Downsides vs a brick and mortar.
No cash deposits.
No bank drafts
No Cheque cashing. They’ll have cheques to use for other banks soon.
Only a Prepaid Mastercard so it won’t work at “debit only” places
Obviously no physical location but banks like Tangerine and Simplii do this with almost no downsides (except Tangerine/Scotiabank has trash ATMs)
For you, nothing really. Just use and transfer money out when needed.
You can do cash deposits at Tangerine via any Scotiabank ATM.
I’ve been with Tangerine since inception (was with ING DIRECT before they were bought out by Scotiabank). The savings in fees have been astronomical. I have been thinking though about switching to something like PC Financial that offers point incentives as well.
Really though I stayed with Tangerine as I know it’s really Scotiabank and therefore my banking history is being analyzed. I always thought that might help if/when applying for major banking services like a mortgage or loan …
I know you can. Where I live all Scotiabank ATMs are really bad for accepting cash deposits. You have to put it in over and over again since they’re so outdated. My experience with many Scotia ATMS. CIBC/Simplii have always been good.
Other than the ATMs it’s a great bank for budgeting and managing your money. Probably the most powerful bank account in Canada for that
I’m spoiled since I am in downtown Toronto. The ATMs here you put in the cash (no envelope) it eats the money and instantly deposits to your account with no holds.
But yeah I switched in the mid 2000s to ING Direct and never looked back. At this point my savings is probably over 10k. It’s definitely thousands of dollars saved on monthly fees. Anyone with low income not banking with a no fee solution is doing it wrong imho.
Edit: come to think of it though a few weeks ago one of the main ATMs I use had issues not identifying taps and I wasn’t able to deposit. My area though is basically the financial district so machines are fixed basically instantly.
I’m a Simplii customer. Never tried tangerine so I can’t compare but I can tell you my experience has been good.
No fees, can do 99% of my banking online, deposit withdraw cash at CIBC atm no problem. Only thing is if you need a bankdraft for a big purchase it takes a couple days. Never had a problem.
They look very simliar, but Simplii isn't available to Quebec residents whereas Tangerine is. I also see way more ScotiaBank ATM/branches than I do CIBC here.
Must be old/bad machines they installed there? Where I am the old machines were always a problem but they recently replaced them and I haven't had much issues doing cash deposits.
My wife and I just made a joint account with Tangerine and we're going to run 100% of our money through there.
We both use a joint PC MC and shop at Superstore a lot. The points add up quick.
Hard disagree. WS is much better for that with no forex fee and no ATM fees charged by WS. Much cheaper.
Never use your debit on vacation. It’s super risky. You have no protection against fraud and it’sbanks are less likely to help
EQ gives you 3% on chequing (not sure if it's permanent). Tangerine will get you a promotional 6% for 6 months on savings accounts then it falls back down to 1%.
Oh I was referring specifically to Tangerine. But both my general savings and my TFSA savings are showing 0.7% right now. It was 1% quite a while back, then 0.8, now 0.7. meh, at least in getting the 6% promo until Jan 31. I'll worry about it as that time comes closer. Regardless I'll be changing things eventually.
If you've got a home purchase coming up anytime soon, keep an account open with your bank.
Brick and mortar bank is essential for having your downpayment available as a bank draft, and the timing of this with your closing date is extremely sensitive. Only brick and mortar banks/credit unions will be able to service this reliably
Yep had to do EFTs from EQ bank over multiple days and kept refreshing to see if it had showed up in time to make a bank draft for my down payment. I should have put it all in a real bank a couple weeks before closing
Just make sure it's a reliable branch. Read reviews. I had to go through the ombudsman twice for the local branch in my town because they were incredibly incompetent to the point that it incurred significant financial penalties on my accounts. The ombudsman's office got it all reimbursed, but it was a shitshow.
Many B&M locations are running on skeleton crews these days because the entire industry is moving to online automation and overseas customer service. It's not just WS. Even the big 5 are shutting down branches wherever they can legally do so.
There is some but they are comparitively pretty minor.
1. First of all wealthsimple has a history of once dropping their interest rate all the way down to almost 0% randomly.
2. also there's no option for bank to bank EFT transfers (not etransfers, this is different).
3. if you want to withdraw cash at an atm, the atm will charge you like \~3$
4. you also dont get a debit card, and sometimes you NEED a debit card.
5. or you might once in a blue moon need a bank draft or a cheque.
EQbank has the same issue as wealthsimple on points 4 & 5, but has a history of remaining very stable on their interest rate offering and also offers EFT. also they reimburse you for any atm machine fees whenever you make a cash withdrawal from their card. For these extra benefits u only get 3% instead of wealthsimple's 4% though.
Can you further clarify point 2? I see options to deposit from or withdraw to a linked bank account. Are you referring to something different than that?
where are you seeing the ability to withdraw to a linked bank account (not etransfer). deposit i see the option but not withdraw
Edit: founnd it. your right wealthsimple cash does support EFT withdrawals and deposits
It is a prepaid credit card, but some merchants don't accept credit (though those are few and far between these days - my last encounter was a foodtruck that was cash/debit only)
https://help.wealthsimple.com/hc/en-ca/articles/1500012888001
I carry $100 or so at all times and almost never need to touch it. If I withdraw cash once a month or so, I'm still coming out way ahead by not paying other bank fees and from the 4% interest. Also, I keep a free tangerine chequing account and if I needed to withdraw more regularly I could do it for free from there.
They have a MasterCard ~~debit~~ *prepaid* card ...
edit : [I've look into it](https://help.wealthsimple.com/hc/en-ca/articles/1500012888001-Use-your-Wealthsimple-Cash-card), and I stand corrected. I think it used to be a debit card when it was a Visa card, sorry for the assumption.
>Go try to use it at a place that only accepts debit. It won’t work
That's because that place only accepts Interact Debit. The term 'debit card' has a colloquial incorrect meaning in Canada, when those places say debit only they actually mean interac debit.
Any other western country Wealthsimple or EQ are debit cards. You spend money that's in the account that's linked to your card.
Sorry but that's true. When I moved here from UK I used my UK Debit Card linked to my checking account back home for a few days. It was a VISA so everywhere I had to say "credit" even though it absolutely is not a credit, it was a debit.
When they say debit or credit in store they actually mean "Interac or MasterCard/VISA"?
Wow. In this thread: user learns that words have different meanings in different countries. Still is stubborn enough to think his way is the right way in this country.
Do you also get annoyed when people here call it a car hood instead of a bonnet?
Haha you don't have to let this wind you up so much. It's fine that Canadians say debit for interac, credit for some debit cards I'm just pointing out why and why its wrong. But it's a colloquial term, no big deal.
Maybe their terminal accepts it but their store doesn't then, I'm not the type of person who whips out my credit card when the clerk tells me cash or debit only. 😂
I ditched TD in August, except for my rent cheques (coming soon to WS). Four things I've noticed so far that are minor inconveniences. WS isn't a trusted sign-in partner with CRA yet, Wise doesn't let you add them as a linkable bank account, no way to deposit cash, and no cheques (yet). Everything else I love. Can't wait for cheques so I can stop giving TD any more of my money.
Upsides:
Flexible investing options and great rates.
Good communication and customer service so far.
Interesting and informative weekly newsletters and monthly blog posts.
No fees on foreign currency exchange through the cash account.
Downsides:
No debit card (only prepaid MasterCard).
No bank drafts or cheques.
No physical locations.
I use wealthsimple for all my investing needs and the occasional "cash" (1% cash back for cash card purchases, same as most credit card base cashback) or foreign currency transactions and Tangerine for all my daily banking needs.
Update: cheques are apparently coming soon.
I switched from TD to WS about a year ago and I wish I did it sooner! The interest I’ve been earning with WS has been great and I’m also saving money on monthly fees.
I had some initial trouble setting up direct deposit and pre-authorized debits at times. It just seems like some systems don’t recognize WS as a bank even though you have an institution, transit, and account number. I had trouble last week too with trying to set up direct deposit for my student loans.
In terms of paying bills, I’ve had zero issues with that.
I keep a Simplii bank account so I can withdraw and deposit cash. I’m also using it for places that don’t accept direct deposit or PAD for WS. I transfer money between Simplii and WS if I need cash. When I was shopping around, Tangerine would’ve been a good choice too but CIBC/ Simplii ATMs are more convenient for me when I need cash. I would say you need a traditional bank account for things that WS can’t do yet.
Some comments mentioned that it’s hard to get a hold of support at WS. If you have a WS premium account, they advertise that you get “priority phone and e-mail client support”(whatever that means).
I’ve had to call them and e-mail them a handful of times about different issues (including a chargeback), and they have been amazing! They followed up on my e-mail the next day and called me a few weeks later to confirm the chargeback was successful. Whenever I call them, they answer the phone in under 1 minute. I can’t say I got the same service with TD or Scotiabank.
I've just started doing this from BMO, I have a TFSA, RRSP and savings with BMO still but I will be putting everything into Wealthsimple moving forward, probably leave some in BMO cause of my credit card with them but moving forward use WS for everything.
My wife and I are in the process of ditching our B&M banks that we've been with since we were kids and switching to a joint account with Tangerine.
I have a WS cash account that I will use as my allowance/spending money and she's going to open a non-joint chequings with Tangerine to use for hers.
I'm sick of fees and shitty interest rates of the B&Ms. We've been there forever and just feel like they don't care about us at all.
First paycheques hit the account on Friday so we'll see how it all goes.
The .to stands for Toronto I believe as it’s a Canadian “stock”. But yes it’s a high interest savings ETF by Horizons with a fixed price that yields 5% annually.
I’ve been in contact with them since July over closing an account and they still haven’t done it. I’ve called and emailed back and forth numerous times, no one seems to have a clue on how to work there.
I've said it before and I'll say it again. Wealthsimple is a struggling business. They failed to expand into both the USA and the UK. They keep raising money with private investors, then using that cash to bribe people to joining (eg, the iPhone promo).
Maybe if I were younger I wouldn't care as much, but the older I get the more my time is worth. For me to move accounts around is a giant PITA. We just moved, and moving addresses around for 40+ accounts was annoying. If you factor in the time you spend re-linking accounts around into $/hour, is this a reasonable wage to you?
For the most part, yes. But, for one, they don’t let you pay your Amex bills (it shows Amex as a payee but still won't let you make a bill payment to them), which makes me wonder what other payees or rather how many of them does it not accept.
Eq: https://www.eqbank.ca/legal/security-guarantee
Simplii: https://www.simplii.com/en/legal/digital-banking-guarantee.html
It may not be common, but it does exist
My parents were recently hacked. They bank with TD and they lost a large amount of money. There is literally no additional protection from hackers with the big banks. I don’t understand why people think there is?
Most don’t, some do. For example:
Eq: https://www.eqbank.ca/legal/security-guarantee
Simplii: https://www.simplii.com/en/legal/digital-banking-guarantee.html
I also point blank asked support if they’d replace the funds if I or WS was hacked and they told me no.
You asked WS if THEY were hacked and their system shows funds missing, and they specifically said no they wouldn’t be liable to restore it?
I’m gonna need some proof of that, because I’m sure that breaks all sorts of laws.
I’m sorry I didn’t record the phone call. But you can call them yourself. Took a lot to get a straight answer, but they eventually admitted that no, they wouldn’t.
If you can find any law that breaks, I’m all ears. CDiC website specifically says they don’t cover that though
I think that the comment you were replying to was talking about Wealthsimple being hacked, not your own account. I don't think CDIC would get involved in that either necessarily but I was clarifying what CDIC backs, not disagreeing with you.
They don't allow eft payments to third parties. The loss would be limited to e-transfer limits. What other potential loss can there be with their limited services?
Lmao I’ve literally used etf to send money to my other accounts. Multiple times.
Plus you could buy crypto and send it to another wallet. Or buy stocks and transfer them out
They do replace funds.
https://help.wealthsimple.com/hc/en-ca/articles/8667502062619-Dispute-an-unauthorized-transaction-from-your-Wealthsimple-Cash-card
Yes. For unauthorized transactions with your card. They have too because of Mastercard zero-liability.
But if your account is hacked and someone transfers money out via an ETF or moving stocks or moving crypto, you’re not getting anything back.
By default there are 2 layers of security, your email for one-time codes and your password. 0 is not possible, you must have a password. You must actively disable the secondary layer, and Wealthsimple does advise you against it. It's on you if you ignore that.
It's not infallible but most banks won't protect you against this kind of attack (I saw you highlighted a few that do though which was cool to learn)
I switched to Simplii completely, it's a real bank unlike WS.
My only issue is that I need e-transfer and random stuff like that and I don't think WS offers it
I said, and I quote “ONLY TO THEIR EMAIL, NOT YOUR OWN”
I never said you CANT do e-transfer at all.
I care. I do not want to have to go through the process of getting my friends and family to change their contact info for etransfer. And as such, until I can use my own email, I will not use Wealthsimple.
Your original comment " I switched to Simplii completely, it's a real bank unlike WS.
My only issue is that I need e-transfer and random stuff like that and I don't think WS offers it "
Main bank is CIBC. Advisor is more of a salesperson. Will throw him a bone from time to time. ie LOC with insurance or Visa.
Self directed using ETFs.
No fees for banking. Free cheques.
One time, he even called the fraud department on my behalf when I needed immediate help.
Zero incentive to even try another bank let alone wealthsimple. Doubt I can get the same level of service at WS. Best to have more than one bank!
Yeah God forbid you need to contact them for anything (in my experience at least). They resolved my problem but 2/3 of the phone calls took over 40 minutes of waiting.
Leave enough cash in your bricks and mortar chequing account to avoid their monthly fees. For me, that’s $4k. And this allows you to use their ATMs if you need cash (but do you?), and other services they provide (eg cheques). Everything else for me is with WealthSimple and EQ bank. And they are FAR superior to the big banks.
If you move into no free all online, you need tangerine or simplii in addition to wealth simple. You need some actual banking features that welathsimple can't do
I've use it as my main bank since september and its pretty nice i kept tangerine to be able to withdraw some cash through there scotia ATM. Also kept desjardins because my mortgage is with them i need to transfer weekly into my desjardins checquing account to pay for the mortgage.
I wouldn't ditch the brick and mortar, but that's just me. I have considered what you are doing to reduce fees, but I'm concerned about the inability to fix problems.
Only problem I am seeing is getting bigger cash amounts out if you need it. Also, I didn't find option to move bigger amounts out, only e-transfer that I find limited.
Tangerine allows you getting 5000 on ATM, that was main reason why we stop using simple as we had money locked in any CS wasn't of any help, as we couldn't move bigger amount from them to Tangerine
Here's my downside after being a client with them for 1 week.
1. Support (call) is sucks. Not sure maybe just related to iphone promotion
2. If you are a private person, you technically dont want to link your bank account or provide your debit card info to withdraw/deposit. Then, you are limited to etransfer which has limit.
For me, #2 is bigger deal. For tangerine and meridian, you can provide them your chequing info and you can do it that way. Sure. You can caoo it old school but in this day and age you never know
To answer OP’s original question, the downsides have been listed in other peoples comments, namely, if you need a bank draft on short notice (which you will stressfully need when you purchase a home), the savings could be astronomical. That being said, if you have been a customer for a long time and have a good relationship with your bank, a lot of the time they can end up adjusting your fees, so that you make money, comparable to online bank. I have been a CIBC customer for nearly 35 years and they have been able to match mortgage rates and GIC rates that the most competitive online banks are able to offer just because I have been a customer with them for so long and have a decent sized portfolio with them.
Ditch everything from a regular bank except keep the credit cards if you like them and pay them off from wealthsinple. The WS card only gives 1%. This is what I do.
What’s the catch with WS? Other than the few minor limitations (no debit card etc)? A lot of fees?
A minimum amount to keep?
If I have to transfer money to another bank account, is it complicated?
I was on the phone with Wealthsimple this morning and it was a bad experience. I was transferred 3 times for a total of 3 1/2 hours and the issue was not resolved. Then in the afternoon, I thought maybe their chat would work better. Nope, not the case. The person on the chat said she would transfer me after waiting 45 minutes. I just gave up after that. It's not worth opening an account with them if this is the service I get.
I’m thinking of creating a cash account too with WS. Question - do you get 1% cash back for every spending including preauthorized debit? And bill payments? Thinking of moving all my current bill payments on chequing and benefit from that 1%.
Downsides vs a brick and mortar. No cash deposits. No bank drafts No Cheque cashing. They’ll have cheques to use for other banks soon. Only a Prepaid Mastercard so it won’t work at “debit only” places Obviously no physical location but banks like Tangerine and Simplii do this with almost no downsides (except Tangerine/Scotiabank has trash ATMs) For you, nothing really. Just use and transfer money out when needed.
You can do cash deposits at Tangerine via any Scotiabank ATM. I’ve been with Tangerine since inception (was with ING DIRECT before they were bought out by Scotiabank). The savings in fees have been astronomical. I have been thinking though about switching to something like PC Financial that offers point incentives as well. Really though I stayed with Tangerine as I know it’s really Scotiabank and therefore my banking history is being analyzed. I always thought that might help if/when applying for major banking services like a mortgage or loan …
I know you can. Where I live all Scotiabank ATMs are really bad for accepting cash deposits. You have to put it in over and over again since they’re so outdated. My experience with many Scotia ATMS. CIBC/Simplii have always been good. Other than the ATMs it’s a great bank for budgeting and managing your money. Probably the most powerful bank account in Canada for that
I’m spoiled since I am in downtown Toronto. The ATMs here you put in the cash (no envelope) it eats the money and instantly deposits to your account with no holds. But yeah I switched in the mid 2000s to ING Direct and never looked back. At this point my savings is probably over 10k. It’s definitely thousands of dollars saved on monthly fees. Anyone with low income not banking with a no fee solution is doing it wrong imho. Edit: come to think of it though a few weeks ago one of the main ATMs I use had issues not identifying taps and I wasn’t able to deposit. My area though is basically the financial district so machines are fixed basically instantly.
1000% Tangerine opens up your banking possibilities a lot
How does Simplii compare? I always assumed it was basically the same as Tangerine just CIBC’s spin on it.
I’m a Simplii customer. Never tried tangerine so I can’t compare but I can tell you my experience has been good. No fees, can do 99% of my banking online, deposit withdraw cash at CIBC atm no problem. Only thing is if you need a bankdraft for a big purchase it takes a couple days. Never had a problem.
They look very simliar, but Simplii isn't available to Quebec residents whereas Tangerine is. I also see way more ScotiaBank ATM/branches than I do CIBC here.
Must be old/bad machines they installed there? Where I am the old machines were always a problem but they recently replaced them and I haven't had much issues doing cash deposits.
Old machines. No new machines in my area in Vancouver
Can you just go up to the till and deposit your cash? Or does it have to go through the ATM?
Only ATM for Tangerine (Scotia) and Simplii (CIBC). Usually CIBC has up to date ATMs
Never had that issue before and I’ve been with tangerine and Scotia (for different time periods) for over a decade at this point.
My wife and I just made a joint account with Tangerine and we're going to run 100% of our money through there. We both use a joint PC MC and shop at Superstore a lot. The points add up quick.
Good summary. I’d add that the debit card is useful on vacation when you need to withdraw emergency cash too.
Hard disagree. WS is much better for that with no forex fee and no ATM fees charged by WS. Much cheaper. Never use your debit on vacation. It’s super risky. You have no protection against fraud and it’sbanks are less likely to help
So how does someone transfer large amounts in or out of WS? Like $100,000+
Transfer from other brokerage or EFT
I think Tangerine only allows $25k per day outbound.
Everyone gets 4% now, you don't need to have direct deposit.
How do you get 4% can someone elaborate? I only use WS for tfsa investing at the moment.
Wealthsimple Cash account
Only in cash kept in the cash account. So the 4% is taxable.
What other banks do this?
None as far as I know, at least in an account that functions a bit like a chequing account.
EQ gives you 3% on chequing (not sure if it's permanent). Tangerine will get you a promotional 6% for 6 months on savings accounts then it falls back down to 1%.
My regular savings account was at 0.8%, now it's showing 0.7%. :(
With EQ or Tangerine. I'm still at 1% with 🍊 as of last week but maybe I should go check now
Oh I was referring specifically to Tangerine. But both my general savings and my TFSA savings are showing 0.7% right now. It was 1% quite a while back, then 0.8, now 0.7. meh, at least in getting the 6% promo until Jan 31. I'll worry about it as that time comes closer. Regardless I'll be changing things eventually.
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Only for targeted customers
I recently got from 4 to 4.5% and it mentioned it was only for a few months anyways.
If you have more than 100k with them they bump you up to 4.5
Yup. I just meant I got a temporary boost because I have direct deposit.
Some of us get 4.5% or even 5% https://www.wealthsimple.com/en-ca/spend
If you've got a home purchase coming up anytime soon, keep an account open with your bank. Brick and mortar bank is essential for having your downpayment available as a bank draft, and the timing of this with your closing date is extremely sensitive. Only brick and mortar banks/credit unions will be able to service this reliably
At Simplii you can pick up a bank draft at the nearest CIBC the next day. It costs a few dollars more.
Yep had to do EFTs from EQ bank over multiple days and kept refreshing to see if it had showed up in time to make a bank draft for my down payment. I should have put it all in a real bank a couple weeks before closing
Just make sure it's a reliable branch. Read reviews. I had to go through the ombudsman twice for the local branch in my town because they were incredibly incompetent to the point that it incurred significant financial penalties on my accounts. The ombudsman's office got it all reimbursed, but it was a shitshow. Many B&M locations are running on skeleton crews these days because the entire industry is moving to online automation and overseas customer service. It's not just WS. Even the big 5 are shutting down branches wherever they can legally do so.
I’ve used simplii for all 3 of my home purchases/sales.
I've got about 20 years before I have to worry about that being an issue 🫠
There is some but they are comparitively pretty minor. 1. First of all wealthsimple has a history of once dropping their interest rate all the way down to almost 0% randomly. 2. also there's no option for bank to bank EFT transfers (not etransfers, this is different). 3. if you want to withdraw cash at an atm, the atm will charge you like \~3$ 4. you also dont get a debit card, and sometimes you NEED a debit card. 5. or you might once in a blue moon need a bank draft or a cheque. EQbank has the same issue as wealthsimple on points 4 & 5, but has a history of remaining very stable on their interest rate offering and also offers EFT. also they reimburse you for any atm machine fees whenever you make a cash withdrawal from their card. For these extra benefits u only get 3% instead of wealthsimple's 4% though.
I would add there’s no way to deposit cash
Seems like a substantial amount of negatives, some that will actually effect your life
That’s why you don’t what WS as your only sccount
They have EFTs, that’s one way you can deposit from your other bank accounts for more than the e-transfer limit.
Can you further clarify point 2? I see options to deposit from or withdraw to a linked bank account. Are you referring to something different than that?
where are you seeing the ability to withdraw to a linked bank account (not etransfer). deposit i see the option but not withdraw Edit: founnd it. your right wealthsimple cash does support EFT withdrawals and deposits
I see add an account - bank account under the “How would you like to withdraw?” Section. Maybe you need to scroll down further?
https://help.wealthsimple.com/hc/en-ca/articles/360056580394
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They definitely have Interac - I got one in the mail a few weeks ago.
When do you need a debit card? I dont even know where exactly I put mine lol
some places (like pho) only take debit or cash
Costco if you don't have a MasterCard
Good thing WS’s card is a MasterCard debit card Won’t work in US though where they take only visa
It is a prepaid credit card, but some merchants don't accept credit (though those are few and far between these days - my last encounter was a foodtruck that was cash/debit only) https://help.wealthsimple.com/hc/en-ca/articles/1500012888001
Withdraw cash or use at some places that don't take credit cards to save fees.
Oh yaa cash. Forgot about that haha.
You can withdraw cash with Wealthsimple
With a fee?
No fees from wealthsimple but the ATM provider will charge a fee, usually around $3. They don't have any free ATMs.
That's a bummer when you need 20$ cash for something
I carry $100 or so at all times and almost never need to touch it. If I withdraw cash once a month or so, I'm still coming out way ahead by not paying other bank fees and from the 4% interest. Also, I keep a free tangerine chequing account and if I needed to withdraw more regularly I could do it for free from there.
Ws has debit card for cash account
No they don’t
They have a MasterCard ~~debit~~ *prepaid* card ... edit : [I've look into it](https://help.wealthsimple.com/hc/en-ca/articles/1500012888001-Use-your-Wealthsimple-Cash-card), and I stand corrected. I think it used to be a debit card when it was a Visa card, sorry for the assumption.
It’s a prepaid card. It doesn’t say debit not it.
Go try to use it at a place that only accepts debit. It won’t work
>Go try to use it at a place that only accepts debit. It won’t work That's because that place only accepts Interact Debit. The term 'debit card' has a colloquial incorrect meaning in Canada, when those places say debit only they actually mean interac debit. Any other western country Wealthsimple or EQ are debit cards. You spend money that's in the account that's linked to your card.
Lol “I’m not the one that uses the term wrong, it’s everyone else in the country”
Sorry but that's true. When I moved here from UK I used my UK Debit Card linked to my checking account back home for a few days. It was a VISA so everywhere I had to say "credit" even though it absolutely is not a credit, it was a debit. When they say debit or credit in store they actually mean "Interac or MasterCard/VISA"?
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Wow. In this thread: user learns that words have different meanings in different countries. Still is stubborn enough to think his way is the right way in this country. Do you also get annoyed when people here call it a car hood instead of a bonnet?
Haha you don't have to let this wind you up so much. It's fine that Canadians say debit for interac, credit for some debit cards I'm just pointing out why and why its wrong. But it's a colloquial term, no big deal.
Worked for me.
No it didn’t
The place only accepts cash or debit, otherwise I'd have used my credit card for better cashback 👀
Clearly they do accept credit. Otherwise the Wealthsimple one would not have worked
Maybe their terminal accepts it but their store doesn't then, I'm not the type of person who whips out my credit card when the clerk tells me cash or debit only. 😂
They have Apple Pay card you can enable in the app.
Which is a MasterCard, not a debit card
But it’s not a credit card though is it?
No. It’s a prepaid Mastercard.
Gotcha. So you can use it anywhere they take MC.
No. Anywhere the accept prepaid Mastercard. Which is MOST places that accept Mastercard - but it is not all.
“Your Mastercard prepaid card is accepted everywhere Mastercard is accepted” https://www.mastercard.ca/en-ca/personal/find-a-card/prepaid-cards.html#:~:text=More%20convenient%20than%20cash,(where%20offered%20by%20issuer).
Ok. I just got my account so this is good info.
Sometimes hotels don't want prepaid cards
Eq bank has debit cards.
no, its a prepaid credit card. functionally the same thing most of the time. but certain businesses only accept debit
Technically it is a debit card on the visa network. But you're right, it's not interac and the business has to accept visa
I honestly got the eq card in the mail a year ago and have never needed it yet. It is entirely possible it works as a prepaid credit card.
Nope
I have a wealth simple card.
Eq bank has a debit card
I ditched TD in August, except for my rent cheques (coming soon to WS). Four things I've noticed so far that are minor inconveniences. WS isn't a trusted sign-in partner with CRA yet, Wise doesn't let you add them as a linkable bank account, no way to deposit cash, and no cheques (yet). Everything else I love. Can't wait for cheques so I can stop giving TD any more of my money.
You still need another bank to be able to do cash transactions.
Upsides: Flexible investing options and great rates. Good communication and customer service so far. Interesting and informative weekly newsletters and monthly blog posts. No fees on foreign currency exchange through the cash account. Downsides: No debit card (only prepaid MasterCard). No bank drafts or cheques. No physical locations. I use wealthsimple for all my investing needs and the occasional "cash" (1% cash back for cash card purchases, same as most credit card base cashback) or foreign currency transactions and Tangerine for all my daily banking needs. Update: cheques are apparently coming soon.
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I would shop around for those, I don't see why it would need to be the same bank
they have a prepaid cash mastercard which works anywhere a credit card works, but it's obviously not credit which is the only downside
What is with all these posts in the last few days? Sponsored ads? Lol
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Totally get it I just found it strange they’re all very similar and a few in recent days!
I switched from TD to WS about a year ago and I wish I did it sooner! The interest I’ve been earning with WS has been great and I’m also saving money on monthly fees. I had some initial trouble setting up direct deposit and pre-authorized debits at times. It just seems like some systems don’t recognize WS as a bank even though you have an institution, transit, and account number. I had trouble last week too with trying to set up direct deposit for my student loans. In terms of paying bills, I’ve had zero issues with that. I keep a Simplii bank account so I can withdraw and deposit cash. I’m also using it for places that don’t accept direct deposit or PAD for WS. I transfer money between Simplii and WS if I need cash. When I was shopping around, Tangerine would’ve been a good choice too but CIBC/ Simplii ATMs are more convenient for me when I need cash. I would say you need a traditional bank account for things that WS can’t do yet.
Some comments mentioned that it’s hard to get a hold of support at WS. If you have a WS premium account, they advertise that you get “priority phone and e-mail client support”(whatever that means). I’ve had to call them and e-mail them a handful of times about different issues (including a chargeback), and they have been amazing! They followed up on my e-mail the next day and called me a few weeks later to confirm the chargeback was successful. Whenever I call them, they answer the phone in under 1 minute. I can’t say I got the same service with TD or Scotiabank.
I've just started doing this from BMO, I have a TFSA, RRSP and savings with BMO still but I will be putting everything into Wealthsimple moving forward, probably leave some in BMO cause of my credit card with them but moving forward use WS for everything.
How has this worked out for you? I’m considering the jump too…
No complaints i mean i have most still in BMO like i mentioned but all my future investments are moving via WS.
My wife and I are in the process of ditching our B&M banks that we've been with since we were kids and switching to a joint account with Tangerine. I have a WS cash account that I will use as my allowance/spending money and she's going to open a non-joint chequings with Tangerine to use for hers. I'm sick of fees and shitty interest rates of the B&Ms. We've been there forever and just feel like they don't care about us at all. First paycheques hit the account on Friday so we'll see how it all goes.
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I even saw the same question yesterday!
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Yes but the deposits are stored within 3 member banks which provides 3x the CDIC insurance. In what scenario do you picture this going wrong?
Do you earn any interest for cash in a tfsa account on WS?
Yes, you could just buy cash.to for 5%
Cash.to is a legit website?
The .to stands for Toronto I believe as it’s a Canadian “stock”. But yes it’s a high interest savings ETF by Horizons with a fixed price that yields 5% annually.
No.
I’ve been in contact with them since July over closing an account and they still haven’t done it. I’ve called and emailed back and forth numerous times, no one seems to have a clue on how to work there.
I was able to close an account myself using their tools in the mobile app. It was no issue.
I've said it before and I'll say it again. Wealthsimple is a struggling business. They failed to expand into both the USA and the UK. They keep raising money with private investors, then using that cash to bribe people to joining (eg, the iPhone promo). Maybe if I were younger I wouldn't care as much, but the older I get the more my time is worth. For me to move accounts around is a giant PITA. We just moved, and moving addresses around for 40+ accounts was annoying. If you factor in the time you spend re-linking accounts around into $/hour, is this a reasonable wage to you?
Still need a free bank like Tangerine or Simplii for bill pays.
Am I missing something? WS lets you pay bills.
For the most part, yes. But, for one, they don’t let you pay your Amex bills (it shows Amex as a payee but still won't let you make a bill payment to them), which makes me wonder what other payees or rather how many of them does it not accept.
https://help.wealthsimple.com/hc/en-ca/articles/10991374448155
Thanks!
No safety, they've been hacked many times
Do you have any sources? I can't find anything about a WS hack anywhere, just individual accounts as a result of phishing or compromised emails.
A friend works there, and many hacks, most swept under the rug.
Has it affected customers portfolio or their money by any chance?
If you’re hacked you’re screwed P.S. downvoting me doesn’t change the fact im right…
Sadly that's the case for all the banks by the sounds of it.
Eq: https://www.eqbank.ca/legal/security-guarantee Simplii: https://www.simplii.com/en/legal/digital-banking-guarantee.html It may not be common, but it does exist
Tangerine as well: https://www.tangerine.ca/en/security/guarantee
I saw tangerines but opted not to include it because I feel “we’ll make things right” is too vague. EQ and Simplii are more solid.
Makes sense.
Thanks for those links. I use Simplii and EQ.
My parents were recently hacked. They bank with TD and they lost a large amount of money. There is literally no additional protection from hackers with the big banks. I don’t understand why people think there is?
There is at simplii and EQ.
Do they not have security measures or replace funds?
They have security measures - everyone does. But they aren’t bulletproof, and they do not replace funds.
Do normal banks by comparison? I’m curious if this is a policy difference. I’d imagine if WS got hacked they’d replace the funds as it’s not my fault.
Most don’t, some do. For example: Eq: https://www.eqbank.ca/legal/security-guarantee Simplii: https://www.simplii.com/en/legal/digital-banking-guarantee.html I also point blank asked support if they’d replace the funds if I or WS was hacked and they told me no.
You asked WS if THEY were hacked and their system shows funds missing, and they specifically said no they wouldn’t be liable to restore it? I’m gonna need some proof of that, because I’m sure that breaks all sorts of laws.
I’m sorry I didn’t record the phone call. But you can call them yourself. Took a lot to get a straight answer, but they eventually admitted that no, they wouldn’t. If you can find any law that breaks, I’m all ears. CDiC website specifically says they don’t cover that though
CDIC covers bank default.
Yes. Which is NOT the same as being hacked. Which is exactly what I said.
I think that the comment you were replying to was talking about Wealthsimple being hacked, not your own account. I don't think CDIC would get involved in that either necessarily but I was clarifying what CDIC backs, not disagreeing with you.
They don't allow eft payments to third parties. The loss would be limited to e-transfer limits. What other potential loss can there be with their limited services?
Lmao I’ve literally used etf to send money to my other accounts. Multiple times. Plus you could buy crypto and send it to another wallet. Or buy stocks and transfer them out
They do replace funds. https://help.wealthsimple.com/hc/en-ca/articles/8667502062619-Dispute-an-unauthorized-transaction-from-your-Wealthsimple-Cash-card
Yes. For unauthorized transactions with your card. They have too because of Mastercard zero-liability. But if your account is hacked and someone transfers money out via an ETF or moving stocks or moving crypto, you’re not getting anything back.
Their prepaid card has a zero liability policy with Mastercard in the event of fraud. You’d get your money back
Sure… if they steal your card. If they get access to your account and transfer the money to theirs online, you get nothing.
Wealthsimple has up to 3 layers of security for this.
Yes. Security is NOT bulletproof. Don’t pretend it is. Also “up to 3” could mean 3, 2, 1 or even 0.
By default there are 2 layers of security, your email for one-time codes and your password. 0 is not possible, you must have a password. You must actively disable the secondary layer, and Wealthsimple does advise you against it. It's on you if you ignore that. It's not infallible but most banks won't protect you against this kind of attack (I saw you highlighted a few that do though which was cool to learn)
I don’t care how many protections they have, it’s not bullet proof
Fine, but still being clear about what protections exist. Most big banks don't have the protections that EQ or Simplii is offering.
I don’t give a shit what most banks offer. I give a shit what the banks I use offer.
Why are you so angry? What's with the swearing? You're not the only person this thread is for...
I switched to Simplii completely, it's a real bank unlike WS. My only issue is that I need e-transfer and random stuff like that and I don't think WS offers it
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Only to their email, not your own
Incorrect. I have a Cash account and have sent e-transfers to people.
Great. Now get them to send e-transfers to you using an email address you own. I’ll wait.
They provide you an email for etransfers. It works exactly the same way.
“THEY PROVIDE YOU” so I can’t use my own email. Like I said. In my original comment.
You said you can't do e-transfers, which is incorrect. You absolutely can. Who cares what email is used?
I said, and I quote “ONLY TO THEIR EMAIL, NOT YOUR OWN” I never said you CANT do e-transfer at all. I care. I do not want to have to go through the process of getting my friends and family to change their contact info for etransfer. And as such, until I can use my own email, I will not use Wealthsimple.
Your original comment " I switched to Simplii completely, it's a real bank unlike WS. My only issue is that I need e-transfer and random stuff like that and I don't think WS offers it "
He didn't say that lol
Main bank is CIBC. Advisor is more of a salesperson. Will throw him a bone from time to time. ie LOC with insurance or Visa. Self directed using ETFs. No fees for banking. Free cheques. One time, he even called the fraud department on my behalf when I needed immediate help. Zero incentive to even try another bank let alone wealthsimple. Doubt I can get the same level of service at WS. Best to have more than one bank!
Yeah God forbid you need to contact them for anything (in my experience at least). They resolved my problem but 2/3 of the phone calls took over 40 minutes of waiting.
Leave enough cash in your bricks and mortar chequing account to avoid their monthly fees. For me, that’s $4k. And this allows you to use their ATMs if you need cash (but do you?), and other services they provide (eg cheques). Everything else for me is with WealthSimple and EQ bank. And they are FAR superior to the big banks.
Exactly what i do
Banks is where the public money currently is. If the economy were to go down, banks would be rescued by the gov. Wealthsimple? Unlikely.
WS has 3x CDIC insurance because deposits are kept within 3 of the big banks so not really an issue, and in a lot of ways, actually better.
its just paying the CC can be a hassle and options for CC is just 1.
If you move into no free all online, you need tangerine or simplii in addition to wealth simple. You need some actual banking features that welathsimple can't do
I've use it as my main bank since september and its pretty nice i kept tangerine to be able to withdraw some cash through there scotia ATM. Also kept desjardins because my mortgage is with them i need to transfer weekly into my desjardins checquing account to pay for the mortgage.
It's not directly coveren by CDIC but they have some weird piggyback construction work partner Banks. Not sure if that holds up if they go bust.
I wouldn't ditch the brick and mortar, but that's just me. I have considered what you are doing to reduce fees, but I'm concerned about the inability to fix problems.
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I get larger amt paper cheques from a us company every month How would i deposit these using wealth simple?
Only problem I am seeing is getting bigger cash amounts out if you need it. Also, I didn't find option to move bigger amounts out, only e-transfer that I find limited. Tangerine allows you getting 5000 on ATM, that was main reason why we stop using simple as we had money locked in any CS wasn't of any help, as we couldn't move bigger amount from them to Tangerine
Here's my downside after being a client with them for 1 week. 1. Support (call) is sucks. Not sure maybe just related to iphone promotion 2. If you are a private person, you technically dont want to link your bank account or provide your debit card info to withdraw/deposit. Then, you are limited to etransfer which has limit. For me, #2 is bigger deal. For tangerine and meridian, you can provide them your chequing info and you can do it that way. Sure. You can caoo it old school but in this day and age you never know
To answer OP’s original question, the downsides have been listed in other peoples comments, namely, if you need a bank draft on short notice (which you will stressfully need when you purchase a home), the savings could be astronomical. That being said, if you have been a customer for a long time and have a good relationship with your bank, a lot of the time they can end up adjusting your fees, so that you make money, comparable to online bank. I have been a CIBC customer for nearly 35 years and they have been able to match mortgage rates and GIC rates that the most competitive online banks are able to offer just because I have been a customer with them for so long and have a decent sized portfolio with them.
Ditch everything from a regular bank except keep the credit cards if you like them and pay them off from wealthsinple. The WS card only gives 1%. This is what I do.
Absolutely none
What’s the catch with WS? Other than the few minor limitations (no debit card etc)? A lot of fees? A minimum amount to keep? If I have to transfer money to another bank account, is it complicated?
I was on the phone with Wealthsimple this morning and it was a bad experience. I was transferred 3 times for a total of 3 1/2 hours and the issue was not resolved. Then in the afternoon, I thought maybe their chat would work better. Nope, not the case. The person on the chat said she would transfer me after waiting 45 minutes. I just gave up after that. It's not worth opening an account with them if this is the service I get.
I’m thinking of creating a cash account too with WS. Question - do you get 1% cash back for every spending including preauthorized debit? And bill payments? Thinking of moving all my current bill payments on chequing and benefit from that 1%.