Quote:
Originally Posted by Manhattanboy
Hi question - so term deposits and CDs in Canadian banks are insured by CDIC to a maximum of $100,000 per account.
What about Canada treasury bills held in a bank-owned brokerage account?
If say TD (and its brokerage arm) was to go down, given that t-bills are debt obligations of the Government of Canada, I am assuming they are protected for full value?
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Yeah, there are a few layers of protection. Much like with stocks, you own the asset and they're just the custodian. So if the brokerage becomes insolvent, you still own the bond/T-bill regardless of the value. It's possible that if there was significant fraud/irregularities that there might be an issue, but that is pretty unlikely, as customers' securities are normally segregated from the rest of a brokerage's assets.
And in the very unlikely event that there is a loss due to fraud or whatever, there is also the Canadian Investor Protection Fund which covers your losses up to $1M in cash/TFSA accounts and $1M in RRSP accounts.