Note: While WealthSimple does offer banking products, readers should remember that it is technically not a banking institution, and hence, may not have access to the same products and features as full-fledged banks.
WealthSimple vs. EQ Bank
Both of these online services offer no fees and somewhat similar range of products—though EQ Bank rises above when it comes to GICs and high-interest savings accounts. That being said, WealthSimple’s cash account, so long as the direct deposit feature is utilized, outperforms EQ’s 2.5% interest rate. Some customers may view that as a big “if”, however.
Where EQ’s services exceed WS’s is with their similar prepaid cards. WS’s Cash card offers 1% cash back with standard ATM fees. EQ’s card has no ATM fees, 0.5% cashback and any balance gains 2.5% interest; no strings attached.
WealthSimple vs. Simplii Financial
Though the CIBC division matches WS with a no-fee structure, it lags behind in terms of interest rates. Their chequing account offers a maximum interest rate of 0.10%, which is dwarfed by WealthSimple’s lowest 1.0% rate. Additionally, Simplii’s savings account only approaches WS’s 1.5% after a customer places over $500,000 in the account.
On the other hand, Simplii has much more to offer in the way of features. They provide their clients with access to credit cards, mortgages, lines of credits, mutual fund investment opportunities and a plethora of account types. Note that WealthSimple does offer corporate banking opportunities where Simplii does not.
WealthSimple vs. Tangerine
As compared with Simplii Financial, WealthSimple provides a better interest rate when matched against Tangerine’s core chequing account offering: the No-Fee Daily account. It comes in at a maximum of 0.10% interest. Tangerine’s savings accounts also slightly fall behind WS’s, coming in at 1.0%. Note that Tangerine’s TFSA and RSP accounts do accrue interest at the same rate, whereas WealthSimple’s registered accounts are used for investing purposes.
As noted in other comparisons, WealthSimple’s lack of GICs and diverse banking options is also clearly seen when compared to this online bank. Yet, WS’s investment fees are lower than Tangerine’s ETF portfolios by up to 0.25%.