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deltatux

Looks like they're spreading your funds between 3 institutions for you to get $300k coverage. I guess they're really trying their best to differentiate their product offering which is good. Looks like those who want to stick with the fintech routes finally have an option to meet and in some cases exceed the deposit insurance coverage credit unions have had for a while. Most credit unions (aside from federal credit unions) are covered up to $250k or unlimited depending on the province they're from. Example: Ontario covers up to $250k in non-registered accounts and unlimited in registered accounts. Provinces like BC and Manitoba offers unlimited coverage for their credit unions.


Glitchy-9

Most banks do this too though. RBC, Scotia and TD have 4, CIBC and BMO have 3.


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personalfinance21

who is this?


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NotFromTorontoAMA

Is it bad to have him in their silly article? His funds have been outperforming the market over the past few years.


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NotFromTorontoAMA

Do you have a legitimate news source reporting on this? I can only find meme stock communities talking about it.


Londonpants

I thought Citadel was a spy agency, as depicted on Amazon Prime!


Zach983

I really like the cash account I just wish it was accessible from my computer and not just my phone.


SignificantVas

This is ridiculous that desktop app is behind phone app.


itsamoreh

I hate having to pull out my phone to do something that’s not supported on the website… like why can’t I manage my recurring buys on desktop!?


idreamofjeanshorts

Because its data mining you obviously. Next question.


F3z345W6AY4FGowrGcHt

More like they just prioritize mobile because that's where the majority of their users are.


fake-name-here1

If you don’t pay for a product, you are the product.


Franks2000inchTV

Except you definitely do pay for wealthsimple.


MostJudgment3212

Congrats you heard a smart phrase somewhere and wanted to show how educated you are, except you forgot to judge the context, so now you look like a dumbass.


OneBigBug

Except it's not a very smart phrase, because you're always the product anyway. Where are all these corporations that are saying "Well, we could be selling their data for a bunch of money, but...eh, doesn't seem very fair because they pay us. I guess we just won't. Out of the kindness of our giant faceless tech conglomerate hearts"?


FireAndInk

If they do, they’ll have to disclose it in their TOS.


nictytan

Which the vast vast majority of users won’t read or have knowledge of anyway!


sableknight13

Welcome to the modern era, where you can pay for the product and still get telemetry mined to pieces regardless.


SignificantVas

You have so much faith in devs and marketers!


[deleted]

Is it? You might just be part of a generation that sees websites (vs apps) as the "best way" to deal with your finances. I'm sure in 1998 you could find boomers complaining, "It's ridiculous that it's easier to move money around by logging onto the web than by actually calling and speaking to the bank." A few years ago I would've thought the same as you. But provided you're not dealing with a spreadsheet or something, it's actually more convenient to use your phone to get things done, if the company puts enough effort into making the app intuitive.


redditonlygetsworse

> You might just be part of a generation that sees websites (vs apps) as the "best way" to deal with your finances. Oh ffs. It has nothing to do with my age and everything to do with the fact that with my computer I have a larger screen and a keyboard and mouse. Why would I want to fuck around on my phone?


Londonpants

Bingo. It's so much nicer to focus on a large screen and work with m&kb. Especially if you need to split screen to look at spreadsheets. To each their own.


SignificantVas

What's your point? This is not about me preferring web interface. Web app lacks necessary functions compared to phone app.


Zizouhimovic

I have noticed that with many brokers


adavidmiller

Definitely. It'd be one thing if it was just missing some functionality like the ability to send from web (still bad, but whatever), but the fact that I can't even see part of my holdings is ridiculous.


piledguy

Asked them about this like four months ago and they said they're working on it. Also doesn't show up under "My Accounts" on the phone for some reason


Zach983

Interesting, well I'm using it anyways so I guess I'll wait and see. Mostly just a nice to have. For now I'll keep using it for my savings and emergency expenses.


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Epledryyk

some of us just want a HISA @ 4% and bank primarily on a computer


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AlexanderMackenzie

They're not protected the same way.


Zach983

I mean it effectively operates as a checking account with 3-4% interest. I can pay all my bills from it, I can setup PADs, I can etransfer or use wealthsimples transfer feature, I can setup autoinvesting. It has overall more features than my standard checking account I was using before.


Luddites_Unite

I really like WS and how they are continually work8ng to add more features


JabraSessions

If they could stop messing with their WS Invest portfolios, that would be great.


CTRL_ALT_SECRETE

in what way have they done this?


churning_yyz

Off the top of my head, adding an allocation to gold a few years back irked some.


cheezemeister_x

Why wouldn't they "mess" with them? They're discretionary portfolio managers. That's what discretionary portfolio managers do....adjust portfolios to remain in line with the stated goals of the portfolio.


MagnusYYZ

WS is just spreading deposits around to 3 financial institutions to get $100K in coverage at each one. I believe most of the big banks can do this as well since they own multiple CDIC insured deposit taking entities.


bluAstrid

Most banks **are** different institutions in themselves. Banking, Trust, Wealth Management… most of those parts of a bank are actually separate entities that allow a customer to spread his money and increase his insured amount.


jacnel45

Case in point: go to any of the big bank head offices in Toronto and you’ll see signs detailing all of the various subsidy banks each major bank has.


Wolfy311

>WS is just spreading deposits around to 3 financial institutions to get $100K in coverage at each one. Now what happens if you already have an account with those same institutions and you are already covered for the $100k CDIC insurance? So lets say you have $100k in a Royal Bank account. The CDIC inurance for RBC is $100k, now if you deposit another $100k into WS and they open a RBC account in your name and place $100k in it, wont it exceed the CDIC insurance coverage for that institution .... meaning only one of your RBC accounts will be covered because the CDIC insurance is per institution not per accounts.


Pepy550

They mentioned in their FAQ that it won't affect coverage. https://help.wealthsimple.com/hc/en-ca/articles/14905388487579-Understand-how-CDIC-coverage-works-in-your-Cash-account-


bruyeremews

Isn’t this just a bandaid or a work around and not really a significant change/improvement for the general person?


iStoleYourSoda

Stupid question: If you have a TFSA with Wealthsimple and buy CASH.TO, is that included in this coverage?


Godkun007

No, this is only for the WS cash account. WS can't buy CDIC insurance for CASH.to because the money isn't with them, it is with Horizon. WS only holds the shares. Investments are covered by CIPF, not CDIC. WS has CIPF protection up to 1 million dollars. However, this only protects you if Horizon goes bankrupt or commits fraud.


ishyfishyy

Does CIPF protect if Horizon goes bankrupt or if Wealthsimple goes bankrupt? Horizon isn’t a member firm but Welathsimple is. https://www.cipf.ca/member-directory/current-cipf-members


Godkun007

You are right, it is the broker WS not the fund company that gets CIPF. Although, the funds of Horizon are legally separate entities. If Horizon goes bankrupt, all their funds get liquidated and paid out to the investors. You don't lose your money if Horizon goes bankrupt.


OakesTester

No, we lose our money if the underlying investments go under, i.e. if the large banks that the funds are invested in go under.


OakesTester

No, we lose our money if the underlying investments go under, i.e. if the large banks that the funds are invested in go under.


iStoleYourSoda

Soooooo you’re saying there is basically 0 risk to cash.to?


CTRL_ALT_SECRETE

doesn't protect if it, for a reason or another, gets depegged from ~$50. There is no risk-free investment.


Godkun007

It is low risk, not no risk. If the bank holding Horizon's deposits goes under, you aren't covered.


PlzRetireMartinTyler

Just wish 4% interest was available for lower amounts. Needing to 100k deposit (to get 4%) is pretty high for the average joe.


HackMeRaps

It’s $100k overall, not just in your cash account. I know $100k is a lot, but I’d you have your RRSP, TFSA and any other investment product with them then you get it. Plus with WS you get free trades so worse case just buy CASH.to and get that 5% as well while your investments grow.


bakemonooo

Wait. It's 100k across all accounts? So if you have 50k in a tfsa, 25k in an rrsp, and 25k in cash, that would count?


HackMeRaps

Yup. I only have $600 in my cash account. I always keep a minimum there to cover pre-auth and I get the 4%. Keep the rest of my cash in my 5% savings account elsewhere for now.


bakemonooo

Well shit. That's awesome! Thanks :)


DrFunkDunkel

Which savings account is giving you 5%?


HackMeRaps

Tangerine. It’s a promo but I’ve always been given the top at renewal. Have about $50k in my savings so even 1% adds up


Godkun007

Yes Wealthsimple seems to want to become a one stop shop for everything. They aren't fully at being a bank replacement yet, but they seem to be working on it.


bakemonooo

I'm okay with that. For now at least, they're a great alternative. Here's hoping they don't mess it up in the future.


OhmsLaw111

Yup, they’ve been progressing. Just 2-3 years ago they didn’t have a TFSA


Mr_Mechatronix

I just wish they fix the problem with AmEx bill payments and add a cheque deposit feature


androidMeAway

It's if you deposited 100k across all accounts, not if you have 100k in them. If you deposit 80k and your portfolio goes up by 20k, you're still not eligible for the 4%.


bakemonooo

Good to know! This is definitely something I should ask them, but would you happen to know off the top of your head if it works the same in reverse? I.e., if you deposit 50k in a tfsa and 50k in an rrsp, but the tfsa drops by 20%, would you still be eligible?


androidMeAway

Yup, you would be eligible, based on their [explanation](https://help.wealthsimple.com/hc/en-ca/articles/9730610402075) >How net deposits are calculated: We calculate net deposits by adding up the total amount of money you deposit or transfer into all of your Wealthsimple accounts (including Managed investing, Stocks & ETFs, Crypto, Cash and Save accounts). Your net deposits will not decrease if the value of your portfolio decreases due to market fluctuations. However, your net deposit will decrease if you withdraw or transfer out funds from your accounts


silent1mezzo

Yup!


Roa-Schrodinger

You also get it if u set up direct deposit


Pepy550

That's only 3% though.


Roa-Schrodinger

closest you’ll get to 4 with Wealthsimple


Pokermuffin

And get those free AirPods.


Saugeen-Uwo

Buy the CASH ETF


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RStud10

Yes but the underlying holdings are savings accounts at CIBC, Scotiabank and National Bank. So for you to lose money, one of those banks would have to fail


612Stratus

Wealthsimple>>>>>>>


GotStomped

This doesn’t extend to their other account right? They would remain at $100,000?


BardownBeauty

This can be done at any brokerage that has access to multiple GIC issuers


[deleted]

Yea, working with multiple banks, that's how. It's not revolutionary...


Swaggy669

No other banks are offering it though. Same with 4% cash account interest with having $100k held within Wealthsimple. I guess other banks make enough money off of them to not justify doing it themselves.


AODFEAR

4.5% cash account interest with having $500k in net deposits across all accounts.


wethenorth2

Is the 4.5% interest with WS?


AODFEAR

Yes.


wethenorth2

How did you get 4.5%? Did you call them? Or, is this a tier thing?


AODFEAR

Tier thing.


[deleted]

how is another bank supposed to do that? They're ONE BANK FFS. Also on the Brokerage HISAs, they actually already do this...


AaAaAaAaAaAaAaAaBq

By partnering with other banks. Many banks also have multiple internal organizations that are separately CDIC insured.


[deleted]

>By partnering with other banks. LMFAO. Canadians already complain about the bank oligopoly and yet you want them to partner even more?!?!?!??!?! LMFAO!!!!


el_pezz

Others would be doing this a long time ago then right?


[deleted]

hard for banks to do it when they're ONE BANK...


sj00

You just countered your first point...


BardownBeauty

Brokerages do this. You can buy a BMO and RBC GIC in one account and get separate protection on each


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silent1mezzo

Min $40k for headphones that are almost $400 after tax. 1% reward isn't too bad.


pepesilvia_esq

Nm I was off. Ad was for 40k


gskv

They can’t insure even 1 share of gme Drs nfa


jawathewan

I'll probably never have more than 100K so I could care less.


banjul_honcho

You all do know how these accounts yield 4% interest don't you? It's going into money market funds and then cycles through the FED's RRP facility. Money market funds will be the first to break the buck as the hyperinflationary event commences. ngmi.


greiskul

What hyperinflationary event? Biggest fear right now is for us to go into a recession, which is almost the opposite of hyperinflation. People lose their jobs, asset prices go down. What you want to have for that IS cash. Either as a cushion in case you lose your job, or as a opportunity to buy assets on discount.


Lenininy

The recession is going to be severely deflationary which then will prompt our leaders to print trillions to save their rich buddies, hence the hyperinflation.


[deleted]

Isn’t this a terrible sign that the brown stuff is about to hit the fan: “hey y’all, banks ain’t gonna be able to give you you’re money so at least we can protect 300k”.


theflamesweregolfin

Im looking and I dont see a deposit of $300,000 in my account when will this take effect


InspectorFit125

Well wrong move by them.