Previously, Wealthsimple Trade used to label their non-registered accounts as Personal accounts. Renaming it as Non-Registered should provide more clarity to minimize confusion among new users in the platform, since the term aligns with the general industry lingo.
Wealthsimple On Desktop
Here is how the new label for the account shows up in Wealthsimple on Desktop:
Wealthsimple On Mobile
What is a non-registered account?
To put it simply, a non-registered account is an investment account, where earnings made within it are usually taxable and should be reported in your annual tax returns.
How is a non-registered account different from a registered account?
Investments owned inside registered accounts usually offer some kind of tax benefits. The most common examples of registered accounts are:
- TFSA (Tax-Free Savings Account), where earnings made inside the account are generally tax-free.
- RRSP (Registered Retirement Savings Plan), where earnings made inside the account are taxable, but only when they are withdrawn (though subject to other conditions as well).
Even though there are tax benefits associated with registered accounts, there are also rules you'd have to follow, such as how much you can contribute to them each year.
In registered accounts, contributing beyond the limits you are supposed to will subject you to a penalty. This is unlike non-registered accounts, which are generally very flexible and you can deposit into or withdraw from them as you wish.
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