What’s the Wealthsimple Money card?
The Wealthsimple Money card is a pay as you go Mastercard out there to anybody with a Wealthsimple Money account. With this card, you need to use the funds in your account to make purchases in-store or on-line. It’s primarily a debit card.
Regardless of the simplicity, the Wealthsimple Money card has two important options. First, you’ll earn 1% again in rewards on all purchases. This money again may be utilized to your account or invested into shares or crypto by way of your Wealthsimple self-directed account.
Moreover, the cardboard has no international transaction charges. Most conventional bank cards cost a international transaction charge of two.5% whenever you make a purchase order in any forex that’s not Canadian {dollars}. The Wealthsimple Money card additionally waives international transaction charges on ATM withdrawals, so having the cardboard is an inexpensive method to get money within the native forex whenever you journey. (You should still be charged a charge by the retailer or monetary institutional concerned in your transaction, or a charge by the ATM supplier.)
Is Wealthsimple Money secure?
The deposits in your Wealthsimple Money account are insured for as much as $1 million by way of the Canada Deposit Insurance coverage Company (CDIC). That is ten instances the quantity of CDIC insurance coverage safety sometimes provided by HISAs in Canada. As a result of Wealthsimple isn’t technically a “financial institution,” your deposits are saved in belief with as much as 10 federally regulated CDIC-members. Every gives the usual quantity of protection. In the meantime, you proceed getting access to all of your funds by way of Wealthsimple, as you’d with every other account.
Wealthsimple Money professionals and cons
Wealthsimple Money and the Wealthsimple Money card are tied collectively, so you could think about the professionals and cons of every earlier than deciding in the event that they swimsuit you.
Wealthsimple Money professionals
- Excessive rate of interest: You may earn from 3.25% to 4.25% curiosity in your financial savings.
- Sturdy CDIC safety: Your funds are CDIC-insured for as much as $1 million.
- No international transaction charges: When utilizing the Wealthsimple Money card, you gained’t pay international transaction charges on purchases or ATM withdrawals.
Wealthsimple Money cons
- Potential distractions: By means of the account’s rewards scheme, Wealthsimple encourages you to make use of your financial savings to put money into riskier property resembling cryptocurrency and shares.
- Not a real bank card: The Wealthsimple Money card is a pay as you go Mastercard, not a bank card. So, you’re restricted to what’s in your account (which is probably not a foul factor).
- Doesn’t construct credit score: Because it’s a pay as you go product, you don’t construct a credit score historical past with the Wealthsimple Money card.
Options to Wealthsimple Money
Wealthsimple Money’s declare of being Canada’s highest-interest chequing account is correct, however you shouldn’t instantly dismiss the competitors. It’s all the time finest to weigh your choices to see what suits you finest.
There are a handful of financial savings accounts providing excessive rates of interest in Canada. However Wealthsimple’s closest competitors is EQ Financial institution’s new Discover Financial savings Account. With this account, you may earn as much as 4.25% curiosity in your deposits with no minimal asset necessities and no charges. Nevertheless, there’s a catch. There’s a 10-day or 30-day ready interval to withdraw your funds if you wish to earn 4.0% or 4.25% curiosity, respectively. EQ Financial institution does supply a private account from which you’ll be able to withdraw your funds at any time, however you’ll solely earn as much as 4% curiosity (it contains 2.5% curiosity by default and one other 1.5% if you happen to direct deposit your pay). EQ Financial institution additionally gives a no international alternate charge pay as you go Mastercard that can be utilized for purchases and ATM withdrawals.
If no international transaction charges is what you’re after, an alternative choice is Smart. Just like the Wealthsimple Money card, it’s a pay as you go card. The distinction with Smart is that you could maintain a number of currencies and preload your account every time the alternate fee is beneficial.
