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article imageNew savings account aimed at millennials

By Tim Sandle     Apr 10, 2018 in Business
The company Wealthsimple has launched a new savings account. This is the product from the company outside of its core business of investing. The account is aimed at the tech savvy consumer.
The new financial product is called the ‘Smart Savings’ account and it comes with a competitive 1.7 percent interest rate for those who open the account in Canada. The interest rate differs in other territories (such as being set at one percent in the U.S.) In terms of other features, the account offers unlimited and free transactions. In addition, the account holder can make unlimited withdrawals and deposits.
As with Wealthsimple's other offerings, the new Smart Savings has no account minimum starting amount. A saver can open the account with just $1. In addition, there is no maximum sum.
To develop the product, Wealthsimple has entered into an agreement with the Canadian bank EQ Bank. This development is a sign of Wealthsimple’s steady growth. The company looks after over $2 billion in investment for around 65,000 clients located in Canada, U.S., and the U.K.
These transactions credit a scheme called Wealthsimple Black. With this scheme, account holders who save $100,000 or more receive perks such as airline lounge access; plus financial savings such as reduced fees on investment accounts. There is also financial planning support offered.
The new offering will appeal to millennials who invariably seek out simplicity and digital access to financial products (but who, as a whole, are fairly poor as a demographic at saving). A 2018 Bank of America survey found that 1 in 6 millennials now have $100,000 or more in savings. However, over half stated they had no savings at all. Several digital-led financial companies are attempting to tap into this potential market of millennial non-savers.
According to Michael Katchen, CEO and co-founder of Wealthsimple told Betakit: “Savings accounts are an important tool in any good financial plan, and our clients were asking for a saving option with the same simple, intuitive experience as their investment accounts.”
The financial entrepreneur also said, as quoted by TechVibes: “Our purpose is to help everyone reach her or his financial goals — no matter what they are. And I’m really happy that now we’re able to help clients achieve shorter-term savings goals, just like we’ve been helping them with longer-term goals through our investing products.”
The Smart Savings account has been tested as a beta release, offered to existing clients Wealthsimple from the start of 2018. in January. The account allows users to group their savings into different categories. These can be named by the clients in the form of ‘nicknames’. For instance, the straightforward “emergency savings” to,” big life expenses”, plus the quirkier “Chanel double flap” and “Audi S5”.
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