Wealthsimple is an online investment company that introduced passive investing with digital advisors and is now known as Canada’s largest “robo” advisor. Since launching in 2014, Wealthsimple now boasts over 5 billion dollars in assets that it manages while providing a host of other services, including tax preparation and cash accounts.
This year, Wealthsimple launched “Wealthsimple Cash,” a high-interest savings account (HISA) that allows Canadians to slowly grow their savings in an online account without having to deal with the slim interest rates and high banking fees that the average big bank offers. Consumers also have the benefit of using their cash accounts as chequing accounts for spending, making this account a mix of both chequing and savings. You can use your account as a spending account that also allows you to earn interest on your deposits.
Let’s dive deeper into this interesting and innovative banking option to help you make an informed decision about whether or not to park your capital with Wealthsimple.
What Accounts Does Wealthsimple Cash Offer?
Wealthsimple Cash offers a cash account, but investment and trade accounts are also available through Wealthsimple and can be linked.
- No monthly fees
- No low-balance fees
- No foreign exchange transaction fees (coming soon)
- Earn 0.9% interest
- Wealthsimple Cash Card allows for easy everyday spending
- Withdraw cash from ATMs across Canada
- Instantly send money with e-transfers and bill pay
- Encryption and two-factor authentication keeps your money and information safe
- Backed by some of the largest financial institutions in the world
- Accounts are held with Canadian ShareOwner, a custodial broker
- Accounts are protected within specified limits by the Canadian Investor Protection Fund (CIPF)
- Diversify your investments
- Low-fee funds
- Reach your financial goals
- Money is invested in the stock market using Exchange Traded Funds (ETFs)
- Choose a risk level you’re comfortable with
- Build a custom investment portfolio
- Make automatic contributions
- Dividend reinvestment to earn you more
- Automatic rebalancing as the market changes
- Manage your accounts from anywhere
- Make a purchase with your debit or credit card and Wealthsimple will round it up to the nearest dollar to help you build wealth
- Automatically invest extra cash
- Choose the amount you want to keep in your bank account
- Move extra funds into a Wealthsimple Invest account once a month
- Reminders sent so you can skip your deposit when you need more cash on hand
- No commissions charged to trade stocks
- No account minimum
- Buy and sell stocks and ETFs on major exchanges using the mobile app
- Search and track stocks with a watchlist
Pros And Cons Of Wealthsimple Cash
- Hybrid savings and spending accounts. The flexibility that Wealthsimple Cash offers thanks to its mix of both chequing and savings features makes this a truly unique and convenient account.
- High-interest rates. You can earn 0.90% on your cash deposits, a standard rate that will never expire.
- No monthly fees. You won’t see any pesky fees pop up in your account every month.
- No minimum amounts. No fees will be charged to you for not maintaining a certain minimum account amount.
- Debit/credit card access. You’ll get a card that works like a prepaid, reloadable credit card to use for purchases.
- Free Interac e-transfers. Transfer money from your account to another’s with no fees.
- Quick and free withdrawals. Withdraw your funds in as little as 1 business day and make as many as you like without incurring any fees.
- Convenient app. The Wealthsimple Cash app is easy-to-use.
- Security. Your personal information is safe with Wealthsimple Cash thanks to the robust data encryption and two-factor authentication.
- Use as a joint account. Unlike some online banking platforms, Wealthsimple Cash allows accounts to be used jointly with another person.
- One-stop-shop. Hold all of your accounts in one convenient spot and keep all your financial products together.
- Integrated accounts. All Wealthsimple accounts are fully integrated so you can seamlessly transfer money from your cash account to an investment account.
- Wealthsimple Black status. All the money held in your Wealthsimple accounts goes toward the $100,000 account balance required for you to achieve ‘Wealthsimple Black’ status, which comes with perks like lower management fees, dedicated financial management, and complimentary airport lounge access.
- Interest rate of 0.90% is not as high as what other online banks are offering
- Cannot be used to hold funds within a TFSA or RRSP account
Overview of Accounts
Wealthsimple Cash Cash Accounts
|Feature||Wealthsimple Cash Cash Accounts|
|Foreign Exchange Transaction Fees||None (coming soon)|
|Mobile App Option||Yes|
|Debit Card Option||Yes|
|Joint Account Option||Yes|
|Special Features||-Encryption and two-factor authentication |
-Accounts are held with Canadian ShareOwner
-Accounts are protected CIPF (within certain limits)
Wealthsimple Investment Accounts
|Purchase with your debit or credit card totals will be rounded up to the nearest dollar||-Automatically invest extra cash|
-Keep as much in your account as you need
-Move extra funds into an investment account
-Get reminders sent to skip your deposit when you need extra cash in your account
Wealthsimple Cash Trade Accounts
|Commissions to trade stocks||None|
|Mobile App Option||Yes|
|Watchlist For Stocks Option||Yes|
What Customer Support Does Wealthsimple Cash Have Available?
Wealthsimple does not have the most contact channels. They include the following:
- By phone: 1-855-255-9038 between 9 am – 6 pm (EST), Monday through Thursday, or between 9 am – 5:30 pm Fridays.
- By creating a request ticket.
How to Open an Account With Wealthsimple Cash
Signing up for an account with Wealthsimple Cash is simple and only takes a few minutes. It can be done either online or via the Wealthsimple mobile app. Just follow the prompts and input pieces of your personal information, like your name, birth date, address, and SIN to help verify your identity. You’ll also have to input your banking information from an outside bank that will be used to link to your Wealthsimple Cash account to fund it.
Your account will be active within a few days after submitting your application. You’ll also receive a metal credit-debit card that you can use to make purchases anywhere that Visa is accepted and withdraw cash at ATMs.
Is It Safe to Bank With Wealthsimple Cash?
The funds in your Wealthsimple Cash account are held by Canadian ShareOwner Investments, a custodian institution that is insured by the Canada Investor Protection Fund (CIPF). That means up to $1 million in funds held in Wealthsimple Cash accounts are protected by CIPF insurance.
Who Is Best Suited For Online Banking With Wealthsimple?
Wealthsimple Cash is great for those who:
- Want a convenient way to bank online.
- Like having access to a debit card that works much like a prepaid credit card to make purchases and withdrawals.
- Want an easy way to bank online while linking their investment or trade accounts.
- Want an innovative way to trade stocks and invest in major exchanges.
- Don’t want to pay monthly fees on deposits.
Wealthsimple Cash truly is a unique and innovative banking platform that also allows you to invest your hard-earned capital with just a few clicks on your mobile phone. It employs the use of robo advisors to help you make the right banking and investing decisions and offers a unique spending-saving hybrid account. There are also a few “coming soon” features that should make the platform even more convenient and worth the consideration.
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