Your interest rate
You receive an annual 2% interest rate. With Wealthsimple, you get what you see! We do not believe in promotional rates and offer you the best rate we can.
How and when is interest paid?
Interest is calculated daily and paid monthly, usually within the first five business days of the following month. As mentioned above, it is a 2% annual interest rate. For example, let's say you deposit $1,000 into a Smart Savings account and leave it there for 365 days.
You will receive ~$20 for the year (2%*1000). However, interest is calculated daily and paid out monthly. Therefore, you will receive ~$1.7 monthly, which is expressed as the following (using May as an example): (20/365)*31 = 1.70.
Each month you will receive slightly more interest, thanks to the monthly compounding.
Will my interest go down?
Yes, it is possible. Your interest rates are subject to change at any time. We won't move your interest down unless the Bank of Canada announces an interest rate decrease. When this happens, all the banks and financial institutions tend to also decrease the interest rates they offer.
How often will my interest change?
In short, it depends. To add more clarity, it's because the banks control the interest rates. When the Bank of Canada makes a change to the interest rate, the other Canadian banks and financial institutions follow.
How is interest paid?
Interest is paid on the 5th day of each month. If the 5th day is a weekend, it will be paid on the next business day. Interest is calculated daily and paid monthly