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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
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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
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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
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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.

June 18, 2018
6:39 am
LazyWays
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From Wealthsimple:

To protect your money with us, we split your deposits with other CDIC member institutions every $100,000 increment, up to $800,000. After your first $100,000, you'll see a weighted average that makes your varied interest rate. You'll see the exact interest rate in your Wealthsimple account.

Below are the interest rates for our CDIC member institutions we deposit with. Interest rates are subject to change at any time.

Member institution Current rate
Equitable Bank 1.70%
B2B Bank 1.15%
TD Investment Savings 1.10%
RBC Investment Savings 1.10%
Bank of Nova Scotia Investment Savings 1.10%
ADS Canadian Bank Investment Savings 1.10%
Renaissance High Interest Savings 1.10%
Altamira Cash Performer 1.10%

Last updated April 22, 2018. For the most up to date rates, contact our support team.

For clarification, your interest rate isn't tiered. If you have an account with $100,005, your first $100,000 will have the highest rate from the above list and the $5 will be on the second highest rate. Your exact interest will be weighted against your total account value and shown in your Wealthsimple account.

June 18, 2018
10:14 am
Loonie
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Great deal if you're willing to settle for crappy rates. They are taking a hefty cut for their service.
How hard is it to move your own money around when the difference per 100K is $500p.a. (at 50 basis points)?

OK if you're their investment client and are parking very short term, I suppose. But why wouldn't you just be investing it? As I understand it, they deal only in ETFs.

June 19, 2018
6:39 am
LazyWays
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Right: Wealthsimple deals only in ETFs. Even the cash in Smart Savings account is held like an ETF – symbol EQB500 for deposits in Equitable Bank – price 1.00 CAD each, quantity 0.1 minimum. Any deposit [buy] or withdrawal [sell] activity initiated online takes 1-2 business days.

The web platform does not have the option of initiating an online transfer from Smart Savings to any other account [like Joint / RRSP / TFSA]. That can be done only by Wealthsimple Support. “Unfortunately internal transfer requests involving our Smart Savings accounts are not yet automated with our back office, and would require manual processing. While we can certainly still process internal transfers between accounts, it can take up to 10 business days to complete.“

Wealthsimple and its web platform is fantastic in all other respects.

June 19, 2018
8:01 am
Norman1
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LazyWays said
Right: Wealthsimple deals only in ETFs. Even the cash in Smart Savings account is held like an ETF – symbol EQB500 for deposits in Equitable Bank – price 1.00 CAD each, quantity 0.1 minimum. Any deposit [buy] or withdrawal [sell] activity initiated online takes 1-2 business days.
… 

That is a good deal if Wealthsimple is able to get a special series (EQB 500) of the Equitable Bank HISA that pays 1.7%. The regular series F (EQB 200) currently pays just 1.35%.

However, it is not such a great deal for those who can take the money out and park it themselves into Equitable Bank's direct-to-consumer EQ Bank savings account that pays 2.3%.

Please write your comments in the forum.