Luisa Rollenhagen is a journalist and investor who writes about financial planning for Wealthsimple. She is a past winner of the David James Burrell Prize for journalistic achievement and her work has been published in GQ Magazine and BuzzFeed. Luisa earned her M.A. in Journalism at New York University and is now based in Berlin, Germany.
If you've been in the inner circle for a while—you might have heard about Wealthsimple Save. It was a savings account with a higher interest rate than big banks. The perfect parking spot for short term savings. Recently, we married the savings account you know and love with features similar to a chequing account to bring you Wealthsimple Cash. One single place to spend, save and most importantly, earn interest. With Wealthsimple Cash, you can buy lunch, save for an African safari and watch your savings grow—all from just one single account. It was mint to be!We built a better way to save and spend — no account minimum, no hidden fees and friendly humans to talk to. Get started with Wealthsimple Cash and earn 2.4% annual interest.
What is Wealthsimple Cash?
You probably have too many accounts to keep track of, so we figured you could do with one less. In addition to the simplicity of being able to spend and save from the same account, here are some of the stand-out features of Wealthsimple Cash: Available upon launch (from January 2020):
High-interest rate — earn 2.4% interest annually on your cash rather than have it sit in a standard chequing account earning nothing or earning less than half that rate in a standard savings account at a brick and mortar bank.
No account minimum — as is the case with all Wealthsimple accounts, there's no required minimum balance you have to keep in the account.
No hidden fees — unlike many traditional brick-and-mortar chequing accounts Wealthsimple Cash will carry no monthly fee.
Pay bills — you'll be able to pay your utility bill, credit card bill or any other bill all in one place, no more switching and transferring between accounts.
No foreign exchange fees on spending abroad — forget transaction fees on the money you spend outside of Canada. When you pay with your Wealthsimple Cash card, we won't charge you an exchange fee.
E-transfers — ever owe your buddy some cash for the coffee they bought you the other day? Immediately pay them from your account, so you can conveniently go on with your day without having to run to a cash machine.
ATM reimbursements — we’ll refund ATM charges so you can say goodbye to those pesky fees.
How is Wealthsimple Cash different?
You use your chequing account for many everyday expenses like rent, groceries or house plants you've vowed not to kill. You need money that's accessible quickly and easily. The problem with conventional chequing accounts is that you're usually not earning any interest on the money stored in your account. Savings accounts, on the other hand, often make your money inaccessible for some time and big banks usually pay reduced interest rates. If you take into account the rising prices of goods and services, your money in a standard chequing or savings account could be losing value. Apart from the income, you deposit yourself—a traditional chequing account never grows. Wealthsimple Cash is different. While your money grows at a competitive rate of 2.4%, it's also accessible for all of your daily spending needs. Cash will also be available as a joint account, in case you and your partner both want to earn high interest. The addition of Wealthsimple Cash means that we're a one-stop-shop for all of your financial needs. You can invest passively for the future with Wealthsimple Invest, buy stocks in companies you believe in with Wealthsimple Trade and now save and spend with Wealthsimple Cash. Any accounts you hold, including Wealthsimple Cash, can be seamlessly integrated with your Wealthsimple investment accounts. Plus, any amount you put in Wealthsimple Cash will count towards the $100,000 account balance required to achieve Wealthsimple Black status, with its reduced management fees on investment accounts as well as cushy perks like entry into 1,000 airport lounges worldwide.