Current Yield (as of Oct 25, 2024):

Accounts held at CI Investment Services: 3.45% per year *

Accounts held at Aviso Wealth: 3.45% per year *
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* Rounded to the nearest 0.05%. The yield is before advisor and the minimum account fee if applicable as detailed below.
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The High Interest Savings Portfolio (HISP) is a great option for short-term savings, offering a great alternative to keeping cash in a bank account with little to no interest. However, it's important to note that it differs from a traditional savings account at a bank or credit union.
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For accounts held at Aviso Wealth, the ModernAdvisor High Interest Savings Portfolio (HISP) is invested in interest-bearing cash. For accounts at CI Investment Services, the HISP is invested in the Purpose High Interest Savings Fund (PSA), an ETF that trades on the Toronto Stock Exchange.

Since PSA trades on the stock exchange it's price fluctuates from day to day and it can go down as well as up; but over the month the price increases as the interest accrues. On the ex-distribution date the price resets to 50.00; the distribution of the interest is generally paid 5 business days after that. There will be a drop in the value of the client account between the ex-distribution and the distribution payment date of the ETF.

Below is a 1 year chart of its performance showing the increase in the price during the month as interest is accrued and then drops as the distribution is made.

Since the HISP invests in a publicly traded security it is subject to a trade settlement period. PSA has a T+1 trade settlement (unlike stocks and most ETFs that are T+2) which means if you sell it on a Tuesday, the cash is available to withdraw from your account on Wednesday.

PSA maintains deposits at Canadian Schedule 1 banks (think CIBC, TD, Scotiabank, National Bank) that pay interest. The interest rates paid on these accounts fluctuate with the Bank of Canada's benchmark interest rate.

ModernAdvisor management fees are 0.20% per year + GST or HST, depending on the client's province of residence. A minimum management fee of $2.5/month applies to RESP accounts, while a $5/month fee applies to non-RESP accounts. The per-account minimum fee is waived if the management fees on other client accounts exceed the minimum fee.

A Service Fee of up to 0.2% + GST or HST, depending on the client's province of residence, can be charged by the referring financial planner or advisor.

All account types offered by ModernAdvisor can select the ModernAdvisor High Interest Savings portfolio. These include non-registered, TFSA, RRSP, RESP, RDSPs, RIF, LIF, LIRA, and corporate accounts.

There are no fees to withdraw funds from the High Interest Savings Portfolios. However, a de-registration fee may apply to withdrawals from certain registered accounts.

There are no contribution and withdrawal limits specific to the High Interest Savings Portfolios. Account specific limits apply regardless of the investment option selected inside the account.