however, your eligible deposits are held in trust with Banks that are participating CDIC member institutions and you have been designated as a beneficiary. As such, if the institution fails, your funds are eligible for CDIC deposit protection up to $100,000 when CDIC trust disclosure requirements are met. It is our responsibility to meet these disclosure requirements for your automatic protection. See cdic.ca/depositors/whats-covered/fintechs/. CDIC limits apply per beneficiary and are subject to CDIC rules, which may aggregate deposits held at the same member institution. For clarity, Funds are eligible deposits for these purposes only once actually held in trust at a participating Bank. Funds are not eligible for CDIC deposit insurance while they remain in your Wise Account pending sweep into an Account.

I'm not too paranoid of extreme on extreme scenarios. I want to help encourage change in Canadian Banking landscape. Their interest rate is impressive compared to what CU and most others have offered.

BarterBrad said
I get all the skeptism. Has anyone figured out how Wise IS offering CDIC protection? Has someone investigated the fine print?

speedwagen said
"Because fintechs are not members, we do not protect your funds held by a fintech unless they place them as eligible deposits with a CDIC member institution. Even then, they must be in an account in your name or in a trust account where you are named as beneficiary. Only then are those funds eligible for CDIC protection against the failure of the member institution that holds your funds."

I'm lost, where is this reference from? I don't know the context.

That is from CDIC: Fintechs.

Wise is not offering CDIC insurance. Wise is offering CDIC insurance against any failure of CDIC members that they have accounts at to hold funds clients upload to their Wise chequing account.

The fine print at the bottom of Meet Wise Interest has more details:

Wise is not a Bank. Wise Canada is registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a Money Service Business (MSB Registration No. M15193392) and is registered with the Bank of Canada as a Payment Service Provider under the Retail Payments Activities Act. Registration is not an approval, endorsement, or guarantee of Wise Canada's products or services.

Your Funds are held in a segregated account in accordance with the requirements of the Retail Payment Activity Act. This means your funds are kept separate from Wise Canada's own operating funds. Safeguarding is not equivalent to deposit insurance.

The legal agreement is at Program Agreement. The chequing account would be at and the balance is owed by Wise Payments Canada Inc., not at/by a CDIC member.

BarterBrad said
More importantly, my post was to add their chequing account rate to the HISA chart. How does one separated the CDIC discussion from my simple request to add Wise to the HISA chart?  

Well, maybe a green ✅ checkmark could be noted for financial institutions that have their own CDIC coverage so as to make it clear to those that have concerns.

speedwagen said
"Because fintechs are not members, we do not protect your funds held by a fintech unless they place them as eligible deposits with a CDIC member institution. Even then, they must be in an account in your name or in a trust account where you are named as beneficiary. Only then are those funds eligible for CDIC protection against the failure of the member institution that holds your funds."

I'm lost, where is this reference from? I don't know the context.

Victims and bankruptcy trustee agree over the balances of their rebranded Synpase client accounts. Problem is the balances of Synpase's FDIC-insured bank accounts, that are supposed to hold funds from Synapse clients and back those client accounts, don't add up to the balances of those client accounts.

They are not sure if it was fraud or sloppy bookkeeping. Synpase could have used client funds to pay its own business expenses in error. Unfortunately, not enough money left in the bankrupt company to pay for a forensic reconstruction of the ledgers to determine where the missing funds went.

speedwagen said
… Only then are those funds eligible for CDIC protection against the failure of the member institution that holds your funds."

That matches the response from CDIC when I asked them about such fintech arrangements.

CDIC deposit insurance only covers failure of a CDIC member and not failures of any non-member.

What happens when a non-CDIC member fails? CDIC doesn't get involved; a CDIC member didn't fail.

What happens when a non-CDIC member fintech fails and the fintech's CDIC-insured trust accounts come up short of the balances in the savings accounts offered by the fintech? Will CDIC make up the difference? That is a matter between the fintech's savings account holders and the fintech's bankruptcy trustee. When a CDIC member didn't fail, CDIC doesn't get involved.

Wise is a fintech not a bank, therefore, any deposits won't be directly CDIC insured. "Because fintechs are not members, we do not protect your funds held by a fintech unless they place them as eligible deposits with a CDIC member institution. Even then, they must be in an account in your name or in a trust account where you are named as beneficiary. Only then are those funds eligible for CDIC protection against the failure of the member institution that holds your funds."

A similar set-up in the US imploded a few mo's back where the fintech fraudulently didn't deposit with a FDIC-insured FI as they said they would, just like Wise has stated & there's no way to verify that they have. Wise up...pun intended!

With a very impressive USD account interest rate: 3.14%. Plus a EUR and GBT...but I'm getting off the topic of this post.

Let's add them to the HISA Chart! Here's to hoping it'll help move change in Canada.

There's not enough FIs involved (yet) to justify a separate column for that.

How it's handled now, works just fine ... IMHO

My Two Nickes,

Dean

Alexandra said
Peter, remember to put the New Hubert 18 Month GIC @ 3.9%
Thanks  

A combined 15/18Mo column might be a nice addition to the actual table ...

The option to change Subscribe Flag is at the bottom of over topic tread.