Wealthsimple targets banks with ‘spend and save’ account

Toronto-based Wealthsimple announced the launch of a hybrid saving and spending account on Tuesday. 

Wealthsimple Cash is designed to give Canadians access to an account that allows for both everyday purchases while providing a place to grow their money, the company said in a release. 

The new account offers clients a 2.4% interest rate, no monthly account fees, no low-balance fees, no foreign transaction fees worldwide and ATM fee reimbursements, among other features. Clients will access these features through a mobile app and metal card.

According to Wealthsimple’s website, the Wealthsimple Cash card is a prepaid Visa card. Wealthsimple reaffirmed it is “not a bank,” but has “partnered with a program manager to bring you spending features.”

“Canadians are used to the status quo when it comes to everyday banking — multiple accounts, high fees and low interest,” said Michael Katchen, CEO and co-founder, Wealthsimple. “With Wealthsimple Cash, users can enjoy the power of a high interest savings account for all of their day-to-day spending needs.”

Maddie Johnson

Maddie is a freelance writer and editor who has been reporting for Advisor.ca since 2019.