Wealthsimple: Wealthsimple to let users insure up to $300,000 as global bank failures prompt better depositor protection

Wealthsimple is set to offer its users three times more deposit insurance coverage than the standard set by the Canada Deposit Insurance Corporation (CDIC), which guarantees all Canadian bank deposits up to $100,000. Calling it an industry first, Wealthsimple said its clients with cash accounts are now eligible for up to $300,000 in CDIC coverage. Depositors were looking to withdraw as much as $42 billion from SVB at the time of the bank run. A series of bank failures have followed since then, prompting the FDIC to look into increasing its deposit insurance limit for business payment accounts. There have also been calls from Canadian advocacy groups to raise deposit insurance limits.