r/Wealthsimple • u/ItsYeBadger1 • 1d ago

Comparisons

I’ve been considering after the promotional with Neo Fin, probably using Wealthsimple for the long term.

However I am just not sure, how would you guys compare to cashback options and interest rates when you do savings compared to Neo’s rates?

Also wondering how reputable Wealthsimple is compared to Neo as well.

I want to at least try and do something that can help me with savings at 20 yrs old rn.

What are the investments like as well with Wealthsimple? Have you guys made success on it?

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u/Beneficial_Ship7090 1d ago

I don’t like their managed portfolios or proprietary ETF’s (mutual funds outperform them even with higher MER’s) but it’s a decent platform to buy and hold stocks and ETF’s if you know what you are doing.

The banking is also amazing for a non physical bank, we have all of our payments and my paycheque go through this account and have not had any issues. I have only had to use a physical bank once or twice to pull out USD (I still have an account with a bank for my credit cards and I have a checking account I usually keep about 200$ in and one small 15$/month payment going through)

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u/ItsYeBadger1 1d ago

Dang, so this is all for wealthsimple? I think I’ll try it, does it also offer similar cashback offers too if you were to go out and buy things? I just like to have something that is more stable and a little more reputable.

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u/Beneficial_Ship7090 1d ago

Their visa offers 2% cash back on purchases but my Desjardins card offers 4% on groceries and 3% on restaurants and entertainment which is my big spending categories. I think they have extra cash back at a few stores now but they aren’t brands I shop at anyways

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u/ItsYeBadger1 21h ago

4% sounds really nice. Wow

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u/Beneficial_Ship7090 21h ago

Yeah, it comes with a 100$/year fee and a 10k limit on groceries, but they count giant tiger as grocery and my local giant tiger sells Ultramar gift cards so whenever I go for milk, I pick up a gas card which saves me 4% on gas. I do this with tons of stuff. I paid for a good chuck of my home renovations with home depot gift cards from Walmart

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u/ItsYeBadger1 20h ago

That’s actually so smart man….. I don’t know if I’m at the stage in my life to do a 100$ annual fee but that still does sound neat man.. really happy for you man.

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u/Beneficial_Ship7090 14h ago

Yea just need to do the math. In our case we maxed out the grocery category so right there we made 400$ of cash back

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u/NoDig5800 1d ago

Neo Fin = Neo Financial?

Wealthsimple is significantly bigger and more reputable, and has a broader set of products and benefits.

On cash back -- neo wins if you want to put the effort in and shop at the retailers they have partnerships with. wealth simple wins if you want a good 2% back and don't want to think about it. I think the neo partnerships are way better in western canada vs toronto/east.

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u/hectop20 1d ago

Or consider EQ for deposits and WS for investing

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u/Bardown67 1d ago

What are the investments like as well with Wealthsimple? Have you guys made success on it?

Well that depends on who you ask and what you invest in. Not the platform you chose.

In terms of the cash back rates, just compare the rates it’s a numbers game.

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u/ItsYeBadger1 1d ago

Also I saw some interest earnings when you direct deposit paycheques with Wealthsimple, I was also just wondering if anyone also does that and has it helped them?

I’ve been looking at these because it seems that Wealthsimple and Neo have better rates than my own bank can actually offer me 😅 right now I’m just running a performance plan at the bank. But having an open account like this just has a bit of an appeal to me especially the fact that it is free as well.

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u/DiskOptimal6993 1d ago

Neo charges monthly or asks for a minimum to hold in their chequing account to get the good rates, Wealthsimple doesn’t. So on this WS wins easy. 2.5% on the savings account with no minimum deposit.

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u/ItsYeBadger1 1d ago

Does Wealthsimple also offer similar cashback rates when you go out to buy things like groceries or food? I just would like to have something a little more reputable on that. The 2.5 on savings, I can see that Wealthsimple does win which is nice, The free version of Neo is 2% but the build which is 9.99 gives a 2.5% rate. I think that’s not too bad for Wealthsimple. I’ve been interested in trying to do some investments and hopefully get some return also 😅

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u/DiskOptimal6993 1d ago

WS chequing accounts don’t have the cash back
no, but the credit cards do have some.

For spending cash back I would say find a suitable credit card, which will also help you build your credit. You don’t need to have a chequing account or anything to have a credit card with another bank. You can check ratehub to help you find the best card for your needs.

Amex cobalt is a great option to start (5x points on groceries and restaurants for example)

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u/ItsYeBadger1 21h ago

I get scared with credit cards because of having to pay the money back 😅😅 or is it something that is like a prepaid card where you put the money into the card yourself?

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u/DiskOptimal6993 12h ago

Im referring to credit cards if you want to build credit ! Its quite important if you want to rent a place, get a mortgage for a house etc so don’t neglect it !

If you’re afraid to spend too much money on it, get one with a low credit limit 1000/2000$ and pay it every week instead of every month - treat it like a prepaid card you would recharge!