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Overview
You can use your available credit limit as overdraft protection for eligible personal CAD chequing accounts. When enabled, overdraft will automatically cover shortfalls for bill payments and pre-authorized debits by borrowing from your portfolio line of credit. There are no additional fees to use overdraft and you only pay interest on the amount borrowed, which gets added to your loan balance.
Overdraft will cover the following payment types:
- Recurring bill payments
- One time and recurring Interac e-Transfer® transactions
- Pre-authorized debit withdrawals
- Credit card auto-payments
Eligibility
You must have:
- An open portfolio line of credit
- Collateral added to your portfolio line of credit
- Available credit greater than $0
If you have a portfolio line of credit but no collateral added, you will not be able to enable overdraft until you add collateral.
Enable overdraft protection
Follow the steps below to enable overdraft protection:
- Log in to the Wealthsimple app
- Tap your chequing account
- Tap the shield icon to the right of your account balance
- Tap Turn on overdraft
- Review the disclosure, and follow the prompts to confirm
- Log in to your Wealthsimple profile
- Select your chequing account
- Select the shield icon to the right of your account balance
- Select Turn on overdraft
- Review the disclosure, and follow the prompts to confirm
Disable overdraft protection
Follow the steps below to disable overdraft protection:
- Log in to the Wealthsimple app
- Tap your chequing account
- Tap the shield icon to the right of your account balance
- Tap Turn off overdraft
- Log in to your Wealthsimple profile
- Select your chequing account
- Select the shield icon to the right of your account balance
- Select Turn off overdraft
Overdraft on joint chequing accounts
If you're the primary owner of a joint chequing account, turning on overdraft covers every joint account you fund, along with your individual accounts.
- Only one owner can enable overdraft for a joint account at a time. Currently, only the primary account owner can enable this feature.
- Secondary owners can't enable overdraft yet, they'll only see an on/off status. That's planned for a future release.
- Turning off overdraft disables it for every account you fund, individual and joint, at once.
Check coverage per account, and who's funding it, from the Overdraft protection detail screen.
Considerations and limitations
Please consider the limitations below before enabling overdraft protection:
- Overdraft will only work if you have enough available credit limit to cover the amount required for the transaction to go through. Increase your coverage by paying down your loan balance.
- We don't support overdraft protection for USD accounts or Business chequing accounts.
- We don't support the following transaction types:
- Internal transfers
- Withdrawals
- Pay friends
- Prepaid card transactions
- One time bill payments
- One time credit card payments
- Wires
- International transfers
- Sending a cheque and bank drafts
- Cash withdrawals
Frequently asked questions
How does overdraft protection work with a portfolio line of credit?
If you enable overdraft protection, recurring bill payments and pre-authorized debits that would otherwise overdraw an eligible personal CAD chequing account can be covered by automatically borrowing from your portfolio line of credit.
Will I be notified if overdraft protection uses my portfolio line of credit?
Yes. You will receive a notification when your portfolio line of credit is used for overdraft. The activity feed will also indicate which transactions use overdraft.
Can I get overdraft protection on my joint chequing account?
Yes. If you're the primary holder of a joint chequing account and you have overdraft enabled on your portfolio line of credit, it automatically covers your joint account as well as your individual accounts.
I'm a secondary holder on a joint account. Can I turn on overdraft myself?
Not yet. Right now, only the primary holder of a joint account can turn on overdraft coverage for it. We're working on giving secondary holders that ability in a future release.
If I enable overdraft, does it cover all my accounts, or can I choose which ones?
Turning on overdraft protection covers every eligible chequing account you hold, including individual and joint accounts. You can't select individual accounts to include or exclude.
My co-owner has overdraft enabled. Can I turn it off for our joint account?
Only the co-owner who's funding the coverage can turn it off, and doing so turns off overdraft for every account they fund, not just the joint account. If you'd like coverage removed from your joint account, reach out to your co-owner.
Will my co-owner be able to see my portfolio line of credit balance?
No. Your co-owner can see that your joint account has overdraft coverage, but they can't see your portfolio line of credit balance or details.
What happens if I disable overdraft?
Turning off overdraft turns it off for every account you're covering, including any joint accounts, at the same time. There's no way to turn it off for just one account.
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