Advertisement
Wealthsimple is flexing against Canada’s big banks. Here’s how they plan to get your business.
Canadians aren’t short of credit card options, that’s for sure. At an average of two to three credit cards per person, we have more credit cards than debit cards in our wallets. But there’s still room for one more, suggests Wealthsimple with its recently launched bank-like offerings, including two new cash back options: a new-ish credit card and a revamped savings account. Why now? Why another credit card and chequing account? And what’s happening with Wealthsimple Cash? Let’s find out.
At what felt like an Apple product launch, with a live event (at Toronto’s Evergreen Brick Works) and streaming to over 110,000 Canadians, Wealthsimple announced a new credit card and chequing account, both under a campaign called “The End of Banking?” It’s clear that the move is to compete against Canada’s big banks.
Wealthsimple tells MoneySense that its current clients wanted expanded services, and financial products that they used, well, elsewhere. Here are some of its recent survey results.
According to Paul Teshima, chief commercial officer at Wealthsimple, having a chequing account at the fintech means a “faster delivery of movement of money. We’ve always, within our own ecosystem, allowed for fast movement of money, with no limits, no fees.” He adds: “The [transferring of money] issue is more prevalent across the industry, where banks will charge a transfer fee if you want to move money from, say, your retirement account or your TFSA to another institution like us. They charge up to $150 for every account you transfer.” He calls this “a tax on choice.”
Rogers Red World Elite Mastercard
CIBC Dividend Visa Infinite Card
SimplyCash Preferred Card from American Express
First of all, you can’t apply for it right away. Like the launch of Wealthsimple’s first home savings account (FHSA) and other financial products, you have to sign up for a waitlist, which happened with the soft launch of the card in April. (Could be part buzz-building and part onboarding management.) The waitlist has since opened up again for 20,000 cards.
Second, Wealthsimple’s card is a Visa Infinite card, and it promises to be competitive, and so far, so good. Its cash back rewards are dead simple: 2% on all purchases. No tiers, categories or complicated charts.
As for redeeming the moolah, the rewards are credited to your Wealthsimple Chequing account within seven days of your statement date, and the Wealthsimple app will notify you.
| Cash back rewards | Earn 2% on all purchases; no categories, limits, nor spending caps. |
| Annual fee | $120, broken down into monthly payments, which can be waived for clients with $100,000 in other Wealthsimple products/accounts, or qualifying deposits of $4,000 a month. |
| Interest rate | 20.99% |
| Foreign exchange | No FX fee, which is typically 2.5% of an international purchase. |
| Tap limit | No tap limit amount. |
Formerly known as Wealthsimple Cash, Wealthsimple Chequing allows clients to earn 1% in cash back rewards on all purchases using a prepaid Mastercard. And it offers access to direct-deposited paycheque funds a day early, as well as 0.5% interest on your total account balance when qualifying direct deposits are set up.
I know what you really want to know: What are the fees? Wealthsimple Chequing has no ATM withdrawal fee, and Wealthsimple reimburses up to $5 if the ATM network charges a fee. The account has no foreign transaction fees.
In under 60 seconds, get matched with a personalized list of the best credit cards based on your spending personality and approval likelihood. No SIN required.
Your account is still your account, but it now comes with more options to work like a hybrid savings-chequing account. Nothing changes from the savings aspect (the account still offers 1.75% and 2.75% interest (premium accounts get the higher rate), automated savings and no account fees), but you’ll now get added chequing account options, including paycheque deposits, bank drafts and more. At press time, the app still showed Wealthsimple Cash.
| Fees | No fees, including monthly, minimum balance, e-transfer (up to $25,000 a day), ATM (up to $5 reimbursed per qualifying withdrawal) or foreign exchange. Delivery fees for expedited bank draft orders are waived. |
| Interest rate | Up to 2.75% |
| Auto deposit | Automatic e-transfers using your email address. |
| Money transfers | Send money internationally with Wise, and receive it with your account at no charge. |
| Direct deposit | Get access to your paycheque a day before it’s deposited and an additional 0.5% interest on your total account balance when qualifying direct deposits are set up. |
| Automated savings | Set up automatic transfers to other accounts and/or investments. |
| Bank drafts | Receive bank drafts at your door as soon as the next day. |
Also part of the announcement were a new credit product and two services: a 4% USD account, a line of credit (with interest as low as 4.45%), physical cheque delivery and cash delivery. Most of this will happen in the fall, and some of it is based on location. For example, cash delivery will soft launch in the Toronto area in four or five months.
MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings of major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.
With its new products and services—and more to come—it’s clear that Wealthsimple is making moves to become a one-stop shop for banking and investing (although it cannot be legally called a bank). But there are other financial institutions that offer similar services. Below are some of the best from MoneySense’s financial product rankings, along with the best credit cards and accounts. (Wealthsimple’s account is our pick for best chequing account in Canada.)
| Best banks and credit unions | • Gold: TD Canada Trust • Silver: CIBC • Bronze: RBC Royal Bank |
| Best credit cards in Canada | • Best cash back credit card: Rogers Red World Elite Mastercard • Best travel credit card: Scotiabank Gold American Express • Best low-interest credit card: Desjardins Flexi Visa |
| Best high-interest savings accounts | • Gold: EQ Bank Personal Account • Silver: EQ Bank Notice Savings Account • Bronze: LBC Digital High-Interest Savings Account |
| Best chequing accounts | • Gold: Wealthsimple Cash (soon to be Wealthsimple Chequing) • Silver: EQ Bank Personal Account • Bronze: The PC Money Account |
For investing, check out our picks for best online brokers and best robo-advisors.
Watch MoneySense: How to close a bank accountThis isn’t just about a credit card. Nor a chequing account. It’s about the seamless integration of all Wealthsimple products, including funnelling money to investment accounts. So, leaving your bank or changing your banking habits to use Wealthsimple’s “banking” products may make sense for existing customers. But if you’re wanting to try just one product, it may cost you, through transfer fees from your original bank or financial institution.
Switching entirely to Wealthsimple also means no more access to a physical bank branch, which Wealthsimple suggests is a good thing for convenience. Does doing all your banking virtually—even if it’s seamless with bank draft, cheque and cash deliveries to your home—increase the risk of theft and hacked accounts?
“Our app itself is extremely secure,” says Teshima. One of its security features is based on where you typically use your devices. “We do location-based lockdowns. So, when you’re doing a large transaction, are you in one of the spaces you’ve designated as one of your trusted areas, whether it’s your home or your office? We have access to GPS data. What we’re trying to do is take advantage of some of the security capabilities of your phone and make that experience even tighter for banking.”
You can also designate someone you trust as an emergency contact for fraud prevention, create security questions, use two-factor authentication and add transaction limits to your accounts. You also get $1 million in Canada Deposit Insurance Corporation (CDIC) coverage on eligible deposits.
If you’re undecided, know that Wealthsimple is promising even more news to come, hinting at changes to its investing portfolios and more, at another presentation in fall 2025.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Canada’s original asset-allocation ETF is still a good all-in-one investment, but it can have its flaws. Here are add-ons...
Luis asks when his Old Age Security payments will increase now that he is 75. We look at adjustment...
Here’s how Canada’s Old Age Security pension works, who’s eligible for OAS, when you can start receiving OAS, and...
Whether you want the highest interest rate or no service fees, these savings accounts will meet your needs.
Find the best GIC rates in Canada. Plus, everything you need to know about how they work.
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
Laurentian Bank reports profits and BRP reports healthy margins and posts for a new CEO.
What you need to know about buying and leasing, credit scores, auto insurance and more.
Created By
Ratehub.ca
