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"High Interest" rates at discount brokers
July 12, 2020
8:15 am
Doug
British Columbia, Canada
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Forum Posts: 3743
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December 12, 2009
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Bill said
I have various investment accounts at CIBC, RBC & TD discount brokerage entities. I've got increasing amounts just sitting in the accounts in cash, I've no interest in any investments or savings vehicles at the moment, so I just let it sit there earning zero.

Anyone know if I've CDIC coverage for these amounts? CDIC site does not list, for example, CIBC Investor's Edge.

(Sorry for reviving this old thread but it's never been obvious on this site how to start new threads, at least to me, something I only do infrequently anyway.)  

Hi Bill,

I'm sure Norman's linked answer is thorough, well researched, and accurate, but thought I'd provide a brief response to your question, in case other users reading this thread now or later want the answer in this thread.

Yes, CDIC insurance is definitely included on brokered deposits, whether held in your own name through a deposit broker or in nominee "street" name through a discount brokerage. CIBC's Investor's Edge is just a trade name of CIBC World Markets Inc. (believe that's the current subsidiary) and their registered accounts are custodied by CIBC Trust Company, but remember, though CIBC Trust Company is a CDIC issuer, it's not how your brokered deposits are insured. Insurance is of the deposit issuer in your brokerage account. It is per issuer and per beneficial owner and per deposit category.

Thus, assuming your name is Bill Smith and you held a TFSA in your own name, a RRIF in your own name, and a non-registered joint account with your wife, you have separate CDIC insurance for each CDIC issuer in each of your three brokerage accounts. Adding one co-owner to a new joint account (i.e., with your wife and one son) creates a separate beneficial owner.

Hope that clarifies,
Doug

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