The answers provided here are subject to a
disclaimer.
Frequently Asked Questions
Table of Contents
Who is CDIC:
Deposit insurance coverage:
What CDIC Does
CDIC insures Canadians’ savings against the failure of a bank or other CDIC member institution.
We ensure most savings Canadians have on deposit with a CDIC member are protected in case a member bank,
trust company, loan company or association governed by the Cooperative Credit Associations Act goes
bankrupt.
Return to top
CDIC’s Structure and Reporting
CDIC is one of five federal government organizations that, together, form Canada’s “financial safety net”.
The federal financial safety net agencies are: the Department of Finance, the Office of the Superintendent of
Financial Institutions, the Bank of Canada, the Financial Consumer Agency of Canada, and CDIC.
The Minister of Finance in Canada is responsible for public policy related to federal financial matters.
The Minister is responsible for those policies that govern federal financial institutions as well as for
fiscal policy for the country as a whole. This includes responsibility for the legislation with respect to
deposit-taking institutions, including the CDIC Act, the Bank Act, the Trust and Loan Companies Act, the
Insurance Companies Act, the Office of the Superintendent of Financial Institutions Act, the Canadian
Payments Act, the Bank of Canada Act, and the Cooperative Credit Associations Act.
The Office of the Superintendent of Financial Institutions (OSFI) is responsible for supervising banks and
all federally chartered insurance companies, trust and loan companies, cooperative credit associations and
pension funds to ensure that they are in sound financial condition and in compliance with the laws that
govern federally regulated financial institutions.
CDIC works closely with OSFI. Although CDIC and OSFI share common interests in the safety and soundness of
CDIC member institutions, the two organizations carry out separate mandates. CDIC insures deposits and
specifies the terms on which insurance is made available; it does not insure institutions, nor is it a
regulator of deposit-taking institutions. This latter responsibility lies with OSFI.
Return to top
How CDIC Is Run
CDIC is a federal Crown corporation created by Parliament. CDIC reports to Parliament through the federal
Minister of Finance. CDIC works at arm’s length from the government. It was created to insure deposits held
in CDIC member banks, trust companies, loan companies and associations governed by the Cooperative Credit
Associations Act. Its work is governed by the CDIC Act.
CDIC is governed by an 11-person Board of Directors made up of the Chairperson, five Directors from the
private sector who bring a wealth of practical experience, and five public sector Directors who provide
comprehensive knowledge of the financial, supervisory and regulatory environment. The public sector Directors
include the Governor of the Bank of Canada, the Deputy Minister of Finance, the Superintendent of Financial
Institutions, a Deputy Superintendent of Financial Institutions or an officer of OSFI, and the Commissioner
of the Financial Consumer Agency of Canada.
Return to top
Who CDIC Works For
CDIC’s work is all done for the benefit of the Canadian public. When CDIC was created in 1967, it only
insured savings held in one name up to $20,000. Now, many types of savings are covered by CDIC against the
failure of a bank or other member institution. Also, CDIC now insures up to $100,000 in eligible savings.
Return to top
Who is a member?
Most Canadian chartered banks are CDIC members. So are federally-regulated trust and loan companies that
take deposits, as well as associations governed by the Cooperative Credit Associations Act that take
deposits. Click here to view the full list of Member
Institutions.
Return to top
Who is NOT a member?
Some financial institutions that take deposits are NOT members of CDIC—for example, credit unions, caisses
populaires, Canadian branches of foreign banks and some Canadian chartered banks.
Return to top
Who Pays For CDIC Insurance?
Deposit insurance is different from many types of insurance. Canadians do not pay premiums. CDIC member
institutions pay premiums to CDIC to cover the cost of insuring Canadians’ deposits. In the event of a
failure, CDIC pays depositors the amount of their insured savings—up to $100,000 in eligible savings held at
each member institution.
Return to top
How does CDIC coverage
work?
CDIC 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), for 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), and
- 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, and debentures issued by loan companies that are CDIC members.
Return to top
Is the coverage per person or per account? Is it per bank or per branch? What about a bank’s
subsidiary?
CDIC 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), for 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), and
- 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, and debentures issued by loan companies that are CDIC members.
Therefore, the coverage is not per account.
The $100,000 limit applies to each member institution. Deposits held in the same person’s name at multiple
branches of the same member institution would be combined together.
Some CDIC member institutions have subsidiaries that are CDIC members in their own right. Therefore, as
these subsidiaries are CDIC members in their own right, deposit insurance coverage applies to them separately
from their parent member.
Return to top
Is interest on a savings account or term deposit included in the
coverage? How is the interest calculated in the event of a failure?
CDIC insures eligible deposits at each CDIC member institution up to a maximum of $100,000 (principal and
interest combined).
Accrued interest (monthly or annually), will be calculated on eligible deposits up to the date of the
deposit insurance payment or the date on which a court application is filed to wind up the failed
institution, whichever comes first, and will be included in the deposit insurance payment, subject to
coverage limits.
Return to top
How does CDIC calculate insurance for joint
deposits?
CDIC 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), and
- 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, and debentures issued by loan companies that are 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.
Return to top
How does CDIC calculate insurance for deposits held in
trust?
CDIC 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), and
- 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, and debentures issued by loan companies that are CDIC members.
CDIC insures eligible deposits held in trust for another person or persons separately from other deposits
held by the trustee or by a beneficiary in their own name at the same CDIC member institution. However for
this protection to apply to trust deposits, certain criteria must be met:
- there must be a legal trust as determined by trust law in the province where the trust is
established;
- the existence of the trust must be disclosed on the records of the CDIC member institution;
- the name and address of the trustee and the name and address of each beneficiary must be disclosed on the
records of the institution; and
- if there is more than one beneficiary of the trust, the portion belonging to each beneficiary as of April
30 (expressed as a dollar amount or as a percentage) must be disclosed on the records of the institution by
May 30 of each year.
If the criteria outlined above are met and the types of deposits held in trust are eligible for deposit
insurance, each beneficiary's portion of the trust deposits is insurable up to a maximum of $100,000
(principal and interest combined). All eligible deposits in trust at the same CDIC member institution that
have the same trustee and the same beneficiary or beneficiaries are combined, and the total is insurable only
to a maximum of $100,000, if there is one beneficiary, or to a maximum of $100,000 times the number of
beneficiaries, if there are two or more beneficiaries of the trust.
You may consult the Canada Deposit Insurance Corporation Act and the CDIC Joint and Trust Account
Disclosure By-law on our web site: www.cdic.ca.
Return to top
How does CDIC calculate insurance for depositors residing outside
Canada?
CDIC 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), for 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), and
- 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, and debentures issued by loan companies that are CDIC members.
The place of residence of a depositor does not affect the eligibility of his or her deposits for CDIC
coverage. Provided that the deposits meet the eligibility criteria described above, a non-resident of Canada
receives the same insurance coverage as a depositor residing in Canada.
Return to top
How does CDIC calculate insurance for deposits purchased
through brokers?
CDIC 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), for 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), and
- 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, and debentures issued by loan companies that are CDIC members.
Some CDIC member institutions retain the services of agents, financial consultants or deposit brokers to
sell deposit instruments on their behalf. CDIC’s deposit insurance coverage applies to eligible deposits held
by CDIC member institutions, including GICs issued by member institutions, even though they may be purchased
through an agent, consultant or broker.
However, it is important to note that agents, financial consultants and deposit brokers are not eligible
to be members of CDIC. CDIC’s deposit insurance protection only becomes effective as of the date the
funds are received by the member institution.
Some deposit brokers may also benefit from the protection of the Canadian Investors Protection Fund
(CIPF). You may wish to contact CIPF at 1-866-243-6981 or visit their website at www.cipf.ca.
Return to top
Which types of deposits are insured by CDIC? Which ones are not?
CDIC 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), for 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), and
- 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, and debentures issued by loan companies that are CDIC members.
There is no CDIC coverage for foreign currency deposits.
There is no CDIC coverage for investments that are not deposits. For example, mutual
funds(including money market funds), shares or stock options are not deposits, and, therefore, are
not insured by CDIC.
Also, bankers’ acceptances and Principal Protected Notes (PPNs) are not insured by CDIC.
Return to top
How does CDIC calculate insurance for deposits held in the
name of a business?
CDIC 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), for 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), and
- 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, and debentures issued by loan companies that are CDIC members.
For the purposes of deposit insurance, a depositor may be an individual, an association of persons, a
partnership, a corporation or a government.
Eligible deposits in business accounts will be insurable separately from eligible deposits in individual
accounts, or accounts in the name(s) of the business owner(s), if the business is a partnership or an
incorporated business.
Therefore, eligible deposits in the name of a business that is a partnership or a corporation are
insurable up to the maximum of $100,000 (principal and interest combined) at each CDIC member
institution.
“Sole proprietorships” do not benefit from separate deposit protection, as they are not separate legal
entities. As a result, deposits in the individual’s name will be combined with the “sole proprietor’s”
deposits.
Return to top
How does CDIC calculate insurance for term deposits or GICs
whose maturity falls on a non-business day?
CDIC 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), for 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), and
- 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, and debentures issued by loan companies that are CDIC members.
Where a five-year GIC’s maturity falls on a non-business day, the GIC will be eligible for deposit
insurance if the agreement between the depositor and the member institution provides that the GIC is for a
five-year term, or if the GIC was advertised or otherwise offered by the member as having a five-year
term.
The GIC will not be eligible for deposit insurance if, on the other hand, the agreement between the
depositor and the member institution provided for a GIC with a term exceeding five years, or if the GIC was
advertised or otherwise offered by the member institution as having a term of more than five years.
Return to top
How does CDIC calculate insurance for Registered Retirement Savings Plans
(RRSPs)?
A6 CDIC 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), for 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), and
- 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, and debentures issues by loan companies that are CDIC members.
Eligible deposits held in a Registered Retirement Savings Plan (RRSP) are insurable separately from other
eligible deposits held at the same member institution. Eligible deposits held in a RRSP are insurable up to
$100,000 (principal and interest combined) at each CDIC member institution.
For example, suppose that Mary Smith has $100,000 in an eligible deposit such as a GIC in a RRSP at Bank X
(a CDIC member institution), and also has $100,000 in a savings account that is not in a RRSP, also at Bank
X. If Bank X were to fail, the two deposits would receive separate deposit insurance. Therefore, Mary would
receive a total of $200,000 of deposit insurance.
In addition, trusteed RRSPs are insured separately from non-trusteed RRSPs. In a trusteed RRSP deposit
situation the trustee (the trust company) is the depositor. For example, if Mary Smith has a trusteed RRSP of
which ABC trust company is the trustee, the depositor of a deposit held in that trusteed RRSP is ABC trust
company, whether the deposit is with ABC trust company or another member institution. Therefore, the deposit
held in the trusteed RRSP for Mary Smith would be insured separately from a non-trusteed RRSP deposit made by
Mary Smith at the same member institution.
The Schedule to the CDIC Act, combined with the CDIC Joint and Trust Account Disclosure By-law, require
three criteria to be met in order for eligible deposits that are held in trust for one person to qualify for
CDIC coverage that is separate from the deposit insurance on other eligible deposits made by that person at
the same member institution:
- the records of the CDIC member institution must disclose the name and address of the person who is acting
as the trustee;
- those records must disclose the fact that the eligible deposits are held by that person in trust for a
beneficiary (in this case, the RRSP account owner); and
- those records must disclose the name and address of the beneficiary of the trust (in this case, the RRSP
account owner) or contain an alphanumeric code or other identifier that is linked to a record kept by the
trustee that contains the beneficiary’s name and address.
Return to top
How does CDIC calculate insurance for Registered Retirement Income Funds
(RRIFs)?
CDIC 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), for 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), and
- 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, and debentures issues by loan companies that are CDIC members.
Eligible deposits held in a Registered Retirement Income Fund (RRIF) are insurable separately from other
eligible deposits held at the same member institution. Eligible deposits held in a RRIF are insurable up to
$100,000 (principal and interest combined) at each CDIC member institution.
For example, suppose that Mary Smith has $100,000 in an eligible deposit such as a GIC in a RRIF at Bank X
(a CDIC member institution), and also has $100,000 in a savings account that is not in a RRIF, also at Bank
X. If Bank X were to fail, the two deposits would receive separate deposit insurance. Therefore, Mary would
receive a total of $200,000 of deposit insurance.
In addition, trusteed RRIFs are insured separately from non-trusteed RRIFs. In a trusteed RRIF deposit
situation the trustee (the trust company) is the depositor. For example, if Mary Smith has a trusteed RRIF of
which ABC trust company is the trustee, the depositor of a deposit held in that trusteed RRIF is ABC trust
company, whether the deposit is with ABC trust company or another member institution. Therefore the deposit
held in the trusteed RRIF for Mary Smith would be insured separately from a non-trusteed RRIF deposit made by
Mary Smith at the same member institution.
The Schedule to the CDIC Act, combined with the CDIC Joint and Trust Account Disclosure By-law, require
three criteria to be met in order for eligible deposits that are held in trust for one person to qualify for
CDIC coverage that is separate from the deposit insurance on other eligible deposits made by that person at
the same member institution:
- the records of the CDIC member institution must disclose the name and address of the person who is acting
as the trustee;
- those records must disclose the fact that the eligible deposits are held by that person in trust for a
beneficiary (in this case, the RRIF account owner); and
- those records must disclose the name and address of the beneficiary of the trust (in this case, the RRIF
account owner) or contain an alphanumeric code or other identifier that is linked to a record kept by the
trustee that contains the beneficiary’s name and address.
Return to top
How does CDIC calculate insurance for pension money held in a registered
plan (such as a LIRA or LIF)?
CDIC 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), for 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), and
- 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, and debentures issues by loan companies that are CDIC members.
Locked-in Retirement Account (“LIRA”) is simply a name given to a type of RRSP. Therefore, the answer is
the same for a LIRA as for any other RRSP.
Life Income Fund (“LIF”) is simply a name given to a type of RRIF. Therefore, the answer is the same for a
LIF as for any other RRIF.
Return to top
How does CDIC calculate insurance for spousal
RRSPs?
CDIC 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), for 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), and
- 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, and debentures issues by loan companies that are CDIC members.
In the case of a spousal RRSP, the contributor and the owner are different people. Eligible contributions
are added to other registered deposits in the name of the spouse or common-law partner for whom the plan is
established – not with deposits in the contributor's name.
For example, suppose that Mary Smith has $100,000 in an eligible deposit such as a GIC in a spousal RRSP
at Bank X (a CDIC member institution), to which her husband contributed, $100,000 in an eligible deposit in a
non-spousal RRSP at Bank X, and also has $100,000 in a savings account that is not in a RRSP, also at Bank X.
If Bank X were to fail, the two RRSP deposits would be aggregated, and the non RRSP deposit would receive
separate deposit insurance. Therefore, Mary would receive a total of $200,000 of deposit insurance.
In addition, trusteed spousal RRSPs are insured separately from non-trusteed spousal RRSPs. In a trusteed
RRSP deposit situation the trustee (the trust company) is the depositor. For example, if Mary Smith has a
trusteed spousal RRSP of which ABC trust company is the trustee, the depositor of a deposit held in that
trusteed RRSP is ABC trust company, whether the deposit is with ABC trust company or another member
institution. Therefore, the deposit held in the trusteed RRSP for Mary Smith would be insured separately from
a non-trusteed spousal RRSP deposit belonging to Mary Smith at the same member institution.
The Schedule to the CDIC Act, combined with the CDIC Joint and Trust Account Disclosure By-law, require
three criteria to be met in order for eligible deposits that are held in trust for one person to qualify for
CDIC coverage that is separate from the deposit insurance on other eligible deposits made by that person at
the same member institution:
- the records of the CDIC member institution must disclose the name and address of the person who is acting
as the trustee;
- those records must disclose the fact that the eligible deposits are held by that person in trust for a
beneficiary (in this case, the spousal RRSP account owner); and
- those records must disclose the name and address of the beneficiary of the trust (in this case, the
spousal RRSP account owner) or contain an alphanumeric code or other identifier that is linked to a record
kept by the trustee that contains the beneficiary’s name and address.
Return to top
How does CDIC calculate insurance for Registered Education Savings Plans
(RESPs)?
CDIC deposit insurance applies to eligible deposits, not to any type of registered plan, as such. The RESP
rules allow a variety of financial products and other types of investments that are not eligible for CDIC
coverage to be held in a RESP. So, a general statement that “RESPs are CDIC protected” would be inaccurate.
However, if eligible deposits are held in a RESP those eligible deposits are covered by CDIC.
CDIC 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), for 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), and
- 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, and debentures issued by loan companies that are CDIC members.
The CDIC Act provides that eligible deposits held in a Registered Retirement Savings Plan or in a
Registered Retirement Income Fund are insured separately from other eligible deposits at the same CDIC member
institution. The Act makes no such provision for separate coverage of eligible deposits held in a RESP, as
such. However, it does provide that eligible deposits held by the trustee of a trust for another person or
persons also are insured separately from other eligible deposits at the same CDIC member institution, so long
as the trust disclosure rules outlined below have been met. Therefore, depending on whether the particular
RESP is structured as a trust (that is, it is held by a trustee in trust for the RESP account owner),
eligible deposits in it may qualify for separate coverage.
For example, suppose that Mr. A has Cdn$5,000 in a RESP for his children at Bank X (a CDIC member
institution) that is not structured as a trust and also has Cdn$100,000 in a five-year GIC at Bank X. If Bank
X were to fail, the Cdn$5,000 in the RESP would not be insured separately from the Cdn$100,000 GIC.
Therefore, Mr. A would receive Cdn$100,000 of deposit insurance on his total claim against Bank X for
Cdn$105,000.
Suppose, instead, that Ms B has a Cdn$5,000 deposit at Bank X (a CDIC member institution) held in a RESP
for her childrem that is structured as a trust, with Trust Company Y being the trustee, and also has
Cdn$100,000 in a five-year GIC at Bank X. If Bank X were to fail, the Cdn$5,000 in the RESP would be insured
separately from the Cdn$100,000 GIC, so long as the disclosure requirements outlined below are met. On that
basis, Ms B would receive Cdn$100,000 of deposit insurance on her GIC and Trust Company Y would receive
Cdn$5,000 of deposit insurance in trust for her on the deposit held in the RESP.
The Schedule to the CDIC Act, combined with the CDIC Joint and Trust Account Disclosure By-law, require
three criteria to be met in order for eligible deposits that are held in trust for one person to qualify for
CDIC coverage that is separate from the deposit insurance on other eligible deposits made by that person at
the same member institution:
- the records of the CDIC member institution must disclose the name and address of the person who is acting
as the trustee;
- those records must disclose the fact that the eligible deposits are held by that person in trust for a
beneficiary (in this case, the RESP account owner); and
- those records must disclose the name and address of the beneficiary of the trust (in this case, the RESP
account owner) or contain an alphanumeric code or other identifier that is linked to a record kept by the
trustee that contains the beneficiary’s name and address.
You may wish to contact your CDIC member institution to find out if it offers RESPs that are structured as
trusts.
Return to top
How does CDIC calculate insurance for Tax-Free Savings Accounts
(TFSAs)?
CDIC 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), for 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), and
- 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, and debentures issues by loan companies that are CDIC members.
Eligible deposits held in a TFSA are insurable separately from other eligible deposits held at the same
member institution. Eligible deposits held in a TFSA are insurable up to $100,000 (principal and interest
combined) at each CDIC member institution.
For example, suppose that Mary Smith has $10,000 in a three-year eligible deposit such as a GIC in a TFSA
at Bank X (a CDIC member institution), and $100,000 in an eligible deposit in a RRSP at Bank X, and also has
$100,000 in a savings account that is not in a TFSA or RRSP, also at Bank X. If Bank X were to fail, the
three deposits would receive separate deposit insurance. Therefore, Mary would receive a total of $210,000 of
deposit insurance.
In addition, trusteed TFSAs are insured separately from non-trusteed TFSAs. All self-directed TFSAs must
be trusteed. In a trusteed TFSA deposit situation the trustee (the trust company) is the depositor. For
example, if Mary Smith has a trusteed TFSA of which ABC trust company is the trustee, the depositor of a
deposit held in that trusteed TFSA is ABC trust company, whether the deposit is with ABC trust company or
another member institution. Therefore, the deposit held in the trusteed TFSA for Mary Smith would be insured
separately from a non-trusteed TFSA deposit made by Mary Smith at the same member institution.
The Schedule to the CDIC Act, combined with the CDIC Joint and Trust Account Disclosure By-law, require
three criteria to be met in order for eligible deposits that are held in trust for a person to qualify for
CDIC coverage that is separate from the deposit insurance on other eligible deposits made by that person at
the same member institution:
- the records of the CDIC member institution must disclose the name and address of the person who is acting
as the trustee;
- those records must disclose the fact that the eligible deposits are held by that person in trust for a
beneficiary (in this case, the TFSA account owner); and
- those records must disclose the name and address of the beneficiary of the trust (in this case, the TFSA
account owner) or contain an alphanumeric code or other identifier that is linked to a record kept by the
trustee that contains the beneficiary’s name and address.
Return to top
How does CDIC calculate insurance for Registered Disability Savings Plans
(“RDSPs”)?
CDIC 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), for 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), and
- 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, and debentures issues by loan companies that are CDIC members.
Assets held in a RDSP (which can include deposits) are required to be held in trust.
The CDIC Act provides that eligible deposits held in a Registered Retirement Savings Plan or in a
Registered Retirement Income Fund are insured separately from other eligible deposits at the same CDIC member
institution. The Act makes no such provision for separate coverage of eligible deposits held in a RDSP, as
such. However, RDSPs are required by the Income Tax Act to be structured as trusts. The CDIC Act provides
that eligible deposits held by the trustee of a trust for another person or persons also are insured
separately from other eligible deposits at the same CDIC member institution, so long as the trust disclosure
rules outlined below have been met.
Where a deposit is held in trust in a RDSP the trustee is the depositor. For example, if Mary Smith has a
RDSP of which ABC trust company is the trustee, the depositor of a deposit held in that RDSP is ABC trust
company, whether the deposit is with ABC trust company or another member institution. Therefore, an eligible
deposit held by the RDSP trustee for Mary Smith would be insured separately from any other eligible deposits
made by Mary Smith at the same member institution.
Example: Suppose that Mary Smith has a Cdn$5,000 deposit
at Bank X (a CDIC member institution) held in a RDSP that is structured as a trust, with Trust Company Y
being the trustee, and also has Cdn$100,000 in a five-year GIC at Bank X. If Bank X were to fail, the
Cdn$5,000 in the RDSP would be insured separately from the Cdn$100,000 GIC, so long as the disclosure
requirements outlined below are met. On that basis, Mary Smith would receive Cdn$100,000 of deposit insurance
on her GIC and Trust Company Y would receive Cdn$5,000 of deposit insurance in trust for her on the deposit
held in the RDSP.
The Schedule to the CDIC Act, combined with the CDIC Joint and Trust Account Disclosure By-law, require
three criteria to be met in order for eligible deposits that are held in trust for one person to qualify for
CDIC coverage that is separate from the deposit insurance on other eligible deposits made by that person at
the same member institution:
- the records of the CDIC member institution must disclose the name and address of the person who is acting
as the trustee;
- those records must disclose the fact that the eligible deposits are held by that person in trust for a
beneficiary (in this case, the RDSP account owner); and
- those records must disclose the name and address of the beneficiary of the trust (in this case, the RDSP
account owner) or contain an alphanumeric code or other identifier that is linked to a record kept by the
trustee that contains the beneficiary’s name and address.
Return to top
CDIC’s counterpart in the United States (the FDIC) has
increased its deposit insurance maximum to $250,000. Is CDIC planning the do the same?
The CDIC coverage limit was recently increased from $60,000 to $100,000. The terms and conditions of CDIC
deposit insurance are policy decisions which are determined by the Parliament of Canada.
Return to top
In the event of a failure, do I have to file
a claim? How does CDIC reimburse deposits held at the failed institution? What is the timeframe before
receiving payment?
In the event of failure, depositors do not have to file a claim. CDIC contacts insured depositors advising
them of the amount of insured deposits and of the method of payment. Depositors are reimbursed as soon as
possible, depending on the size and the circumstances.
CDIC may make payment by making the amount of insured deposits available at another member institution, or
by issuing cheques to insured depositors. Accrued interest (monthly or annually), will be calculated on
eligible deposits up to the date of the deposit insurance payment or the date on which a court application is
filed to wind up the failed institution, whichever comes first, and will be included in the deposit insurance
payment, subject to coverage limits.
Return to top
Which financial institutions are members of
CDIC? Are credit unions or caisses populaires members of CDIC?
CDIC is a federal Crown corporation created in 1967 to insure eligible deposits at member financial
institutions in case of their failure. CDIC’s members are banks, trust companies and loan companies and
cooperative credit associations that have CDIC membership.
Credit unions and caisses populaires are not members of CDIC.
Return to top
Are “virtual” or “online” financial institutions (such as ING
Direct and President’s Choice Financial) members of CDIC?
CDIC is a federal Crown corporation created in 1967 to insure eligible deposits at member financial
institutions in case of their failure. CDIC’s members are banks, trust companies and loan companies and
cooperative credit associations that have CDIC membership.
ING Bank of Canada (operating under the trade name of ING Direct) is a member of CDIC.
President’s Choice Financial (PCF) is a brand name under which the Canadian Imperial Bank of Commerce
(CIBC) is offering services to shoppers through kiosks at grocery stores under an operating agreement with
Loblaws. Therefore, the total of your eligible deposits held with PCF and CIBC would be covered up to a
maximum of $100 000 (principal and interest combined).
Return to top
How does CDIC calculate insurance for index-linked
deposits?
CDIC 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), for 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), and
- 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, and debentures issues by loan companies that are CDIC members.
Market-linked or index-linked term deposits are term deposits whose returns are linked to a variation in a
stock exchange index. They are neither an insurance contract nor a security. They are deposits redeemable at
maturity.
An index-linked deposit would be insurable if it meets the eligibility criteria described above.
Return to top
How does CDIC calculate insurance in the event of the amalgamation
of 2 member institutions?
CDIC 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), for 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), and
- 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, and debentures issued by loan companies that are CDIC members.
Your existing deposit insurance coverage does not change when one CDIC member buys another, or when two or
more members join together to become one. Any money that you had deposited would still be insured at the new
member institution.
In the event of a merger of CDIC member institutions, the total of your insured deposits made at each
institution before the merger continues to be insured separately up to $100,000. For term deposits, this
separate protection applies until they mature. For demand deposits, separate protection remains in effect
until the money is withdrawn; that is, it is reduced by the amount of any withdrawals as they occur.
Return to top
Does CDIC insure losses occurred because of fraudulent
activities?
CDIC is a federal Crown corporation created in 1967 to insure eligible deposits at member financial
institutions in case of their failure.
CDIC does not cover fraud.
Return to top
