• Login

    • Wealthsimple High Interest Savings Account: Earn up to 5%

    In the realm of modern finance, Wealthsimple stands out as more than just a robo-advisor. The platform offers a diverse array of financial products and services, including savings accounts, a stock and crypto brokerage account, tax software, and even a cashback prepaid card. Today, we’ll delve into one of their attractive offerings – the Wealthsimple High-Interest Savings Account (HISA) – and explore how it works, the associated fees, and the pros and cons.

    Wealthsimple High-Interest Savings Account Overview

    Wealthsimple offers three distinct savings accounts to cater to varying financial needs:

    1. Wealthsimple Save

    This is Wealthsimple’s standard savings account. It offers a competitive 1.5% interest rate (1.10% for business accounts). Interest is calculated daily and paid out on the 5th business day of each month.

    2. Wealthsimple High-Interest Savings Portfolio (Managed):

    With this option, your funds are invested in the Purpose High Interest Savings Fund (PSA), an HISA ETF. The interest rate you earn depends on the performance of the PSA, which, as of the latest information, boasted an impressive 5.30% net yield. However, you should be aware of the management fee, which ranges from 0.40% to 0.50% and is based on your account balance:
    • Account less than $100,000: 0.50%
    • Account over $100,000: 0.40%
    One notable advantage of this managed HISA is the flexibility to cash out at any time, unlike non-redeemable GICs.

    3. Wealthsimple Cash:

    This hybrid account functions like a chequing account but offers interest on your balance. The interest rate you earn depends on your account level:
    • Standard Wealthsimple account with no minimum balance: 4% interest
    • Premium Wealthsimple account: 4.5% interest (requires a Wealthsimple asset balance of at least $100,000)
    • Wealthsimple Generation: 5% interest (requires a Wealthsimple asset balance of at least $500,000)
    Wealthsimple Cash accounts come with a prepaid Mastercard that can be used for online and in-person transactions, Interac e-transfers, direct deposits, and bill payments.

    Wealthsimple Savings Account Fees

    The good news is that there are no monthly fees associated with Wealthsimple Cash and Save accounts. However, if you opt for a managed HISA, you’ll be subject to an annual management fee ranging from 0.40% to 0.50%. Additionally, your returns will be net of the ETF management expense ratio.

    CDIC Coverage and Protection

    Wealthsimple offers security for your savings. The balance in your Wealthsimple Cash account is eligible for CDIC (Canada Deposit Insurance Corporation) deposit insurance coverage up to $300,000, thanks to the money being held at multiple CDIC member institutions. For managed accounts, they are protected by the Canadian Investor Protection Fund within specified limits in the unfortunate event that the company becomes insolvent. Wealthsimple Save accounts are also eligible for CDIC insurance up to $100,000.

    Exploring High-Interest Savings Alternatives

    While Wealthsimple’s high-interest savings accounts are appealing, it’s always a good idea to explore alternatives. Some other banks also offer competitive interest rates, and it’s wise to compare your options.

    EQ Bank Savings Plus Account

    • Interest Rate: EQ Bank offers a competitive non-promotional interest rate of 3.00%.
    • Account Features: This account provides unlimited debits, bill payments, and Interac e-Transfers. Plus, there are no monthly account fees.
    • Highlights: EQ Bank is known for its high interest rate and the absence of monthly fees, making it an attractive choice for those seeking competitive returns and accessibility.

    Simplii High-Interest Savings Account

    • Interest Rate: Simplii offers an impressive 6.00% interest rate for the first 5 months.
    • Account Features: Account holders enjoy unlimited debits, bill payments, and Interac e-Transfers. Additionally, you can receive a $400 cash bonus when opening a free chequing account.
    • Highlights: Simplii’s introductory interest rate is appealing, but it’s essential to consider the rate beyond the promotional period. The bonus cash offer is a notable benefit.

    Scotiabank MomentumPLUS Savings

    • Interest Rate: Scotiabank offers a regular interest rate of 1.40%, plus bonus interest for a limited time.
    • Account Features: There are no monthly fees, and this account is offered by one of the Big Five Banks. Account holders can also access a range of other banking products.
    • Highlights: Scotiabank’s offering is appealing for those who prefer the stability and convenience of a well-established banking institution. The bonus interest rate adds an extra incentive.

    Neo Money Account

    • Interest Rate: Neo Financial provides a 2.25% non-promotional interest rate.
    • Account Features: With Neo, you’ll enjoy no monthly fees, a $20 bonus, and unlimited free transactions. Account holders also get a Mastercard for online payments and ATM withdrawals, and access to a no-annual-fee credit card.
    • Highlights: Neo Financial stands out for its competitive interest rate, account features, and the added benefit of a Mastercard and credit card options.
    In conclusion, Wealthsimple’s High-Interest Savings Accounts offer an enticing way to grow your savings with competitive interest rates and flexibility. Before deciding, consider your financial goals and needs, and explore other options in the market to make an informed choice that aligns with your financial journey.
    Search
    Table of Contents

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Follow Us
    Facebook-f Twitter Youtube Pinterest Instagram
    Quick Links
    Personal Finance
    © 2023 My Finances Guru. All Rights Reserved. Techytrion Softwares

    The content provided on Myfinancesguru.com is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.