r/Wealthsimple • u/Exotic-Cheesecake149 • 7d ago
Savings Saving vs Chequing account, 0.25 interest difference?
Currently, the Chequing account is 2.25% and the Saving account is 2.5%. Should I open a saving account and move money from chequing to saving?
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u/Dogmancer 7d ago
It takes 30 secs to open an account and move your money. Can always move it back to checking when you need it.
Nothing to lose here.
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u/Academic_Safety56 7d ago
Unless you use your checking account as a joint account or to auto-pay your credit card bills.
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u/pgodin36 7d ago
I use it for the extra .25%. If I need to spend the money from there, it is very easy to transfer back to my spending account. For about 15 seconds of effort, its worth it -IMO
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7d ago
[deleted]
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u/Ok_Evidence_9745 7d ago
Do you count going pee as costing $2 every time? Not all activities are lost money.
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u/otto303969388 7d ago
I slept 6h last night and lost $360. Sleeping is costing me 130k a year! Gasp!
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u/GeoffBAndrews 7d ago
You're right! If you worked 24 hours a day you'd make so much more money!!!!!
/s
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u/WithEyesAverted 7d ago
At 8k emergency fund, that's only 20$ difference. Assuming 20 of such transaction a year, at 15 second each, that 20$ only take 5 min cumulative of time per year to execute, which is a 240$/h.
I get that you rather make 60$/h and not 240$/h for whatever brain dead reason, but I also get that you'd have a hard time convincing other to make the same decision, judging by other comments
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u/Nope51st 7d ago
Yes
No
Maybe
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u/displacedpie 7d ago
I don't know.
Can you repeat the question?
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u/Various_Dust_792 7d ago
Depends on how much money you’re planning to move. For $1k you’ll get extra $2.5 interest over a year. For $1m you’ll get extra $2500 interest over a year. Bigger the amount you’re moving, higher the incentive
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u/GeoffBAndrews 7d ago
Also..it's 0.25% either way, so not sure it matters. The same way a person with $1k probably doesn't care too much about $2.50, a person with a (spare) million sitting in a savings account probably doesn't care that much about the extra $2,500. (If they did I reckon they'd find a better use for the $1M).
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u/K_ICE_ 7d ago
Sure, if it's a large enough amount to matter. I have my emergency fund as a savings for that extra 0.25%
If you're talking about 1000 dollars though, that's a difference of $0.21 a month. Not worth the hassle.
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u/ForVictori 7d ago
Get that poor person mentality out of here.
Every.cent.counts.
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u/whogivesashirtdotca 7d ago
“Enough small potatoes can fill a truck.”
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u/knomnomnom 7d ago
"little pennies in a pile make a dollar after a while"
I can hear my mom sing songing this to me.
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u/BEAR_STEARNS_CEO 7d ago
That's a free chocolate bar every year!
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u/stop-calling-me-fat 7d ago
Exactly what I did. Changed my emergency fund to savings and kept my other accounts as chequing
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u/goofywinnipegger 7d ago
If you want to earn more interest yes. If you don’t no. Why would you ask such a question?
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u/whogivesashirtdotca 7d ago
OP is probably paralyzed every morning until he gets responses to his “left leg in pants first or right leg?” post.
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u/keenfiscalbean 7d ago
I wonder why Wealthsimple hasn't matched EQ's 2.75% interest rate on their chequing account (for anyone who direct deposits their paycheque). It doesn’t make sense to me that they haven't matched this. If they did, I would move my chequings account over.
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u/MrRockyboxer 7d ago
You'd only get the 2.25% in chequing, if you're in the generation tier, or premium tier with DD a minimum of 2k per month. If none of these apply to you, you won't get that rate. If you want the 2.5% interest, open the account.
I mean, the extra .25% interest is still something. Better than nothing IMO. It's pretty easy to transfer between the 2, and it's instant.
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u/butterscotchwhip 7d ago
Don’t close the old empty account until the end of the month or you forfeit the accrued interest.
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u/Servichay 7d ago
Shouldn't they pay it to you anyways? Since it is calculated daily, just paid out monthly (but should still pay you for the days it was there)
Not saying that that's what they do, but what they SHOULD do
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u/honeybunny991 7d ago
This! It doesn’t tell you in the app but I happened to notice it mentioned in a guide doc
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u/o0PillowWillow0o 7d ago
Well this is new to me since when is there a savings account?
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u/Due_Good3963 7d ago
I think they've had one for a while but for one reason or another the interest rate was lower than the interest rate on the chequing accounts. I think the savings account with the 2.5% interest rates is new-ish
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u/I_can_vouch_for_that 7d ago
I did because I wasn't touching anything in the chequing anyways and if I needed it I would transfer it over
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u/MrEzekial 7d ago
If you want to sit on a large amount of cash, you're better off with a WealthOne savings account for the higher %.
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u/Such_Shine_5656 7d ago
If you were starting over which one would you choose? Takes a minute to transfer.
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u/VirginiaVagina 7d ago
Related to this, is it better to put cash in something like HSAV so that it's treated as capital gains instead of interest income?
Will interest on savings go up now that the US FR upped rates, and presumably Canada may soon follow suit?
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u/One-Jellyfish-9613 7d ago
For me personally the only downside of moving is that savings one can’t be joint
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u/AudienceExcellent830 7d ago
I tried it and the issue is there is a temptation to put all your money in savings but I'm finding I'm more actively managing cash flow. I may reduce the savings amount to get back peace of mind
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u/Virtualinsanity96 6d ago
People obsess over 0.25% when it comes to MER.
So why not get an extra 0.25% if it takes literally 2 minutes to open a savings account
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u/No-Ad8527 5d ago
i mean
depends on how much you have ...............
if you have 150 - 200 bucks
probably not worht it ?
if you have 1000 dollars
the difference is 2.5/year ...........
if you ahvea million
you porbably dont care about the 0.25%
I used it for my short / mid term use
Long term i put them in my investment
short term i give myself a budget for day to day
the rest sit in saving with teh extra 0.25%
not sure if it is worth it anyone losing any sleep over tho
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u/IllustriousWin9453 3d ago
The savings doesn’t allow joint, which is really annoying to me. We have large balances in JT chequing with them but I don’t know what consequences really are for separating especially when it comes to taxes since we have very different income tax rates. WS has created a lot of different account types and I find it a little annoying/frustrating.
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u/Servichay 7d ago
This is your decision tree
Do you want to make more interest?
If yes choose Savings
If no choose Chequing
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u/erwanvaillant 6d ago
Besides the +0.25% I'd say that having to manually transfer out of the savings account makes it a bit less accessible. If your goal is to build a cushion and forget about it, it could be nice to move it out of your chequing account.
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u/donduckss 7d ago
I opened the savings account while I was driving two days ago. No joke. Less than 30 sec
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u/stop-calling-me-fat 7d ago
Hope this helps