Wealthsimple Cash Review

(Editor Rating)

Ranking

9.8/10

Wealthsimple Cash is a saving and spending account that lets you earn interest on your cash deposits. You can use the Wealthsimple Cash card to spend just like a debit card, with no monthly account fees, no low balance fees, and eventually, no foreign exchange transaction fees. After some serious scrutiny, we find that Wealthsimple Cash is an impressive product that’s definitely worth adding to your financial toolbox.

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Fees

10/10

Interest Rate

7/10

Ease of Use

9/10

Tools

8/10



Best for:

 

  • Hybrid spending and savings account
  • Competitive interest rates
  • No account fees
  • Free Interac e-transfers

About Wealthsimple Cash

Wealthsimple Cash is a new financial product offered by Wealthsimple – the FinTech company that’s revolutionized how Canadians invest with its robo advisor and Wealthsimple Trade – Canada’s first and only zero-commission trading platform for stocks and ETFs.

Wealthsimple Cash was recently launched to replace Wealthsimple Save – its former high-interest savings account. Wealthsimple Cash is a saving and spending account that offers a decent everyday rate of 0.90% interest on deposits. It functions like a prepaid Visa card: fund the account in advance and spend only the cash that you’ve deposited. There are no monthly account fees, no low balance fees, and eventually, no foreign transaction fees, making Wealthsimple Cash an excellent choice for spending out of the country.

How Wealthsimple Cash Works

After signing up, simply linking your bank accounts and transfer the funds to your Wealthsimple Cash account. You’ll be put on a list to receive an attractive matte-finish Tungsten metal Visa debit card, which can be used anywhere that Visa is accepted. You can use Wealthsimple Cash card to make withdrawals at ATM’s and use your Wealthsimple Cash account to send Interac e-Transfers or to pay bills with no added-on fees.

One caveat: Wealthsimple Cash is the new kid on the block and some features – such as no foreign transaction fees and the Visa debit card – are still works in progress.

Key Features

Here are the standout features of Wealthsimple Cash:

Account FeesNone
Account minimumsNone
Interest rate0.90%
Fund withdrawal time1 business day
Interac e-TransfersFree
Foreign transaction feesNone*
Joint accountsYes*
Mobile appYes
Apple and Google pay compatibleYes*
*Feature launching soon

  • High-interest rate: Earn 0.90% interest on deposits into your account. This is the everyday rate, not a promo rate that expires!

  • No everyday banking fees: Pay no monthly fees, maintenance fees, or account minimums.

  • Fast and free withdrawals: It only takes 1 business day to withdraw funds. Make as many withdrawals as you like without paying any fees.

  • Awesome app: This sleek app is Apple Pay and Google Pay compatible and ranks as one of the best personal finance apps in Canada.

  • Secure: Wealthsimple Cash uses state-of-the-art data encryption and two-factor authentication

Here are some exciting “coming soon” features:

  • Unique hybrid account: Wealthsimple Cash blends a saving and spending account while offering a competitive 0.90% everyday interest rate. Soon, you’ll be able to use the account to pay bills, set up a direct deposit for your paycheque, and send free Interac e-Transfers®.

  • No foreign transaction fees: Soon you can use Wealthsimple Cash to make purchases in foreign currencies – which should save you a few bucks.

  • Joint accounts: Save with your spouse by opening a joint account.

  • Visa debit card: When you sign up for Wealthsimple Cash you’ll be on the list to receive a Visa debit card so you can make purchases almost anywhere and withdraw money from ATMs across Canada.

  • Free Interac e-Transfers®: Send money instantly to anyone with just a few taps on your app.

Pros and Cons

Pros

  • Competitive interest rates — Earn 0.90% interest on all deposits
  • No account fees
  • Free Interac e-transfers
  • Visa debit card lets you spend anywhere (coming soon)
  • Innovative app that’s Apple and Google Pay compatible
  • No foreign transaction fees (coming soon)

Cons

  • No rewards — No cash back rewards on everyday spending like KOHO or other prepaid cards
  • No RRSP, TFSA, or RESP accounts

How Does Wealthsimple Cash Compare?

Wealthsimple Cash is a prepaid Visa debit card, and it’s not the only one on the scene in Canada. A key competitor to Wealthsimple Cash is KOHO – a free pre-paid, reloadable card and integrated app that gives insights into your daily spending. It also works like a chequing account, but with the benefits of a credit card, such as earning instant cash back on all your purchases.

In some respects, Wealthsimple Cash does not offer as many features or the same level of rewards as KOHO. Here’s a side-by-side comparison of the two prepaid Visa debit cards.

 

Wealthsimple Cash


KOHO


Monthly fee$0$0 - $9 per month
Account minimums$1$1
Deposit interest rate0.90%1.20%
Cash back earnings0%0.5% - 2.0%
Foreign transaction feesNo*No
Visa debit cardYes*Yes

*Feature coming soon

When debating Wealthsimple Cash vs. KOHO, the main difference is you’ll get 0.90% interest on all deposits to your Wealthsimple Cash account, but you won’t earn any rewards for your spending. In contrast, KOHO Save lets you earn 1.20% on your deposits, plus earn between 0.5% to 2.0% cash back for every dollar spent. The cash back rate depends on whether you sign up for KOHO Premium, which costs $9 per month. Other than that key difference, Wealthsimple Cash has a competitive product offering when compared to KOHO and other similar types of products.

Signing Up for Wealthsimple Cash

Like all Wealthsimple products, signing up for Wealthsimple Cash is extremely easy. You can do so either through the main Wealthsimple app (called Wealthsimple Invest and Cash in the App Store), or online via their website. You’ll need the following information at hand during the signup process:

  • Your name, date of birth, and social insurance number
  • Your email address
  • Your home address and phone number
  • Your online banking sign-on information

If you aren’t an existing Wealthsimple Cash member, the process of signing up is simple and boils down to three steps:

Wealthsimple Cash

First, answer questions about your identity and provide your name, birth date, country of citizenship, email address, phone number, home address, employment information. You’ll need to enter your social insurance number at this stage too.

Next, link your bank accounts to Wealthsimple’s interface, which will make transferring funds to your cash account a cinch.

Finally, it’s time to open your cash account. At this point, Wealthsimple will ask whether you want to open a personal or joint account.

Wealthsimple Cash

On the next screen, you’ll be asked to name your account.

Once you’ve named your account, you’ll agree to their terms of service, and then you’re done! Your account is ready to receive funding from one of your linked bank accounts.

Wealthsimple Cash

The entire process of completing the online questionnaire, connecting your bank accounts, and opening the Wealthsimple Cash account takes about 15 minutes. It’s a little more intensive than KOHO or other prepaid Visa debit cards because your account also gives you access to Wealthsimple Invest (the robo advisor).

Learn more about Wealthsimple Cash

Wealthsimple Cash FAQs

No, Wealthsimple is not a bank, and Wealthsimple Cash is not a bank account. The Wealthsimple Cash prepaid Visa card is issued by Peoples Trust Company. Peoples Trust Company is a licensed issuer of Visa International Incorporated.
As of February 2020, Wealthsimple Cash’s Visa debit card is listed as “coming soon” within the next few months. So, you’ll on the list to receive a card as soon as this feature becomes available.
Wealthsimple used to have a high-interest savings account feature called Wealthsimple Save, which allowed you to earn high interest on your deposits. This feature has since been replaced by Wealthsimple Cash. If you previously held a Wealthsimple Save account, your account has automatically been converted to a Wealthsimple Cash account. All new accounts are automatically Wealthsimple Cash accounts.
When you use your Wealthsimple Cash card, Wealthsimple gets a portion of the fee charged by the service provider. Since Wealthsimple is an entirely online company, that fee is enough to cover the costs of your Wealthsimple Cash account.

Final Call: Is Wealthsimple Cash Worth It?

The Wealthsimple Cash account is still a new product, and once the “coming soon” features roll out, the value proposition will become stronger. For instance, once the Visa debit card becomes available to all customers, Wealthsimple Cash will have added functionality and act essentially as a no-fee spending and savings account.

For now, if you’re looking for a place to park your cash that has a decent rate of return and absolutely zero fees, Wealthsimple Cash is a good place to start. Plus, signing up now will put you first in line to take advantage of the new features as they become available. All the benefits considered, Wealthsimple Cash wins a spot on our list as one of the best high-interest savings accounts in Canada.

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