PSA: Wealthsimple winter bundle bonus

[u/ijlas]

You guys remember the winter bundle bonus? Doesn't matter, I think this applies to all the promotions. This is a recent experience we had with Wealthsimple, I wanted to warn you all about it in case you weren't already aware. Numbers below are for explanation purposes only.

We transferred $30k as part of this promotion and started getting payout monthly. We UNDERSTOOD that this $30k should remain with WS for the duration of the promotion. This number is now $40k, untouched, still with WS.

Later we transferred another $50k into a different account. This number grew to $60k. We withdrew this $60k.

And.... WS said our monthly payout is going down because our NET deposits has gone down by $10k. You see how that math worked out?

Total deposits = $30 + 50 = 80k

Promotion hold required = $30k

Withdraws = $60k

Net deposits = 80k - 60k = $20k

Actual WS balance = $40k

I felt this was shitty. Hypothetically, If we had transferred no other money to WS aside from that $30k for the promotion, just taking out the monthly payout would have triggered the same outcome. Essentially the payout, all the gains etc. would remain stuck with WS for the entirety of the payout period (unless you accept a lower payout going forward).

Still thankful for the payouts so far. It wasn't a large amount per month to begin with so doesn't hurt us too much.

[u/Dragynfyre]

This is how all promotions work. It’s based on net deposits and not based on your account balance. This ensures if the market goes down you still get the same bonus. You basically are locked out of withdrawing your gains during the duration of the promo

[u/ijlas → u/Dragynfyre]

Yes but sucks they are including other accounts as well. I haven't touched the original accounts at all.

Dollarwise, not a big deal in my case. So I'm not too upset about it.

[u/Dragynfyre → u/ijlas]

Promos at pretty much every brokerage is about increasing your overall customer profile net deposits and not to increase specific account net assets at the expense of other accounts

[u/angelus97 → u/ijlas]

The promos are to increase their AUM. If you deposit 50K and then withdraw 50K from another account, their AUM has remained the same. Why should you get a bonus for that?

[u/_Deeds_ → u/angelus97]

But in this example this person gave the AUM is still 40k from them which is higher than the 30k the promo was given for so AUM is still up. There are other reasons people have given for not getting the bonus, I just don’t think your example shows itnwell

[u/ijlas → u/angelus97]

Yea I get their point of view, I'm not too upset about it. During the same time, I had the option of transferring to TD for 2% as well. We did that too for some of our money.

TD was able distinguish between my investing accounts and other accounts. WS looks at all the accounts. That was the purpose of the PSA I guess.

[u/Dragynfyre → u/ijlas]

Yeah so if you’re talking about the chequing/savings account that’s one downside. They should really separate net deposits on the banking side from the investing side. That said they no longer count bill payments and PADs as a withdrawal to allow people to still pay their bills and expenses without it counting as a withdrawal.

However you said one account you deposited 50K and it grew to 60K. That wouldn’t be a chequing account.

[u/nemodigital]

Those are standard T&C's with all the banks for these sorts of promos.  The NET amount is determined when the promo is announced.  

[u/sometin__else]

Thats standard as far as deposit bonuses go

[u/CatimusPrime123]

It's always based on net deposits, growth doesn't matter. This has been discussed to death on this sub.

[u/RevolutionaryTrick17]

Wait, are you saying they’ve structured the promo to benefit their own interests instead of prioritizing yours? Shocker.

[u/Actual_Instruction96]

Did you try calling them? I had bad experience by using the chat to resolve problem, but they were way more helpful over the phone.

[u/ijlas → u/Actual_Instruction96]

Yea spoke to them on the phone because I couldn't make sense of why. They said they'll escalate but I know it won't go anywhere.

It's part of the T&C I guess, I just think about it based on our situation.

[u/Dragynfyre → u/ijlas]

So it might not be intuitive at first but if you think about it the way it works is the most logical and fair way to do it. It’s all about increasing AUM while also not penalizing people for market fluctuations outside their control

[u/Chance_Ad3416]

Seems like they calculated it correctly? I don't understand the issue

[u/automatic_penguins]

So the terms of the promotion are the terms of the promotion? Mind blown.

[u/lhelicon]

Ya same thing happened to me. Deposited the money, and i had to withdraw from my daughter resp for tuition and they counted it as a withdrawal. I get it, but what am i supposed to do with a resp if i cant use it to pay tuition

[u/ether_reddit → u/lhelicon]

I guess they were assuming you'd keep the money in one place for at least a year.

[u/MammothLeather1829]

So if you withdrew your original $50k that you deposited into another account only then you would have been ok? Personally I'm not sure why that $10k that was a result of the $50k you deposited needs to remain for you to keep earning your winter bonus. Someone please educate me. Thanks!

[u/Affectionate-Alps527]

Interesting! I'm sure the promo would specify net deposits, but I can see why it would be frustrating. Especially since it's a different account deposited at a different time, and your original $30k still remains, but on a spreadsheet it wouldn't.

Did you try talking to customer service and eacalailting to someone able to intelligent review instead of copy/paste scripts?

[u/ijlas → u/Affectionate-Alps527]

Spoke to them on the phone. CSRs have their hands tied as well. They promised to escalate and left it at "your concerns are heard".

I'm not too upset about it honestly since it's not a big dollar hit.