Your interest rate
You receive an annual 0.5% interest rate. 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 0.5% annual interest rate.

For example, let's say you deposit $1,000 into a Save account and leave it there for 365 days.

You will receive ~$5.00 for the year (0.5%*1000). However, interest is calculated daily and paid out monthly. Therefore, you will receive ~$0.42 monthly, which is expressed as the following (using May as an example): (31/365)*5 = 0.42.

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 our bank partners change the rate we receive or the Bank of Canada announces a 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 our bank partners and Bank of Canada can impact the interest rates we receive. When the Bank of Canada makes a change to the interest rate, the other Canadian banks and financial institutions are likely to 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

What is the interest rate for Save for Business accounts?
The interest rate for Save for Business accounts is 0.10% — one of the highest rates available for business savings accounts in Canada.

Bank of Canada Interest Rate Changes
Canada’s central bank lowered the benchmark interest rate by 0.5% on March 4, March 13 and March 27, 2020. When that happens, financial institutions across the country reevaluate the rates they offer on savings accounts. We never like lowering our rate, but keep in mind at some point the benchmark rate will likely rise again, and when it does ours will too.

A few additional considerations

Interest rate fluctuations are normal, expected, and beyond our control

• Canada’s central bank sets the benchmark interest rate; eight times per year the Bank of Canada meets to determine whether the rate will increase, decrease, or remain unchanged, based on various economic factors.
• Rate fluctuations are normal. Before the rate changes in 2020, the previous rate had been in place for a relatively long (since October 2018).

We give you the best rate available to us

• When the Bank of Canada changes the benchmark rate, the majority of financial institutions in Canada, including Wealthsimple Save, follow suit.
• The bank partners we work with to offer Wealthsimple Save pay us an interest rate that’s tied to the benchmark rate. When the Bank of Canada lowers the benchmark rate, our bank partners do too. The interest rate they pay us is now lower, which lowers the interest rate we can pay our clients.
• With Wealthsimple Save you’re always getting a transparent, non-promotional rate — no introductory offers, minimum account balances or other “catches”. The rate you see is the rate you get — period.

Lower interest rates may have other positive effects on your finances

• Lower interest rates mean that when you’re borrowing money, you’re paying less for it. So if you’re paying interest on a loan, like a mortgage, you may see lower rates become available