Wealthsimple Cash pays a variable interest rate set by Peoples Trust Company, which holds all Cash account deposits. The rate is tiered: Basic (free) earns approximately 3.00–3.50%, while Premium ($10/month) and Generation ($20/month) earn approximately 4.00%+. Interest accrues daily and is paid monthly with no minimum balance.
The most important context for this rate: all interest is taxable. Wealthsimple Cash has no registered account option. In a TFSA at a competing institution, the same interest would be tax-free — a meaningful real-dollar difference for Canadians with unused TFSA room.
Wealthsimple Cash Interest Rate by Tier
| Tier | Monthly Cost | Approximate Rate | Annual Interest on $25,000 |
|---|---|---|---|
| Basic | $0 | ~3.00–3.50% | ~$750–$875 |
| Premium | $10 ($120/year) | ~4.00%+ | ~$1,000+ |
| Generation | $20 ($240/year) | ~4.00%+ | ~$1,000+ |
Rates are variable. Always verify the current rate in the Wealthsimple app before making allocation decisions.
Rate Comparison: Wealthsimple Cash vs Canadian Alternatives
| Institution | Rate (approx., 2026) | Registered Accounts Available | Subscription Required |
|---|---|---|---|
| EQ Bank Notice Savings | 3.50–4.25% | Yes (TFSA, RRSP) | No |
| Wealthsimple Cash (Premium) | ~4.00%+ | No | $10/month |
| KOHO (Everything/Premium plans) | Up to 4–5% | No | $9–$19/month |
| Wealthsimple Cash (Basic) | ~3.00–3.50% | No | $0 |
| Neo Money | ~2.25–4%+ | No | $0 |
| Tangerine (promotional) | Up to 4–6% | Yes (TFSA, RRSP, RESP) | $0 |
| Tangerine (standard) | 0.10–1.00% | Yes | $0 |
| Simplii Financial | ~0.40% | Via GICs only | $0 |
The Registered Account Gap
The critical savings comparison is not rate-to-rate but after-tax rate-to-rate:
| Scenario | Balance | Rate | Annual Interest | Marginal Tax (40%) | After-Tax Return |
|---|---|---|---|---|---|
| Wealthsimple Cash Basic (non-registered) | $25,000 | 3.25% | $812 | −$325 | $487 |
| EQ Bank TFSA | $25,000 | 4.00% | $1,000 | $0 | $1,000 |
The $513/year difference in this example — in favour of the EQ Bank TFSA — arises entirely from the tax treatment, not just the rate differential. This gap exists at every income level where marginal tax rates apply. Canadians with unused TFSA room who use Wealthsimple Cash (non-registered) for savings rather than an EQ Bank TFSA are leaving a significant amount on the table.
When Wealthsimple Cash Savings Make Sense
Despite the registered account limitation, there are legitimate reasons to hold savings in Wealthsimple Cash:
1. TFSA room is fully used. Once TFSA and RRSP room is exhausted, non-registered savings need a home. Wealthsimple Cash Basic at 3.00–3.50% competes well with most non-registered savings account options.
2. Operating float for Wealthsimple investments. Investors who move money in and out of Wealthsimple Trade or Invest benefit from keeping a cash buffer in the Cash account — transfers are instant versus 1–3 business days from external banks. Earning 3.00–3.50% while waiting to invest is meaningfully better than leaving funds in a Big Five bank savings account at 0.50–1.00%.
3. Short-term savings goals. For a travel fund or a large purchase in 3–6 months, the non-registered tax hit on a few months of interest at $10,000–$25,000 is modest ($50–$200). The Wealthsimple Cash Basic rate is competitive for this purpose.
How the Rate Is Set
Wealthsimple Cash deposits are held at Peoples Trust Company. Peoples Trust sets the rate in response to Bank of Canada overnight rate movements and competition among digital banks. When the Bank of Canada adjusts its overnight rate, Wealthsimple Cash rates typically follow within weeks. The promotional and standard rate structure can change at any time.