CDIC Insurance | Banks Canada

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:

Savings held in one name
Joint deposits (savings held in more than one name)
Savings held in trust for another person
Savings held in Registered Retirement Savings Plans (RRSPs)
Savings held in Registered Retirement Income Funds (RRIFs)
Savings held in Tax-Free Savings Accounts (TFSAs)
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

The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation created in 1967 to protect the money you deposit in member financial institutions in case of their failure.

CDIC’s members are banks, trust companies, loan companies and cooperative credit associations that take deposits. The complete list of members can be found out at the CDIC website.

WHAT DOES CDIC INSURE?

CDIC insures eligible deposits you make with our members. Insurable deposits include: savings accounts and chequing accounts;
term deposits, such as guaranteed investment certificates (GICs) and debentures issued by loan companies;
money orders, travellers’ cheques and bank drafts issued by CDIC members and cheques certified by CDIC members; and
accounts that hold funds to pay realty taxes on mortgaged properties.

To be eligible for deposit insurance protection, your deposit must be payable in Canada, in Canadian currency. Term deposits must be repayable no later than five years after the date of deposit.

Please note that Not all deposits and investments offered by our members are insurable. For example, CDIC does not insure:

foreign currency deposits (e.g., accounts in U.S. dollars);
term deposits with a maturity date of more than five years from the date of deposit;
debentures issued by banks, trust companies or cooperative credit associations;
bonds or debentures issued by governments and corporations;
Treasury bills; and
investments in mortgages, stocks or mutual funds.

WHAT IS THE MAXIMUM INSURANCE PROTECTION?

Basic Protection
The maximum basic protection for eligible deposits is $100,000 (principal and interest combined) per depositor in each CDIC member institution. Deposits are not insured separately if made at different branch offices of a member.

Separate Protection
CDIC insures eligible deposits separately in each of the following cases:

savings held in one name;
savings held in more than one name (joint deposits);
savings held in trust for another person;
savings held in registered retirement savings plans (RRSPs);
savings held in registered retirement income funds (RRIFs);
savings held in tax-free savings accounts (TFSAs); and
savings held for paying realty taxes on mortgaged properties.

You are responsible for ensuring that the member institution’s records include all information required for the separate protection of these deposits (see following sections for details).

Joint Deposits
Deposits you own jointly with someone else are insured separately from deposits in your own name, provided that the records of the member institution:

indicate the deposits are owned jointly; and
include the name and address of each joint owner.

The maximum insurance for all deposits having the same joint owners at each member institution is $100,000 (collectively, not per individual owner).

Trust Deposits
Deposits held in trust are insured separately from deposits owned personally by the trustee or the beneficiary(ies) provided that the records of the member institution:

state that the deposit is held in trust;
identify the name and address of the trustee(s); and
identify the name(s) and address(es) of the beneficiary(ies).

If a trust deposit is held for more than one beneficiary, the dollar amount or percentage owned by each beneficiary must be identified on the CDIC member’s records each year as of April 30. Each beneficiary’s share then is insured up to $100,000.

For more information on CDIC, please visit CDIC’s Website.