Wealthsimple Cash: A free alternative to traditional chequing accounts

Wealthsimple is an investment management company founded in 2014 in Canada. It offers five different financial services: Wealthsimple Investments, Wealthsimple Cash, Wealthsimple Trade, Wealthsimple Crypto and Wealthsimple Tax.

Their recently enhanced Wealthsimple Cash product offers a hybrid between a checking account, a savings account and a prepaid credit card with rewards. Let’s explore its features in detail.

Wealthsimple Cash is much more than just a bank account. It’s a comprehensive financial platform designed to simplify and optimize your money management. Whether you’re managing day-to-day expenses, saving for short-term goals or planning your long-term financial future, Wealthsimple Cash has everything you need.

For travelers, this account and its associated prepaid Mastercard represent an excellent option for avoiding conversion fees on foreign currency spending and for withdrawing money from international ATMs at lower cost.

The Wealthsimple Cash account is completely free of charge, with no minimum account balance. The prepaid Mastercard is also free, with no annual fee.

In addition to all the functions of a traditional checking account, Wealthsimple Cash is also a high-interest savings account.

The interest rate offered on the Wealthsimple Cash account varies between 4% and 5% annually. All customers receive a minimum of 4% interest, then qualify for higher rates depending on their assets under management in all their Wealthsimple accounts combined:

These current rates are not promotional. They will remain so until Wealthsimple decides to modify them, based on the Bank of Canada’s recommendations and policy rate.

Interest is calculated daily and deposited monthly (on the 1st day of the month) into your Wealthsimple Cash account.

When traveling outside Canada, the Wealthsimple Cash card offers great benefits.

After the high-interest savings account, the second highlight of Wealthsimple Cash is the absence of conversion fees for foreign currency transactions. As with some credit cards, you’ll save 2.5% on each transaction outside Canada.

However, it is sometimes more advantageous to use a credit card that charges a 2.5% conversion fee if the multiplier for the expense is attractive. For example, the American Express Cobalt^MD Card has a conversion fee, but it earns 5x points on grocery and restaurant purchases.

Since American Express Membership Rewards points have a minimum value of 1¢ per point, that’s a minimum return of 2.5% on your purchases (5% – 2.5%).

This surpasses the 1% discount that the Wealthsimple Cash card could give you. For these reasons, I recommend using it for ATM withdrawals, but using a more advantageous card for spending abroad.

Cash account functionalities are only available on the Wealthsimple mobile application.

All Wealthsimple account types are now combined in the same application with a single login and password. To open an account, you must be a Canadian resident, have reached the age of majority in your province and have a valid Canadian telephone number.

The process is fairly straightforward, and once you’ve created your Wealthsimple login and verified your e-mail address, you can open your first account. You will also need to verify your telephone number.

Once you’ve opened your Cash account, you’ll have access to a virtual card to use with a virtual wallet (Apple Pay, Google Pay, Samsung Pay) and to make online purchases.

To receive a physical card, you need to request it from the application. You will receive it by mail in 10-14 working days.

In short, Wealthsimple Cash offers a complete and convenient financial solution, with a checking account, a high-interest savings account, and a prepaid Mastercard offering rewards. It’s a modern, no-cost option, ideal for all-in-one financial management. Whether you’re traveling or looking to simplify your finances, Wealthsimple Cash is a card to have in your wallet.