Wealthsimple has launched a savings account, its first product outside of investing.
The company said benefits of the Smart Savings account include a 1.7 percent interest rate in Canada that doesn’t expire (it’s one percent in the US), unlimited and free transactions, and no additional fees. There are unlimited withdrawals and deposits count towards Wealthsimple Black, which means clients who save $100,000 or more get VIP airline lounge access, lower fees on investment accounts, and dedicated financial planning.
“Savings accounts are an important tool in any good financial plan, and our clients were asking for a saving option with the same simple, intuitive experience as their investment accounts,” said Michael Katchen, CEO and co-founder of Wealthsimple. “Our purpose is to help everyone reach her or his financial goals — no matter what they are. And I’m really happy that now we’re able to help clients achieve shorter-term savings goals, just like we’ve been helping them with longer-term goals through our investing products.”
Smart Savings launched in beta to existing clients in January. Based on nicknames clients gave their accounts, there are three main ways people have been using Wealthsimple Smart Savings: for emergency savings, big life expenses like daycare and down payments, and for those unique goals including “Chanel double flap” to “Audi S5”.
According to the Canadian Press, Wealthsimple partnered with EQ Bank to offer savings accounts in Canada.
Wealthsimple now manages over $2 billion for over 65,000 clients in Canada, the US, and the UK.