Stocks are stagnant, many still down from their 2022 highs. Cryptocurrencies have been down and up—but more down than up.
Consequently trading platforms are looking for other ways to add and engage customers.
For example, Wealthsimple has added a new feature to its Cash accounts.
The Toronto fintech this week stated that Wealthsimple Cash accounts are now eligible for up to $300,000 in protection from the Canada Deposit Insurance Corporation.
“As a Wealthsimple customer, you don’t have to worry about the security of your money,” says Wealthsimple thanks to this feature.
When you deposit funds in a CDIC-member bank, they are generally eligible for insurance by the CDIC up to $100,000 per account type at each CDIC member institution for each category.
Wealthsimple is not a CDIC institution or a bank, “But the banks we partner with are tier-1 banks and CDIC member institutions,” the company says.
“If anything were to happen to the banks we work with—and don’t worry, the odds are low: a Canadian bank hasn’t failed since 1996—you don’t have to worry that they’ll take your money with them,” the fintech states.
Since Wealthsimple works with multiple banks, “We can stack your coverage inside a single account,” the company says.
Wealthsimple is also promoting 4% interest on Cash accounts with a balance of at least $100,000.
Financial columnist Rob Carrick calls the move “a unique offer aimed directly at people who have been shuffling money around between banks to stay within deposit insurance limits and maximize interest.”
He believes the brand is targeting “an older crowd than you might associate with the Wealthsimple brand, which has traditionally aimed at a younger clientele,” and because cash is “hot” at the moment.
“Cash is hot right now because interest rates remain high, because cash saved during pandemic lockdowns hasn’t been fully spent, and because there’s a lingering hunger for security in these financially uncertain times,” Carrick explains for The Globe and Mail.
It’s not all about cash, though.
Earlier this year, the Toronto fintech launched Wealthsimple Private Credit in partnership with alternative asset manager Sagard.
The private credit fund is promises monthly payouts with a 9% annualized yield—”designed to outpace other high-yield investments,” according to a statement from the company.
And this private credit investing builds on Wealthsimple’s Venture Fund I, which launched last year to enable everyone to play the long game of venture capital.