Your interest rate
You receive an annual 0.75% 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 0.75% 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 ~$7.50 for the year (0.75%*1000). However, interest is calculated daily and paid out monthly. Therefore, you will receive ~$0.64 monthly, which is expressed as the following (using May as an example): (31/365)*7.5 = 0.64.
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 0.35% — 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.
Here are a few considerations:
|Interest rate fluctuations are normal, expected, and beyond our control||
|We give you the best rate available to us||
|Lower interest rates may have other positive effects on your finances||