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.
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.
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 here.
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 $5 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. I reviewed the account here.
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.
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 1.50%* interest rate on savings. It has no monthly account fees and also offers an RSP, TFSA and joint savings accounts.
Wealthsimple Cash Review 2021
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.