Wealthsimple Cash has undergone some significant changes recently. For those unfamiliar, it’s essentially a savings account that functions like a checking account, managed by Wealthsimple. Known for offering some of the highest interest rates in the industry, the funds are insured by the CDIC.

As a relatively new product, Wealthsimple Cash is constantly evolving to meet customer needs. Let’s dive into the recent updates and see how they impact users.

CDIC Coverage Boost

One of the standout updates is the increase in CDIC coverage from $300,000 to $500,000. This change highlights Wealthsimple’s competitive edge over traditional banks, which typically offer only $100,000 in CDIC coverage.

It’s important to note that Wealthsimple isn’t a bank but a fintech company. Your deposits are actually held in regulated Canadian financial institutions, ensuring that the $500,000 coverage is legitimate and secure.

This increase in coverage provides peace of mind for customers, allowing them to keep more funds in their Wealthsimple Cash accounts and transfer money swiftly to trading accounts when needed.

Interest Rate Adjustments

While there’s good news, there’s also a downside. Recently, Wealthsimple Cash dropped its interest rates by 0.5%. Previously, rates were as high as 5% for certain clients. This change aligns with the Bank of Canada’s recent interest rate cuts.

Despite the reduction, Wealthsimple Cash still offers competitive rates compared to other high-interest savings accounts in Canada. It’s important to remember that such rate adjustments are often industry-wide, not just isolated to Wealthsimple.

Wealthsimple Cash Card Enhancements

On a positive note, the Wealthsimple Cash card now offers ATM fee refunds for withdrawals within Canada. This is a significant addition, making Wealthsimple one of the few providers, alongside EQ Bank, to offer such a benefit.

These refunds are processed within four business days, adding convenience for users. The card also provides a 1% cashback on purchases, further enhancing its appeal over competitors.

Pros of Wealthsimple Cash & Save

Let’s dive into the advantages of Wealthsimple Cash, which make it a compelling choice for many users.

• Cashback on Spending: With a minimum of 1% cashback on all purchases, Wealthsimple Cash offers a straightforward reward system. Users can opt to receive cashback in cash or direct it towards their Wealthsimple Trade or crypto accounts.
• High-Interest Savings: Your money doesn’t just sit idle; it earns interest, providing a dual benefit of savings and spending.
• E-Transfers: The ability to send and receive e-transfers from anyone is a convenient feature, making transactions seamless and efficient.
• No Fees: The card comes with no monthly or annual fees, which is a significant advantage over many traditional banking products.
• Free Sign-Up Bonus: By using a referral link, new users can receive a $10 bonus, which is a nice incentive to get started.

The design of the card itself is quite appealing. Although it’s plastic and not the metal, matte black I dream of, it still manages to make a statement.

Cons of Wealthsimple Cash & Save

No product is without its drawbacks, and Wealthsimple Cash is no exception. Here are some areas where it falls short:

• No Mobile Cheque Deposit: Like many fintech products, Wealthsimple Cash does not support mobile cheque deposits, which can be a hassle for some users.
• Lack of Credit Options: As a prepaid card, it doesn’t offer a line of credit, which means it won’t help you build your credit score.
• Limited Savings Features: Compared to competitors like Koho, Wealthsimple Cash lacks multiple savings accounts and features such as round-up savings or automatic savings plans.
• App Confusion: Although the app is visually appealing, the process of integrating all services into one platform is still ongoing, leading to some confusion.

Wealthsimple Cash is not ideal for those looking to build credit or those who require a more comprehensive savings tool. Its simplicity is both its strength and its limitation.

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