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Wealthsimple launches Smart Savings Account
April 5, 2018
1:15 pm
Yatti420
Canada
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I think this is list worthy..

INTRODUCING
Smart Savings

We built a better way to save with higher rates than big banks. Start now and earn 1.7%. All the good stuff you expect from Wealthsimple, plus unlimited transactions, no account minimums, and no introductory rates.
Start saving better
Learn more about Wealthsimple Smart Savings.

Things to note. Invest over 100k and gain WealthSimple Black Status.

Save or invest $100,000 across accounts and get Wealthsimple Black

VIP airline lounge access: our free Priority Pass gets you and a guest into 1,000+ airline lounges worldwide.
Lower investing fees: if you also invest with us, Black gives you even lower fees on your investment accounts.
Dedicated Money Coach: one of our financial experts will design a plan to meet your financial goals.

https://www.wealthsimple.com/en-ca/smart-savings

At this time it isn't TFSA eligible. https://help.wealthsimple.com/hc/en-ca/articles/115015399587-Can-I-use-my-Smart-Savings-within-my-TFSA-or-RRSP-Or-can-I-set-up-my-other-Wealthsimple-investment-accounts-in-a-similar-way-

April 5, 2018
2:11 pm
Jon
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Another feature of this account is that it automatically split the money between different CDIC member to insure up to 900000 dollars.

April 5, 2018
2:41 pm
Yatti420
Canada
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Jon said
Another feature of this account is that it automatically split the money between different CDIC member to insure up to 900000 dollars.  

Whats great is the snippet underneath that describes how CDIC coverage applies to the first 100k in your name (whether in trust or otherwise).. I didn't know that..

CDIC coverage is capped at $100,000 per member institution and applies to all your deposits at the member institution proportionately. For example, if you already have $50,000 deposited at a CDIC member bank and have $65,000 deposited at the same bank through your Smart Saving account, CDIC will only insure the first $100,000, and will not insure $15,000 of your deposit.

If you let us know where you have other deposits we can invest anything over $100,000 in another CDIC member firm.

April 5, 2018
4:27 pm
Doug
British Columbia, Canada
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I wouldn't create a forum or add this to the "comparison chart," since it's just WealthSimple offering EQ Bank savings accounts to their clients for uninvested cash. It's definitely worthwhile and, hopefully, will spur the discount brokers to "up their game" in terms of HISA options.sf-cool

I'm glad that you mentioned it, though. It's definitely worthy of having this thread be the "go to place" for all discussions on it, including merging any future discussions on WealthSimple's partnered HISA offering into this thread.

Cheers,
Doug

April 5, 2018
4:32 pm
Doug
British Columbia, Canada
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Jon said
Another feature of this account is that it automatically split the money between different CDIC member to insure up to 900000 dollars.  

While that's a nice feature, it's important to point out that, even if this account is held beneficially in nominee form (like discount brokers) or WealthSimple custodies with EQ Bank separately (haven't looked into the logistics, that $900,000 figure you quote would only work if each joint member had separate WealthSimple RRSP/RRIFs, TFSAs, and non-registered investment accounts. Keep in mind, too, that this isn't for people looking to park money in cash long term. The portfolio management fee (~0.40%) would significantly erode returns. It's great for parking invested cash, though. 🙂

Cheers,
Doug

April 11, 2018
6:53 am
Leafs1967
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What rate do you get above the first $100,000. This weighted rate i can not find anywhere so i have to assume its based on which other member institutions they place these funds and the rates there. So it is possible you get on the first $100 K the 1.70% and then say you have another $500 K that rate on those funds may only be say 1.20%. Unlike other FI's its the same rate. The CDIC insurance is a great feature but the unknown of the rates above the first $100 K is not clear.

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