Wealthsimple Lowering Their Interest Rate

Just got this email

Hi -----, We’re writing to let you know that the interest rate on your Cash account will change from 4.5% to 4%, starting July 29, 2024. Why we’re lowering the rate On July 24 the Bank of Canada lowered its benchmark interest rate — by 0.25% — for the second time since June.

While we consider many factors when determining our Cash account’s interest rate, the Bank of Canada’s benchmark rate is a big one.

And that’s not unique to us — it’s why you’ll often see savings rates across the industry rise and fall with the benchmark.

What this means for the bigger economic picture When central banks (like the Bank of Canada) lower rates, it usually means lower interest rates on your savings. But there are upsides, too (that’s why central banks do it). Lower rates make borrowing – taking out a loan, getting a mortgage — less expensive.

Lower rates can also boost economies. When borrowing is less expensive, it often means people spend more money, and that can improve the performance of stocks and other investments.

What you need to do next Nothing. This change will happen automatically, and you can feel confident that Wealthsimple Cash is still Canada’s highest-interest chequing account.