What is Wealthsimple Money?
Wealthsimple introduced Wealthsimple Cash, a high-interest savings account that was launched in January 2020. This account offered higher than average interest rates and had no fees. Wealthsimple Cash had plans to launch a Tungsten Prepaid Card soon. This card would function as a debit card, and allow for free ATM withdrawals.
Wealthsimple just released the latest version (or reinvention), of Wealthsimple cash. This app acts as a peer to peer payment platform and allows you to send money free to your family members, friends, and relatives (anyone on a contact list).
What is the process?
All you need to do to use Wealthsimple cash is to download the app, create an account or use the Wealthsimple bank account that you already have and connect it to the Wealthsimple cash app. After adding money to your Wealthsimple cash account, you will choose a dollar sign handle, and then link your contact list. You can then import your contacts from your phone.
If they have Wealthsimple cash, you can send and receive money immediately from any person on your contact list. Wealthsimple cash can be used to split restaurant bills, pay vacation expenses, or to pay your dog walker. You can use Wealthsimple cash the same way as a bank transfer e-transfer. There is no need to answer any questions and money will arrive instantly, instead of waiting for hours. Wealthsimple Cash comes with no fees.
Wealthsimple Cash plans to release a card that functions like a debit or prepaid card, or a combination of both. The card will allow for free ATM withdrawals, and will not charge foreign transaction fees – a savings of 2.5% for each foreign transaction. The card is compatible with electronic wallets such as Apple Pay and Google Pay. We will review the card in more detail once we have more information.
Wealthsimple Cash Features
These are the main features of Wealthsimple cash:
Send Money Instantly:Etransfers can take up to three hours to receive. With the Wealthsimple cash app, you can send and receive money in just seconds.
No fees: E-transfers are available at some financial institutions for an additional fee. Wealthsimple Cash is completely free. You can send as many transfer as you like. You don’t need to have a minimum balance or pay account fees.
Private:You can be anonymous by using only your dollar sign address to send money.
Safe:Account balances of up to $100,000 are covered by Wealthsimple cash and the CDIC. Your account is also protected with biometrics or fingerprint ID.
Send more cash:Most Canadian banks limit transfers to $3,000 per day. Wealthsimple Cash allows you to send up to $5,000 per day and up to $20,000 per month.
Simple to Use: The app is simple to use and set up is quick and easy.
Referral Bonus: You and your friend can receive $5 each if they refer Wealthsimple cash users.
Earn interest: Wealthsimple cash funds earn interest. The current rate is 0.75%.
How to Apply
Wealthsimple Cash makes setting up an account easy. Follow these steps:
- Click here Go to the website, and select “Wealthsimple cash” under products.
- To download the app for iOS or Android, click ‘Get Cash App’.
- You can create a new account or sign in with the same login information if you are a Wealthsimple client already using one of their products, such as Wealthsimple Trading or wealthsimple Invest.
- Wealthsimple will send you a code via email to confirm your identity. Wealthsimple will send a code to your email address for two-step identification.
- Next you pick your unique “Dollar $ign” symbol. This sign will be your unique handle, and you will need it to send money. This handle is extremely important. It replaces the need for you to create a question and answer in order to send money. Wealthsimple Cash allows you to simply provide your unique dollar sign handle in order to send or accept payments.
- Connect the Wealthsimple cash app to your Wealthsimple cash account.
- Sign a Client Account Agreement
- To send money, you can add funds to your account via bank transfer.
- You can sync your contacts and be ready to go! You can now send money with Wealthsimple Cash.
How does Wealthsimple cash make money?
We are not aware of any details Wealthsimple has published about how it intends to monetize Wealthsimple Cash. Wealthsimple simply emphasizes the fact that Wealthsimple is offering the product for free.
Wealthsimple Cash has no monthly fees, no foreign transaction fees and no low balance fees. We believe that your money should remain in your pocket.
Wealthsimple representatives confirmed to us that Wealthsimple does not currently monetize from Wealthsimple cash. Instead, the company hopes that more Canadians will be exposed to Wealthsimple cash and encourage them to explore other Wealthsimple products like Wealthsimple Investment.
Pros & Cons
- Simple to use app
- Instant cash transfer is possible without the need for a security question or answer.
- You can get money in seconds, rather than up to three hours. This is possible with e-transfers.
- There is no minimum deposit and there are no transaction or account fees.
- Transfers of funds between banks are unlimited and free
- The account earns interest at a higher rate than traditional savings accounts of banks, which is common.
- Wealthsimple took a lot longer to release many chequing-related features.
- The interest rate on funds held in this account is typically lower than savings accounts at virtual banks (like EQ Bank).
Wealthsimple Cash: Should you Use It?
If you find yourself in situations where money is needed quickly, Wealthsimple Cash should be your first choice. Wealthsimple cash can be useful if you have a roommate who shares household expenses, frequents the restaurant, or takes cab rides with your friends. It’s easy to send money to anyone in your contact list. This makes it easier than setting up security questions and answers with people like e-transfers.
However, the Wealthsimple cash app is not suitable for people who don’t feel comfortable using their mobile phones to make financial transactions. The slow rollout of the hybrid account features like bill pay and payment card functionality might make it difficult for people who are looking to combine chequing and mobile payments.
The Wealthsimple cash app is simple to use and secure. Wealthsimple cash has a higher daily limit (up to $5,000) than traditional bank accounts. The app isn’t very innovative or exciting, especially since many Canadians, particularly those with discount internet banks, can send money to others for free. It’s not a major deal that someone might have to wait for a few hours before they receive the money via e-transfer.
I feel a bit disappointed by Wealthsimple. They originally promised so many more features than the account currently offers, such as the ability to withdraw from ATMs and pay bills, make direct deposits and bill payments, and no foreign transaction fees. I will wait for more features to be added before I use this account frequently.