Personal Finance

Wealthsimple unveils new chequing account partnership with two major Canadian banks

  • Last Updated:
  • Apr 30th, 2020 10:41 am
[OP]
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Apr 15, 2018
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Ottawa

Wealthsimple unveils new chequing account partnership with two major Canadian banks

Very interesting

It's basically a prepaid visa, with billpayments and e-transfers "coming soon", and a 2.4% interest rate.
371 replies
[OP]
Newbie
Apr 15, 2018
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Ottawa
I mean...sure...but how many of them offer 2.4% interest and e-transfers and bill payments?
Deal Fanatic
Oct 7, 2007
7200 posts
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pictor wrote: I mean...sure...but how many of them offer 2.4% interest and e-transfers and bill payments?
How does the 2.4% interest work on a prepaid Visa? Does Visa pay you OR are you able to carry a balance owing on a prepaid credit card and only get charged 2.4% for it?
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Mar 23, 2004
41351 posts
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Markham
pictor wrote: I mean...sure...but how many of them offer 2.4% interest and e-transfers and bill payments?
The LBC dual of Chequing/Savings does (3.30% interest as of now even). Yes, they are two separate accounts, but it's under the same login anyway so no extra work needed to access both at the same time. If only their site doesn't suck...
Member
Aug 31, 2006
369 posts
166 upvotes
Reading their FAQ, they are not covered by CDIC, but are covered by IIROC. How much (if any) does this cover?
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rhw123 wrote: https://www.wealthsimple.com/en-ca/magazine/news-cash

ATM fee reimbursements and no foreign exchange fees, could be useful.
Looks like the visa portion is from People's Trust:
Wealthsimple has partnered with a program manager to bring you spending features. The Weathsimple Cash Visa Prepaid Card is issued by Peoples Trust Company who is a licensed issuer of Visa International Incorporated. These services are provided by service providers including Visa, Peoples Trust Company, and Galileo Processing.
Also, looks like they have a premium account called Wealthsimple Black that has some perks (VIP lounge access will be nice if it's unlimited):

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Member
Feb 18, 2019
373 posts
403 upvotes
That card looks really classy... And made of tungsten.

I'm in.
[OP]
Newbie
Apr 15, 2018
92 posts
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Ottawa
KooJo wrote: Reading their FAQ, they are not covered by CDIC, but are covered by IIROC. How much (if any) does this cover?
As I understand it, your money is covered if Wealthsimple goes bankrupt, but NOT covered if the underlying bank goes bankrupt
Member
Feb 18, 2019
373 posts
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pictor wrote: As I understand it, your money is covered if Wealthsimple goes bankrupt, but NOT covered if the underlying bank goes bankrupt
Then the government just bails out the bank.
[OP]
Newbie
Apr 15, 2018
92 posts
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Ottawa
angel_wing0 wrote: Also, looks like they have a premium account called Wealthsimple Black that has some perks (VIP lounge access will be nice if it's unlimited):
They've always had WS Black. At $100K, it's really more there for your investment portfolios.
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Mar 23, 2004
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pictor wrote: They've always had WS Black. At $100K, it's really more there for your investment portfolios.
I see, 10 free lounge visits per year is not bad actually:
As a Wealthsimple Black client, you get tax-efficient investing, goal-based financial planning with an experienced Portfolio Manager, and 10 Priority Pass airline lounge visits for one year.
Source: https://help.wealthsimple.com/hc/en-ca/ ... ple-Black-
Jr. Member
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Jan 11, 2020
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Wouldn't feel too comfy dumping 100k there without CDIC or DICO. 2.4% is good though. I remember checking if they were CIPF back in 2017 and it wasn't very clear, I think they had a subsidiary or a clearing house that was CIPF insured. Not sure why their safeguard arrangements are so convoluted.
They consider 0.4% low for MER?!

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