Wealthsimple Launches a Savings Account: 2.5% Interest, No Fees, No Fine Print

Wealthsimple has added a new account type to its lineup: a standalone Savings account paying a flat 2.5% interest rate. It sits alongside the Wealthsimple Cash chequing account and the Registered Savings product, giving Canadians another place to park cash without moving it into the market.

Here is what the new account does, who it is for, and how it stacks up against what Wealthsimple already offers.

What Is the Wealthsimple Savings Account?

The Savings account is a non-registered investment account built specifically for holding cash. It is separate from your Wealthsimple Cash chequing account and from any TFSA, RRSP, or FHSA you might already hold.

A few things to know before opening one:

It is available as an individual account only. Joint Savings accounts are not supported yet.
Business and USD Savings accounts are not supported yet.
You can open up to 10 Savings accounts.
The account has no account number, transit number, or cheque support, so you cannot set up payroll direct deposit directly into it.
It cannot be used as collateral for the Portfolio Line of Credit, and in-kind transfers are not supported.

Anyone eligible to open a Wealthsimple account can open a Savings account.

The Interest Rate: A Flat 2.5%

The headline feature is the rate. The Savings account earns a flat 2.5% interest rate on your cash, regardless of your client tier or whether you have direct deposit set up. That is a meaningful difference from Wealthsimple Cash, where the rate depends on your status and whether direct deposit is active.

Interest is calculated daily and paid out monthly. There are no MER fees on cash held in the account, and you can see your accruing interest and next payout date right on the account screen.

There is also a market rate option. Instead of the standard 2.5%, you can allocate your balance to one of five cash-equivalent ETFs (PSA, ZMMK, HISA, CSAV, or CASH). That rate is an estimated yield, not a guaranteed one, so it moves with the market and could end up lower than the default 2.5%. Withdrawals also take longer in market rate mode, since the ETF has to sell and settle first, usually one business day instead of an instant internal transfer.

CIPF Protection, Not CDIC

This is the detail worth understanding clearly. The Savings account is held through Wealthsimple Investments Inc., a CIRO member firm, so your cash balance is protected by the Canadian Investor Protection Fund (CIPF) for up to $1,000,000.

That is a different type of protection than the CDIC coverage you get on a traditional bank savings account or on Wealthsimple's own chequing product. CIPF protects client assets held at CIRO member firms if the firm becomes insolvent, and coverage is automatic. You don't need to register or apply for it.

For most Canadians, the practical effect is similar: your cash is protected. Just know it is protection through an investment regulator rather than a deposit insurer.

How It Compares to Wealthsimple's Other Cash Products

Wealthsimple now has three different places to hold cash, and it's easy to mix them up:

Wealthsimple Cash (chequing) pays up to 2.25% for Core and Premium clients with direct deposit, and comes with a debit card, e-transfers, and bill payments for everyday spending.

Wealthsimple Savings pays a flat 2.5% regardless of tier or direct deposit, but has no card, no transit number, and is meant purely for parking cash rather than spending it.

Registered Savings (TFSA, RRSP, or FHSA) pays up to 2.75%, tax-sheltered, but only makes sense if you have contribution room available.

If you want the best flat rate with no conditions attached, the new Savings account currently beats Wealthsimple Cash's base rate. If you have registered contribution room left, the Registered Savings account still pays more and shelters the interest from tax.

How to Open a Savings Account

Opening one takes a few taps, either in the app or on the web.

In the app:

Log in to the Wealthsimple app
From the Home tab, scroll to your accounts and tap the add button
Select Open a new account
Tap the Spend & Save tab, then select Savings
Tap Get started and confirm your details

On the web:

Log in to your Wealthsimple profile
Select + Add account from the home page
Select Spend & Save, then Savings
Select Get started and confirm your details

You can fund it with an internal transfer from another Wealthsimple account, a deposit from a linked bank account, or automatically through the Automate Your Pay feature.

New to Wealthsimple? Claim Your $25 Bonus

If you don't have a Wealthsimple account yet, you can open one and go straight into the new Savings account. Sign up with referral code US0EBW, deposit at least $100, and hold it for 30 days to receive a $25 cash bonus, on top of the interest you'll start earning right away. Claim the Wealthsimple bonus.

Verdict

A flat 2.5% with no tier requirements and no direct deposit hoops is a straightforward addition to the Wealthsimple lineup. It won't beat the Registered Savings rate if you have TFSA or RRSP room left, but as a no-conditions place to park cash outside your everyday chequing account, it's a solid option. Just remember: CIPF protection, not CDIC, and no joint accounts for now.

🎁 Claim Your Bonus

Use referral code US0EBW to claim your Wealthsimple bonus and start earning 2.5% today.