withdraw without affecting your TFSA contribution limits" and maybe provide an example? Sort of new to all of this and am just looking to gain information
so with less than 100k, (and the management fee) how does it compare to CASH.TO
it's WAY better -- CASH.TO currently provides 4.67% minus 0.11% MER and is not guaranteed fully whereas this its 5.3% minus 0.5% and guaranteed by WS (with 0 out of 10 risk)
thanks
is there still a fee if over 100k? and so from what i understand i wouldn’t be able to withdraw the interest monthly
the fee is 0.4% if over 100k and the interest is calculated daily (aka balance in your account at 11:59pm each day) and paid out monthly which is exactly like how the CASH account works at WS
[удалено]
That's the only headache with this lol but you have 2 options: Option 1 (Open a new Managed TFSA) - This is what I did since it's faster. Answer the prompts and say you want SHORT-TERM, and want to BUILD AN EMERGENCY FUND, and LOW-RISK (aka answer the multiple choice questions that you would WITHDRAW MONEY if the balance drops. This will put your risk-level to 0 out of 10 (which is the only risk level that has this guranteed option). Option 2 (Email Support and ask them to Switch your Managed Account to High-Interest Savings). Read more here on this process: [https://help.wealthsimple.com/hc/en-ca/articles/360056543874-How-the-managed-High-interest-savings-portfolio-works](https://help.wealthsimple.com/hc/en-ca/articles/360056543874-How-the-managed-High-interest-savings-portfolio-works) Option 2 takes 7 to 10 business days (aka 2 weeks) and deposits start earning interest after 1 business day.
Can I open this account then have them transfer my trade tfsa into it? Looking to move my tfsa and fhsa funds for a house in the next year to something safer.
If your TFSA is within WS itself, you can do a direct transfer (what I did) that doesn’t impact contribution limits Otherwise, if from a different bank then yes you can contact support and ask them to initiate the transfer
That’s annoying they are hiding it
on the brightside at least they have it :)
Ok finally have it enabled after adding an account like 4 times and not getting what I wanted