Just now, Wealthsimple announced their Credit Card product with a 2% no-capped cashback and no Foreign Transaction (FX) fee. Wealthsimple Presents at Cash Back Credit Card | Wealthsimple
The concepts of how they are distinguish their products are:
- Annual fee waived with monthly paycheque deposit of $4000 (more than $60,000 annual pre-tax income, which aligns with the most VI requirement), or have $100,000 savings, which is a bit of “premium” considering the monthly after-tax income, and or savings requirement.
- Premium metal card with 100k savings
- No FX fees, which is the second bank/institution in Canada to offer
- No category caps, no cash back caps
The cons, I think, of this product are:
- No good insurance coverage
- Not providing good travelling benefits (lounge access, airport priority, or similar)
- Visa cannot be used in Costco Canada
Even though I have my current paycheque to Wealthsimple, do I really want to apply for this card? No. I don’t think the card is competitive enough just yet. Especially when I only need to maintain a daily closing balance of $ 6,000 in Scotiabank to have my VI Passport fee waived (6,000* 2.5% = $150), which also beats the current interest savings Neo offers (and what Wealthsimple offers). In addition, I get some other benefits from the traditional banks (like free bank drafts and cheques, lockbox, etc)
As a very initial Neo user (back in 2020), I think Neo needs something to stand out in the current market. I would also be excited to see Neo’s plans to roll out some exciting new products and some attractive benefits or offers to bring some users back.
This is an open “fact” discussion thread. Please be polite and avoid arguing about personal opinions and preferences.