Our brokerage, Canadian ShareOwner Investments Inc. (ShareOwner) is a member of the Canadian Investor Protection Fund (CIPF). With Wealthsimple Save, your deposits are held in trust in a ShareOwner business account with our partners — Scotiabank and National Bank.
Since ShareOwner is a CIPF member, your accounts (including Wealthsimple Save) are protected up to $1 million in case of insolvency or bankruptcy. You can read more about CIPF here.
What about Canada Deposit Insurance Corporation (CDIC) insurance?
Good question. Your Wealthsimple Save account is not CDIC insured.
What's the difference between CIPF protection and CDIC insurance?
Since ShareOwner is regulated by IIROC and is a member of the CIPF, your deposits are insured in the unlikely event that Wealthsimple goes out of business.
CDIC, on the other hand, is a crown corporation that protects against bank default (e.g. Scotiabank or National Bank).
To put it simply, CIPF provides protection if Wealthsimple or ShareOwner go out of business. And CDIC provides protection if the bank goes out of business. And while it's very unlikely that Wealthsimple will go out of business, it's extremely unlikely that one of the major banks will default.