Wealthsimple Cash Card Review
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Wealthsimple Cash Card
Rewards
- 1% Earn 1% cash back on every purchase.
- 4% Earn 4% interest on accounts with any balance.
- 4.5% Earn 4.5% interest on accounts with a balance of $100,000 or more.
- 5% Earn 5% interest on accounts with a balance of $500,000 or more.
- Welcome Offer None
- Annual Rewards $240 Learn how we calculate this.
- Annual Fee $0
- Minimum Income Required None
Pros
- High-interest earnings
- No account fees
- Automated investing
- No foreign exchange fees
- Increased CDIC protection of $300,000
Cons
- Won’t help you build credit
- Premium features only available with significant asset holdings
The Wealthsimple Cash Card offers a unique financial opportunity for those who want to actively invest in stocks or cryptocurrencies while enjoying a 1% cash back benefit on their purchases. This prepaid card can also be a valuable tool for individuals seeking to manage their spending more effectively, as it restricts expenditures to the loaded amount. It does not, however, help you build credit.
The Wealthsimple Cash Card stands out as a top-tier prepaid card option in Canada. If you have a Wealthsimple Cash account, securing the card is a breeze.
You can begin reaping the benefits of earning 1% cash back on every purchase, and between 4% and 5% interest on various Wealthsimple accounts, depending on your balances.
In this Wealthsimple Cash Card review, we’ll delve into the card’s functionality, potential fees to be mindful of, and the strategies for maximizing your cash back rewards.
Wealthsimple Cash card: an overview
The Wealthsimple Cash card is a prepaid Mastercard you can use to make regular purchases from your Wealthsimple Cash account anywhere that accepts Mastercard. You’ll receive 1% cash back on all your purchases with no annual or monthly fees.
Not a credit card, the Wealthsimple Cash Card is somewhat of a hybrid between a debit and credit card. It’s accepted anywhere Mastercard is accepted, but your limit is determined by how much money you pre-load into your Wealthsimple Cash account. Any purchases you make from your card will withdraw directly from this savings account. So, rather than having access to a revolving amount of credit, you “pre-pay,” so to speak, and can spend that amount to zero.
The card is issued by the People’s Choice Company, which is held in custodial account of the Canadian Western Trust Bank (CWB). Importantly, the CWB is insured by the Canada Deposit Insurance Corporation (CDIC), which ensures that your money is protected in case of a bank failure.
Wealthsimple Cash Card rewards
You’ll receive 1% cash back for all purchases on your Wealthsimple Cash Card, which you can expect to receive within seven days of the transaction.
Wealthsimple also lets you opt in to have your cash back auto invested into funds, stocks, or a cryptocurrency of your choice if you would prefer this to cash.
The Wealthsimple cash account also acts as a high-interest savings account. So, not only do you earn cash back on the money you spend — you can also earn the following interest rate:
- 4% interest for accounts with any balance
- 4.5% interest for accounts with $100,000 or more
- 5% interest for accounts with $500,000 or more
Wealthsimple Cash Card eligibility
To get a Wealthsimple Cash Card, you’ll need to sign up for a Wealthsimple Cash account online. After you register, you can access your account and virtual card through the Wealthsimple app, however you will also receive a physical card in the mail two to three weeks after you sign up. Once you receive your card, you can call 1-877-868-0854 to create a PIN.
To use your card, you’ll need to load money into your Wealthsimple account. Sign in to the app, tap the dollar sign icon, choose “Deposit funds” and then add the amount of money you wish to transfer into your account. After you’ve done this, you can use your card anywhere that accepts Mastercard, including ATMs. The card functions like a debit card and when you make purchases, it will withdraw money directly from your account.
Wealthsimple Cash Card interest rates and fees
Fees
- Annual fee: $0
- Foreign transaction fee: $0 (however, when you make transactions in a different currency, Mastercard will charge you the respective currency conversion fees.)
- ATM withdrawals: $0 (however, you may be charged by a third party for ATM withdrawals — usually $3).
Interest Rates
Because the Wealthsimple Cash Card is a prepaid Mastercard, where you pre-load the money you spend, there are no interest rates associated with purchases.
Wealthsimple Cash Card perks
To decide if the Wealthsimple Cash card is right for you, consider some of its main features and unique offerings:
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No fees
The Wealthsimple Cash card is free, and has no annual or monthly fees.
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Virtual card
When you download the Wealthsimple app, you will have access to your virtual Cash card, so you don’t need to carry around your physical card to make payments. Along with making payments with your virtual card, the app allows you to set up direct deposits, send and receive Interac e-transfers and payments, and more.
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Compatible with Apple Pay and Google Pay
The Wealthsimple Cash card is compatible with Google Pay and Apple Pay so you can make transactions with your mobile device and make online payments easily.
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Increased CDIC coverage
The typical CDIC coverage amount is $100,000, but Wealthsimple ups this coverage to $300,000.
Compare Wealthsimple Cash Card alternatives
Our final thoughts
The Wealthsimple Cash Card is a great option for people who would like to have their money invested in stocks or cryptocurrency on a regular basis or are interested in receiving 1% cash back on their purchases. Having a prepaid credit card may also be a great option for you if you’re trying to limit your spending, since you’re limited to spending the amount of money that you’ve loaded on your prepaid credit card. The Wealthsimple Cash Card isn’t a credit card, however, so it can’t be used to build your credit score. If building your credit score is one of your financial goals, consider choosing another credit card that can influence your credit score.
