Wealthsimple just rolled out a new account type, and it's worth knowing about if you've got cash sitting around not doing much. It's simply called the Savings account, and it pays a flat 2.5% interest with no strings attached.
What is the new Wealthsimple Savings account?
This is a non-registered investment account built specifically to hold cash and earn interest on it. It's separate from your Chequing account and separate from the Registered Savings account (the one you can open as a TFSA, RRSP, or FHSA).
The basics:
- 2.5% interest, flat, regardless of your account tier or direct deposit status
- Interest calculated daily, paid out monthly
- No MER fees on the cash you hold in it
- CIPF-protected up to $1,000,000, since it's held through Wealthsimple Investments Inc., a CIRO member firm
That CIPF protection is worth pausing on, since it's different from the CDIC protection you might be used to on a Cash or Chequing account. CIPF protects investment accounts at CIRO member firms if the firm itself becomes insolvent, and it's automatic, you don't need to sign up for it separately.
How it compares to Wealthsimple's other cash options
Wealthsimple now has a few different places to park cash, and the new Savings account sits in a specific spot:
| Account | Rate | Registered? | Notes |
|---|---|---|---|
| Chequing | Up to 2.25% | No | Rate boost with direct deposit |
| Savings (new) | 2.5% flat | No | Simplest, no boost needed |
| Registered Savings | Up to 2.75% | Yes (TFSA/RRSP/FHSA) | Tax-sheltered |
If you're just looking for a plain, no-hoops way to earn a bit more than Chequing pays by default, the new Savings account is a straightforward option. It's not trying to compete with the tax-sheltered registered account, it's more of a dedicated cash-holding account for money you're not ready to invest yet.
What you can't do with it (yet)
A few current limitations worth knowing before you open one:
- No joint accounts. Individual only for now.
- No business or USD version. Personal CAD accounts only.
- Can't be used as collateral for Wealthsimple's Portfolio Line of Credit.
- No in-kind transfers in or out.
- No direct deposit support. There's no account number, transit number, or cheque support, so you can't route your paycheque here directly. You fund it by transferring from another Wealthsimple account or a linked bank account.
You can open up to 10 Savings accounts if you want to organize your cash into separate buckets, an emergency fund, a house down payment, a trip fund, and so on.
There's also a market rate option
If you're comfortable with a bit of variability, Wealthsimple offers a "market rate" mode for the Savings account. Instead of the flat 2.5%, your balance gets allocated to one of five cash-equivalent ETFs (PSA, ZMMK, HISA, CSAV, or CASH), and your yield tracks that ETF instead of a guaranteed rate.
Worth knowing: withdrawals in market rate mode take longer, about 1 business day to settle, since the ETF has to sell first. In the standard 2.5% mode, internal transfers out are instant, and external withdrawals take 1-3 business days.
How to open one
- Open the Wealthsimple app
- From the Home tab, scroll to your accounts and tap the add (+) button
- Select Open a new account
- Tap Spend & Save, then Savings
- Tap Get started and confirm your details
Takes a couple of minutes if you already have a Wealthsimple account.
🎁 New to Wealthsimple? Sign up at Wealthsimple with referral code US0EBW and get a $25 bonus when you deposit $100, then open a Savings account to start earning 2.5% right away.
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