Briefing

Wealthsimple launching chequing accounts with 2.4 per cent interest in challenge to banks

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The accounts come with no monthly or low-balance fees. Wealthsimple will also roll out ATM fee reimbursements, foreign-exchange-transaction fees and a tungsten metal card with the accounts. (The Logic)

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Talking point: Today’s move is a challenge to Canada’s big banks. In its press release, Wealthsimple highlights how much more money would accrue at a 2.4 per cent interest rate compared to high-interest savings or traditional chequing accounts from other institutions. At the same time, however, this chequing account is only possible because Wealthsimple has made a deal with two of Canada’s Big Six banks to actually hold the money, as the company does not have a banking licence. Keeping banks happy while trying to take their customers isn’t the only tightrope to walk for Wealthsimple: it’s heavily backed by financial services giant Power Corporation, but so is Koho, which already offers a bank account.