What’s the Wealthsimple Money card?
The Wealthsimple Money card is a pay as you go Mastercard accessible to anybody with a Wealthsimple Money account. With this card, you should utilize 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 vital options. First, you’ll earn 1% again in rewards on all purchases. This money again might be utilized to your account or invested into shares or crypto by way of your Wealthsimple self-directed account.
Moreover, the cardboard has no overseas transaction charges. Most conventional bank cards cost a overseas transaction price of two.5% once you make a purchase order in any foreign money that’s not Canadian {dollars}. The Wealthsimple Money card additionally waives overseas transaction charges on ATM withdrawals, so having the cardboard is an inexpensive method to get money within the native foreign money once you journey. (You should still be charged a price by the retailer or monetary institutional concerned in your transaction, or a price 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 occasions the quantity of CDIC insurance coverage safety sometimes supplied 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 gaining access to all of your funds by way of Wealthsimple, as you’d with some other account.
Wealthsimple Money execs and cons
Wealthsimple Money and the Wealthsimple Money card are tied collectively, so you have to take into account the professionals and cons of every earlier than deciding in the event that they go well with you.
Wealthsimple Money execs
- Excessive rate of interest: You may earn from 2.00% to three.00% curiosity in your financial savings.
- Sturdy CDIC safety: Your funds are CDIC-insured for as much as $1 million.
- No overseas transaction charges: When utilizing the Wealthsimple Money card, you received’t pay overseas 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 spend money on riskier belongings comparable to 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 will not be a nasty 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.
Alternate 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. EQ Financial institution affords a Private Account from which you’ll be able to withdraw your funds at any time, and also you’ll earn as much as 4.00% curiosity in your stability. That features 1.50% curiosity by default, plus a bonus when you direct deposit your pay. EQ Financial institution additionally affords a no overseas transaction price pay as you go Mastercard that can be utilized for purchases and ATM withdrawals.
If no overseas transaction charges is what you’re after, another choice is Smart. Just like the Wealthsimple Money card, it’s a pay as you go card. The distinction with Smart is which you could maintain a number of currencies and preload your account each time the trade fee is beneficial.