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A Wealthsimple Cash review for 2020

Wealthsimple debuted with a robo-advisor back in 2014 with a relatively simple mission: bridge the gap between Millennials and investing.

They’ve been successful, to say the least. As of this year, Wealthsimple currently manages $5B of Canadians’ money. They’ve also launched their very own online brokerage and purchased a popular no-cost income tax service in the meantime.

Now, Wealthsimple announced that it would further its accessibility with Wealthsimple Cash, a unique hybrid bank account. The spending-savings account combination is making quite the splash, with the potential to redefine the Canadian personal finance landscape.

Featured

0.50%

$25 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$0.00
E-transfer
$0.00

What is a Hybrid Bank Account?

A hybrid bank account is the combination of a high-interest savings account and a spending account.

Hybrid bank accounts, like Wealthsimple Cash, incorporate features from high-interest savings accounts and chequing accounts to create a flexible, all-in-one personal banking product.

You can think of a hybrid bank account as a chequing account with high-interest, or, a savings account with chequing account features.

What is Wealthsimple Cash and how does it work?

Formerly known as Wealthsimple Save, Wealthsimple Cash is a hybrid bank account.

A Wealthsimple Cash account provides a spending account (with unlimited transactions, e-transfers, and deposits), a high-interest savings account (with 0.90% interest on deposits), and a Visa-Debit (that works like a pre-paid, reloadable credit card) in one neat little package. It’s most appropriately described as a pre-paid account.

Account features

Wealthsimple Cash is a one-size-fits-all kind of bank account. Customers can receive their employment earnings through direct deposit, so there’s no rush or pressure to move your savings into an account immediately.

You can also make bill payments using the same account, and transfer your savings into a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) investments.

There’s also a joint account feature upon sign-up, meaning you or someone close to you can both reap the benefits of this virtually limitless account.

Fees

Wealthsimple Cash offers unlimited e-transfers and transactions. That means everything from Interac e-transfers and bill payments to account transfers to point-of-sale transactions. All activities in the account occur at no cost to the user.

The perks of no account fees go above and beyond the average person’s expectations as well. ATM access comes at no additional cost, regardless of what bank’s ATMs you’ll be using. Wealthsimple will reimburse you for the fee charged by the ATM. Of course, the limit caps monthly, but it is indeed a unique and rare customer-friendly feature.

Accessibility

When it comes to convenience, Wealthsimple Cash offers everything a regular bank account does. Customers can do their daily banking using Wealthsimple’s incredibly user-friendly mobile app. There’s also an online platform for finance management. 

You can send free, unlimited Interac e-transfers from anywhere, manage your finances, or make contributions to the account of your choosing—no matter where you are.

But wait, it gets better! Wealthsimple Cash is compatible with Apple Pay and Google Pay.

Though, we doubt you won’t jump at every opportunity to use Wealthsimple Cash’s sleek, tungsten debit card—after all, it’s made of solid metal.

Wealthsimple Cash vs. other hybrid accounts

Wealthsimple Cash might not be the first hybrid bank account in Canada, but it’s undoubtedly the first to offer this much flexibility. Below, we’ll review what Wealthsimple Cash has to offer in comparison to other hybrid accounts currently available, with options from EQ Bank, Manulife, and KOHO.

FeaturesWealthsimple CashEQ Bank Savings Plus AccountManulife Advantage AccountKOHO

IC Savings Perfetto Account

Interest rate0.90%2.00%1.50%0.5% to 2%1.75%
Direct depositYesYesYesYesYes
Interac e-transfersUnlimitedUnlimitedUnlimited with a minimum balance of $1,000Free over $20.00Unlimited with a monthly fee
TransactionsUnlimitedUnlimitedUnlimited with a minimum balance of $1,000UnlimitedUnlimited with a monthly fee
Account FeesNoneNoneUnlimited with a minimum balance of $1,000$0 – $84$9.95 per month, $6.95 per month for seniors
Joint account optionYesNoYes, if Manulife customerYesYes
Apple Pay/Google PayYesN/AYesYesNo
Online platform/Mobile appYesYesYesYesYes
Debit cardYesN/AYesYesYes
Credit card optionYesN/AYesYesYes
ATM reimbursement feesYes, with monthly limitN/ANoNoNo
InsuranceCIPFCDICCDICN/ADICO
Additional PerksRobo-Advisor with TFSA and RRSP optionsInternational money transfers powered by Transferwise Access to the EXCHANGE NetworkCashback on all purchasesPersonal Loan options

Is Wealthsimple Cash safe?

When you open a Wealthsimple Cash account, your funds are held by Canadian ShareOwner Investments INC. a Wealthsimple custodian institution and an insured member of Canada Investor Protection Fund (CIPF) and Investment Industry Regulatory Organization of Canada (IIROC). So, funds held in Wealthsimple Cash are covered by CIPF insurance up to $1,000,000.

Featured

0.50%

$25 first year return based on

$5,000 balance

Monthly fee
$0.00
Transaction fees
$0.00
E-transfer
$0.00

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