Understand how CDIC coverage works in your Cash account

As a Wealthsimple client, you are entitled to coverage so that your money stays your money. The funds in all of your individual and joint Cash accounts are placed in trust with up to five tier 1, CDIC-member, regulated Canadian financial institutions. CDIC protection against the failure of these banks extends to Wealthsimple Cash account holders for up to $500,000 CAD across all Cash accounts.

Note: Applicable coverage varies depending on the type of Wealthsimple account you have. Make sure to check out our article on how we keep your money safe to learn about all the different ways you’re protected.

How it works

General coverage with Wealthsimple Cash and Save accounts

Through CDIC, member financial institutions, like banks are able to insure up to $100,000 CAD per beneficiary, per institution, per deposit category. At Wealthsimple, we instead hold any balance in your Cash or Save account(s) in trust for you (which is a fancy way of saying, on your behalf) with members of the CDIC.

Increased coverage in your Cash accounts

We have partnered with a number of CDIC-member, Canadian Financial Institutions to take advantage of a combined CDIC-eligible coverage amount (up to $500,000 CAD) for our clients across all of their Cash accounts.

This means that we hold our clients’ Cash account balances over $100,000 CAD in trust with multiple members of the CDIC, allowing the extension of coverage to funds in your cash accounts for up to $500,000 CAD, against failure of any of Wealthsimple’s partner banks.

Frequently asked questions

My bank only insures my accounts up to $100,000, how are you able to offer $500,000 coverage?

We partner with tier 1, CDIC-member, regulated Canadian financial institutions to take advantage of a combined CDIC eligible coverage amount (up to $500,000). Instead of holding your funds in trust at one partner institution, we spread funds across multiple institutions to increase your coverage.

Note: Wealthsimple Save accounts have $100,000 coverage, not $500,000.

Since Wealthsimple isn’t a bank, how are you insuring me?

As a client of Wealthsimple, you are entitled to insurance coverage so that your money stays your money. Although Wealthsimple is not a bank, we are partnering with a number of tier 1, CDIC-member, regulated Canadian regulated financial institutions to take advantage of a combined CDIC-eligible coverage amount (up to $500,000) which can be enjoyed by Wealthsimple Cash clients. Wealthsimple Cash deposits over $100,000 are held in trust with these Canadian banks resulting in increased coverage on eligible deposits.

You mentioned protection for "up to $500,000", what if I have less than this? Is it covered?

Yes. We partner with tier 1, CDIC-member, regulated Canadian financial institutions, meaning your funds are eligible for coverage of up to $500,000, which is 5x the eligible coverage of a traditional checking account.

Which partner banks are you using?

We partner with tier 1, CDIC-member, regulated Canadian financial institutions. Due to contractural reasons, we cannot disclose the names of the partners we use.

What if my Cash balance exceeds $500,000?

Any amounts over your CDIC coverage are not eligible for additional coverage. Should your balance across all of your Cash accounts balance exceed your CDIC coverage, we recommend that you speak to one of our Portfolio Managers. Our Portfolio Managers are on hand to offer free financial advice at any stage and they are best positioned to advise on alternative options for your excess cash.

Why isn't Wealthsimple listed on the CDIC website?

Wealthsimple isn't a CDIC member institution, however, we partner with CDIC members to hold your cash balance in trust, ensuring coverage is passed onto you.

How are my funds split between the partner banks that you are using?

The funds are split to maximize your eligible CDIC coverage.

Note: We work with several tier-1, CDIC-member, regulated Canadian financial institutions to hold your deposits in trust. CDIC’s coverage limit applies separately to each deposit category at each member institution, so even if you bank with our bank partners, you’ll have CDIC coverage in both places. We provide our banking partners with the relevant reporting information concerning beneficiaries in line with our CDIC reporting obligations. Beneficiary information is based on account holder information so please make sure your information is up to date. You can learn more about how CDIC coverage works on their website.

What about the cash I have in other Wealthsimple accounts?

The total balance of your Wealthsimple Cash accounts (including joint Cash accounts) is covered up to $500,000. You can learn more about the insurance available to you for your other Wealthsimple accounts by checking out this article.

Will this impact deposit or withdrawal timelines?

Deposit and withdrawal timelines will not be impacted by this initiative. Instead, you can enjoy the same deposit or withdrawal timelines with the increased security of CDIC-eligible coverage of up to $500,000 on your Wealthsimple Cash accounts.

What happens if Wealthsimple goes out of business?

In the improbable event that Wealthsimple goes out of business, client funds are to be recovered in accordance with Canadian bankruptcy laws and proceedings.

How it works

General coverage with Wealthsimple Cash and Save accounts

Increased coverage in your Cash accounts

Frequently asked questions

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