Yes! Your Wealthsimple Smart Savings account is deposited with a Canadian Deposit Insurance Corporation (CDIC) member institution. As a result, your deposits are insured by CDIC up to $100,000 per client, per institution. If you deposit over $100,000, we automatically split your money between multiple CDIC member institutions, giving you up to $800,000 of CDIC insurance coverage through these members.
CDIC coverage is capped at $100,000 per member institution and applies to all your deposits at the member institution proportionately. For example, if you already have $50,000 deposited at a CDIC member bank and have $65,000 deposited at the same bank through your Smart Saving account, CDIC will only insure the first $100,000, and will not insure $15,000 of your deposit.
What is CDIC insurance coverage?
The Canada Deposit Insurance Corporation (CDIC) is a crown corporation that insures deposits held at Canadian banks up to $100,000 per client in case of a bank failure (also called a default). In the unlikely case that a bank holding your Smart Savings deposits were to default, your savings will be protected up to $100,000. You can learn more about CDIC insurance on their website.
CDIC coverage limits apply to all your deposits with a member institution, including any that you have made directly.
If I have over $100,000 in my Smart Savings, will my funds over $100,000 still have CDIC coverage?
Yes, we automatically split your deposits between multiple CDIC member institutions to increase your coverage. If you wish to better understand the risks of putting more than $100,000 with one member institution, please let us know.
Your Wealthsimple investment accounts are protected by the Canadian Investor Protection Fund (more on that here).