Wealthsimple Review 2024: Investments And High Interest On Accounts, In One Place

Though Wealthsimple (WS) is well known for its no-commission trading platform, the Canadian investment service is branching out into banking offerings.

WS focuses on offering an innovative experience through tiered interest rates with its cash account, and a robust selection of self directed/managed investment accounts (e.g. RESPs, RRSPs). To boot, its business account has a respectable interest rate of 1.1%, with no minimum balance required.

Chequing Accounts

Currently, Wealthsimple offers a single chequing account: the Cash account. WS’s uses a tiered interest system that gives you 4% interest with no minimum balance. You’ll earn more interest (4.5%) if you have a balance of more than $100,000. If you have a balance of more than $500,000, you’ll earn 5% interest. The account also boasts no fees, no minimum balances, no overdraft penalties and the ability to transfer up to $5,000 per day with Interac e-Transfer.

Note that customers who open a cash account receive a Wealthsimple Cash card (a prepaid credit card) that earns 1% cashback in the form of cash to invest or cryptocurrency.

Savings Accounts

Wealthsimple offers a few savings accounts for individuals and businesses.

Its Wealthsimple Save account is your typical savings account with a fixed interest rate of 1.5% and an identical no-fee structure. The account is also offered as a joint account for consumers looking to combine their finances.

WS extends its products to corporations as well, with the Business Save and Business Invest accounts. The savings account comes with a modest 1.1% interest rate, though it carries no fees and no minimum balance requirement. Businesses can invest in a custom, low-fee portfolio of exchange-traded funds (ETFs). Note that business invest accounts do not have the option to self-direct their investments, thus this investment account carries management fees of 0.40% to 0.50%—depending on your total assets.

In addition to its individual, joint and business accounts, the company provides numerous registered savings account options that can be self-directed or managed by WS. Spousal RRSPs, RESPs and LIRAs are only available as managed investing accounts. Conversely, TFSAs and RRSPs can be self-directed or managed.

GICs

Currently Wealthsimple does not offer guaranteed investment certificates (GICs).

In addition to their core offerings, the Canadian brand does not extend their product reach much further. They offer additional banking and investment products such as:

• Wealthsimple Cash card with 1% cashback
• Unique cash handle for cash transfers in the app
• Crypto trading account options
• Group RRSPs for employees
• Private credit investing for customers with over $100,000 invested in WS

As an online-only institution, Wealthsimple offers a variety of digital features for their products. Customers can easily access their accounts, or open new ones, and reach support through the app or on the web.

Clients looking for help can access WS’s vast online help centre, chat with a virtual assistant 24/7 (or a person during 8 a.m. to 8 p.m. EST) or call their helpline (1-855-255-9038).

Observing the Wealthsimple app specifically, we noted that users can access a myriad of functions:

• Review account history
• Edit recurring investments
• Pay using the cash digital card
• Deposit, transfer and invest funds in various accounts
• Open new accounts
• Explore investing options
• Track portfolio activity

Now that you know the details of Wealthsimple’s banking products, let’s see how they stack up against other online-only banking competition and more traditional brick-and-mortar banks.

Wealthsimple vs. EQ Bank

Both of these online services offer no fees and somewhat similar range of products—though EQ Bank rises above when it comes to GICs and high-interest savings accounts. That being said, Wealthsimple’s cash account, so long as the direct deposit feature is utilized, outperforms EQ’s 2.5% interest rate. Some customers may view that as a big “if”, however.

Where EQ’s services exceed WS’s is with their similar prepaid cards. WS’s Cash card offers 1% cash back with standard ATM fees. EQ’s card has no ATM fees, 0.5% cashback and any balance gains 2.5% interest; no strings attached.

Wealthsimple vs. Simplii Financial

Though the CIBC division matches WS with a no-fee structure, it lags behind in terms of interest rates. Their chequing account offers a maximum interest rate of 0.10%, which is dwarfed by Wealthsimple’s lowest 1.0% rate. Additionally, Simplii’s savings account only approaches WS’s 1.5% after a customer places over $500,000 in the account.

On the other hand, Simplii has much more to offer in the way of features. They provide their clients with access to credit cards, mortgages, lines of credits, mutual fund investment opportunities and a plethora of account types. Note that Wealthsimple does offer corporate banking opportunities where Simplii does not.

Wealthsimple vs. Tangerine

As compared with Simplii Financial, Wealthsimple provides a better interest rate when matched against Tangerine’s core chequing account offering: the No-Fee Daily account. It comes in at a maximum of 0.10% interest. Tangerine’s savings accounts also slightly fall behind WS’s, coming in at 0.70%. Note that Tangerine’s TFSA and RSP accounts do accrue interest at the same rate, whereas Wealthsimple’s registered accounts are used for investing purposes.

As noted in other comparisons, Wealthsimple’s lack of GICs and diverse banking options is also clearly seen when compared to this online bank. Yet, WS’s investment fees are lower than Tangerine’s ETF portfolios.

To create this list, Forbes Advisor compared 46 nationally available banks—both traditional brick-and-mortar institutions and online-only banks—to find the best options available. To make this list, the bank had to be available to Canadians nationwide. They were rated out of five stars according to the following data points and formula out of 100%:

Wealthsimple’s approach is honed in on customer utilization. For consumers that use its products (such as their investment accounts) regularly, WS’s banking options, ostensibly, are a natural fit given the benefits incurred. Customers that deposit over $100,000 throughout the platform have access to lower investments management fees and higher interest rates, for example.

Conversely, customers that are looking to do all of their banking in one place, or desire more banking products (e.g. GICs, lines of credit, mortgages) are better served with other institutions.