CDIC Insurance for Joint Deposits – How it is Calculated?

CDIC (Canadian Deposit Insurance Corporation) insures eligible deposits at each CDIC member institution up to a maximum of $100,000 (principal and interest combined) per depositor (or, in the case of joint deposits, per set of joint owners), in each of the following:

  1. Savings held in one name
  2. Joint deposits (savings held in more than one name)
  3. Savings held in trust for another person
  4. Savings held in Registered Retirement Savings Plans (RRSPs)
  5. Savings held in Registered Retirement Income Funds (RRIFs)
  6. Savings held in Tax-Free Savings Accounts (TFSAs)
  7. Money held for paying realty taxes on mortgaged property

To be eligible for deposit insurance, deposits must be payable in Canada and in Canadian currency. As a general rule, a deposit is considered to be payable in Canada if it is held at a branch or office of a CDIC member institution in Canada.

Eligible deposits include savings accounts, chequing accounts, GICs or other term deposits with an original term to maturity of 5 years or less, money orders, certified cheques, and bank drafts issued by CDIC members.

As stated above, eligible joint deposits are insured separately from deposits in each person’s own name alone at the same member institution, up to a maximum of $100,000 (principal and interest combined). However, this deposit insurance is payable per set of joint depositors; that is, the joint owners together receive a single deposit insurance payment of up to $100,000.

To be eligible for separate CDIC insurance coverage, the following information about a joint deposit has to appear on the records of the member institution:

  • a statement that the deposits are owned jointly; and
  • the name and address of each of the joint owners.

It is important to note that each person identified as a joint owner must have a genuine ownership interest in the deposit for separate deposit insurance protection to apply. The creation of artificial joint deposits for the sole purpose of obtaining additional deposit insurance protection is contrary to the intent of the CDIC Act.

Source: CDIC Website

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