Wealthsimple Cash Review: P2P Payments and High-Interest Savings

Wealthsimple Cash offers Canadians access to high-interest savings and a free peer-to-peer payment platform that makes sending money to friends and family easier than ever.

In addition to its current offerings, there are plans to make Wealthsimple Cash even more versatile in the future with features like free bill payments, Apple/Google Pay, no FX fees on foreign purchases, and a tungsten metal card.

This Wealthsimple Cash review covers what you need to know.

Wealthsimple Cash

What is Wealthsimple Cash?

Wealthsimple Cash is a P2P payment platform you can use to send money to anyone on your contact list within seconds. With the 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 and Wealthsimple Trade. Wealthsimple Smart Savings is no longer being offered to new clients.

About Wealthsimple

Wealthsimple is Canada’s largest and most popular online wealth manager. Founded in 2014, Wealthsimple now has hundreds of thousands of clients and over $8.4 billion in assets under management.

Benefits of Wealthsimple Cash

A Wealthsimple Cash account is not your typical savings account. 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. High-interest rate: It offers one of the best savings rates in Canada at 0.75% (non-promotional) and this rate beats many of the best rates offered by the big banks by 70 basis points (0.70%) or more.

You can read more about the best savings rates in Canada.

2. 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.

Benefits of the account that include features planned for the future include:

3. Free ATM withdrawals: You can use your account to make free bill payments and e-Transfers. In addition, you will be able to withdraw cash from ATMs across Canada for free. Wealthsimple will reimburse any ATM charges up to a limit.

4. No FX transaction fees: The account will waive foreign transaction fees incurred when you make purchases abroad or in foreign currencies. This is easily a saving of 2.5%.

5. A top-of-the-line metal cash card. You will be able to use your tungsten Visa card at ATMs. The card works like a prepaid or debit card.

6. Direct deposit: You can set up your account to directly deposit your paycheque.

7. Apple Pay and Google Pay so you can make payments on the go.

There’s no timeline as to when these features will come online as they have been delayed by the pandemic.

How To Open a Wealthsimple Cash Account

The great thing about a Wealthsimple account is that you can manage a variety of 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, you can sign up here (includes a $25 bonus). The online account opening process takes only a few minutes.

With your account, you can invite as many friends as you want to join and when they sign up, you both get $5.

Is Wealthsimple Cash Safe?

Wealthsimple Cash account deposits are held at a bank that is a member of the Canada Deposit Insurance Corporation (CDIC).

What this means is that your funds are protected by CDIC up to $100,000 should the bank become insolvent.

Wealthsimple Cash vs. Wealthsimple Smart Savings

Wealthsimple Smart Savings was Wealthsimple’s first savings product.

In 2019, Wealthsimple Smart Savings was rebranded as Wealthsimple Save for new clients and was upgraded to Wealthsimple Cash in January 2020.

If you had previously opened a Wealthsimple Smart Savings account, you can open a new Wealthsimple Cash account and transfer your funds over if you so wish.

Some of the differences between Wealthsimple Cash and Wealthsimple Smart Savings are:

Interest Rate: The interest rate for Smart Savings was tiered based on your account balance. The offer by Wealthsimple Cash is a standard rate of 0.75%.

Fees: Wealthsimple Cash has no fees whereas a Wealthsimple Smart Savings account incurred a 0.25% management fee. The posted interest rate for Smart Savings is net of the fee.

GET WEALTHSIMPLE CASH + $25 BONUS

Best Savings Account Rates in Canada

The Wealthsimple Cash app is great for earning interest on your money and for sending and receiving money from your network of friends and family members.

While Wealthsimple Cash beats many of the offers from the big banks, you may be able to earn even more on your savings with an online bank like EQ Bank.

EQ Bank is currently offering a 1.25%* interest rate on savings. It has no monthly account fees and also offers an RSP, TFSA and joint savings accounts.

Sign up for EQ Bank Savings or read our EQ Bank Savings review.

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Wealthsimple Cash Review 2021
4.5

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 its pending features including free bill payments, no FX fees, and a metal card. 

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in the Toronto Star, The Globe and Mail, MSN Money, Financial Post, Winnipeg Free Press, CPA Canada, Credit Canada, Wealthsimple, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO and monitors his credit score for free using Borrowell.

16 thoughts on “Wealthsimple Cash Review: P2P Payments and High-Interest Savings”

  1. Hi Enoch
    Great job you are doing on your blog benefiting us with so much information. My question is related to the quote from your piece below-
    “Note that your funds in Wealthsimple Cash are deposited with Canada’s largest banks. This account created for you at one of the Big-Six banks is not covered by CDIC.”
    How does our funds being covered by CIPF differ from CIDC as it relates to risk tolerance.
    Thanks

    Reply
    • @Iyke:

      Good question. Based on the information provided by Wealthsimple, this is how I believe it works:

      If Wealthsimple should go bankrupt, your assets are protected up to $1 million through CIPF. If the bank that they keep your savings with should become insolvent, you may not be protected because the account created at the bank on your behalf is not covered by CDIC. This is probably the case due to the third-party arrangement in play here.

      That being said, Wealthsimple has clearly stated that funds are kept with Schedule I banks i.e. the largest banks in Canada (e.g. RBC, TD, Scotiabank, CIBC and BMO). The risk of these banks going under is very very small.

      Reply
  2. Hi Enoch,
    I’ve been a reader of your blog for just over a year. I also read many other financial blogs for Canadians, and I must say, it seems like every time I read your articles they are always a little more detailed but still summarized well. You are a great Blogger and I aspire to start my own blog one day because of you. Keep up the good work!

    Reply
  3. Hi,
    Wealthsimple Cash sounds so fantastic. There seems to be a few aspects that keep saying “coming soon” like access to ATM’s and the No Foreign Transaction Fee. Is there a time line? I would like to open an account but I need to be able to get some cash every now and then.

    Reply
  4. I’m brand new to your blog and newish to wealthsimple, where certain answers I can’t find. Will my “cash account” function as a go between for my invest and trade accounts or must transfers go through an external bank. Hope that makes sense, Keith

    Reply
  5. Hello, I really appreciate this indepth review of wealth simple. It was informative and straight to the point. What I would like to know is if this account is open to international students. I am currently waiting in my country of origin to start my semester in the fall at NAIT so I am currently shopping around for banking institutions with the best interest rate over the long term to help pay back my loan in my home country. Is this account available for someone like me and if not what would you recommend in terms of a savings account with a high interest over the long term.

    Thanks again😊

    Reply
    • @Summer: I believe you will need to have landed in Canada with your stamped student visa before you can open a Wealthsimple Cash account. A few other options with some of the best savings rates in Canada are EQ Bank and Motive. That said, I think the same residency/visa rules apply to them as well. Some banks allow you to an account prior to landing (e.g. HSBC), however, the application process can be cumbersome and the savings rates are much lower as of this writing. Hope this answers your question?

      Reply
  6. Is this a « forward-looking » review ? Because following your review, I created a Wealthsimple Cash account. The only thing it can do is send/receive funds to/from others that also have an account and there are precious few of them. Did you actually review the (seemingly inexistant) features you describe ?

    Reply
  7. I signed up a while ago under the expectation set by them that they would have a “debit” card and I could use the account much like any other chequing/savings account. To date, none of that exists and they have slowed down their marketing on these features. I have moved most of my money back out – which takes a couple of days – and will likely close the account shortly. It’s really only for holding funds for their investment side.

    Reply
  8. 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.

    Reply
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