Finance for Humans
How to Make Your Money Make Money
One problem with having so many great places to earn a return on your money? It can be hard to keep them straight — and even harder to choose the right one.
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If there’s any benefit to all the interest rate hiking Tiff Macklem and the Bank of Canada have done lately — other than, you know, stopping rampant inflation — it’s that you can finally earn some real money on your money. You’re no longer stuck accepting the tiniest fraction of a percentage of interest a bank might give you on your savings account. And high-interest ETFs are almost cool enough to talk about at dinner parties. (Still better not to risk it.)
Whatever your financial goals, there are more great places to park your money than ever before. And, not to brag, but Wealthsimple has the best of them:
Wealthsimple Cash: Think of it like a debit card that pays you back. To earn 3% interest on the balance in your account, all you have to do is auto deposit your paycheque. If you have more than $100,000 across all of your Wealthsimple accounts, we’ll bump it up to 4%. In case that’s not enough, we’ll also give you 1% back on all purchases in the form of stock, crypto, or cash.
High-Interest Savings Portfolio: These accounts currently earn you 4.38-4.48% by investing in low-risk, high-interest ETFs. They’re a great way to earn money on your emergency fund or any other balances you’ve got plans for in the short term. (Think saving for a wedding, a down payment on a house, or new calf implants.) The best part? There’s no minimum deposit required and you can withdraw your money at any time without a penalty.
Private Credit: Never heard of this one? That’s likely because it was primarily reserved for huge institutional investors. A high-yield diversifier for a portfolio of stocks and bonds, Private Credit lets investors lend money directly to customers — kind of like a bank — and collect interest on those loans. Our fund currently targets a 9% yield and is available exclusively to managed investing clients with $100,000 or more in deposits across their accounts.
Choosing the right option (or more likely, the right two or three) depends on a few things: what you’re saving for, when you plan to use your money, and how much money we’re talking about. If that sounds intimidating, don’t worry: we made a flow chart!*
*As handy as flow charts can be, there are a lot more considerations than we can fit here. Just like you would before writing a will or growing a moustache, we recommend speaking with an expert before making any big decisions.
Wealthsimple uses technology and smart, friendly humans to help you grow and manage your money. Invest, save, trade, and even do your taxes in a better, simpler way.
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All yields advertised are subject to change and are not guaranteed. Check wsim.co for current rates and more information.
Our Cash product is offered by Wealthsimple Investments Inc. (WSII), a member of the Investment Industry Regulatory Organization of Canada (IIROC), and Wealthsimple Payments Inc., a FINTRAC registered money services business.
Managed accounts are offered by Wealthsimple Inc., a registered portfolio manager in each province and territory of Canada. Private credit is available as part of a managed investing relationship with Wealthsimple Inc. Managed accounts, including private credit, are subject to management fees.
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