Wealthsimple Cash offers Canadians access to a free peer-to-peer payment platform that makes sending money to friends and family easier than ever.
It also has other interesting features like no FX fees on foreign purchases, cash back on all purchases, Apple/Google Pay compatibility, and more.
This Wealthsimple Cash review covers what you need to know.
How Does Wealthsimple Cash Work?
Wealthsimple Cash is a P2P payment platform you can use to send money to anyone on your contact list within seconds.
With the Wealthsimple Cash app, all you need to do is simply connect your contacts, and you can send them money instantly. Your contacts can send you money, too.
Other accounts offered by Wealthsimple include Wealthsimple Invest, Wealthsimple Trade, and Wealthsimple Save (formerly Wealthsimple Smart Savings).
Benefits of Wealthsimple Cash
A Wealthsimple Cash account is not your typical money transfer app. It will also offer features and perks that are non-standard for a savings or spending account.
The benefits of the account currently include:
1. No monthly account fees: Save on account maintenance fees, which can run up to a couple of hundred dollars when you match it up against a comparable chequing account at a traditional bank. Wealthsimple Cash has no minimum deposit amount.
2. Easy P2P Payments: Sending money to friends on your contacts list has never been easier. You can sync your contacts to see who is already using Cash and check your history to see payments you have made or received.
3. A top-of-the-line cash card. It works like a prepaid or debit card and earns 1% cash back on all purchases. Read my Cash Card review.
4. Save on FX transaction fees: Apart from the currency conversion fee charged by Visa, Wealthsimple does not charge extra fees.
5. Apple Pay and Google Pay, so you can make payments on the go using the Cash Card.
6. ATM withdrawals: You can use your Cash Card to make withdrawals at ATMs. While Wealthsimple doesn’t charge a fee for this transaction, a standard ATM withdrawal fee may be charged by the ATM owner.
7. Direct deposit: You can set up your account to directly deposit your paycheque.
8. E-Transfers: You will be able to make free bill payments and e-Transfers.
9. Earn interest: You earn up to 4% interest on your balance.
Benefits of the account that include features planned for the future as per Wealthsimple include:
10. ATM reimbursements: Wealthsimple will reimburse any ATM charges you pay up to a limit.
How To Open a Wealthsimple Cash Account
The great thing about a Wealthsimple account is that you can manage various accounts using the same login and account details.
The accounts are also available via dedicated apps that make it easy to perform transactions using your smartphone (Android and iPhone).
To open a Wealthsimple Cash account, sign up online. The online account opening process takes only a few minutes.
Is Wealthsimple Cash Safe?
Wealthsimple Cash account deposits are held at banks that are members of the Canada Deposit Insurance Corporation (CDIC).
What this means is that CDIC protects your funds up to a limit should the banks become insolvent.
Wealthsimple Cash vs. Wealthsimple Save
Wealthsimple Smart Savings was Wealthsimple’s first savings product. It was later rebranded as Wealthsimple Save.
Some of the differences between Wealthsimple Cash and Wealthsimple Save are:
Interest Rate: Deposits in the Save account earn a 1.50% interest rate. This interest is calculated daily and paid monthly. Funds in your Cash account earn a higher rate.
Free Transfers and Withdrawals: While both accounts offer free transfers to and withdrawals from your linked bank accounts, peer-to-peer payments are only available through the Wealthsimple Cash app.
Wealthsimple Cash vs KOHO Prepaid Card
The KOHO Mastercard prepaid card is one of the best prepaid cards for earning cash back on purchases and savings interest on your balance. It also comes with a free budgeting app that supports unlimited free Interac e-Transfers.
KOHO Prepaid Mastercard
Rewards: Earn 1% cash back on groceries and transportation, up to 5% unlimited cash back at partner stores in Canada. Get up to 4% interest on your entire balance. Users also get access to a free budgeting app, 0% APR cash advances and free credit score checks.
Welcome offer: $40 sign up bonus after first purchase (use GETCASH promo code during sign-up)
Interest rate fee: N/A
Annual fee: $0*
Best Savings Account Rates in Canada
If you are looking for a competitive savings rate in today’s low-rate environment, you can use Wealthsimple Save or Cash.
You can also look at online banks like EQ Bank. It has no monthly account fees and offers RSP, TFSA, and joint savings accounts.
EQ Bank Personal Account
Earn up to 3.50% interest
No monthly account fees or minimum balance
Unlimited debit transactions and e-Transfers
Free cashback card & no ATM fees
Supports mobile cheque deposits
Learn more about the best savings rates in Canada.
Wealthsimple Cash App FAQs
Wealthsimple Cash is offered by Canada’s most popular online wealth manager. Millions of Canadians use Wealthsimple products, including its robo-advisor service, tax filing software, and stock trading app.
Your cash deposits are held at CDIC-insured banks, which means you are covered up to $100,000 should the banks declare bankruptcy.
When you open a new Cash account using the referral link or code above, you may get a cash bonus.
The best Wealthsimple Cash app promo code for getting a sign-up bonus is E0U3RG. When you open a Trade account and deposit $150, you receive a $25 bonus.
No. Your deposits are kept at a partner bank, and you can pay friends directly from the account. However, you can’t write a cheque, and ATM withdrawals are not yet available.
The maximum daily spending limit for the Wealthsimple Cash Card is $5,000, and $1,000 for ATM withdrawals.
Wealthsimple Cash Review
Overall
Summary
Wealthsimple Cash is a free peer-to-peer payment platform for sending money in Canada and earning one of the best high-interest savings rates. This Wealthsimple Cash review covers how it works and pending features including free bill payments, no FX fees, and how to earn cash back.
Pros
- Free p2p money transfers
- No monthly fees
- Access to a prepaid Mastercard
- Access to a savings account
Cons
- Does not replace your chequing account
- Does not support Interac e-Transfers
Pretty much none of these features are available, been waiting for this for almost 2 years and … nothing.
Enoch,
I am wondering if you know how the new WS cash app settles transfers so quickly with P2P transactions? When I send $5 it takes less than 5 seconds to show up in my friends “wallet”.
Is it misleading us by just showing the amount in the app? Or are they using a blockchain companies asset to settle/transfer so quickly? Hard question I know lol sorry.
@Chris: I’m not sure how they process the transfer, other than that it pretty much occurs instantly!
Hi, thanks for this article, nevertheless, I’ve been customer with Wealthsimple cash for a month now, and the ONLY thing I can do with the account is peer-to-peer transfert, and that’s it ! (Actually I can’t really do it since the recipient as to be Wealthsimple customer too)
Everything else : card, e-transfert, pay a bill, apple-pay is NOT THERE AT ALL !!!
Sadly as much as Wealthsimple seems to have a nice project, in the end it looks like a pyramid scheme : they want us to refer friends to build the peer-to-peer community, the saving rate being the carrot.
Can a wealthsimple account be denominated in USD?
@Saverio: Not at this time.