Deposits held in a RRSP

Notice: The Government of Canada has proposed changes in Budget 2018 to modernize and enhance CDIC deposit protection. These changes would take effect after they are approved by Parliament. Until then, the current coverage rules apply. We will update our website at such time as changes take effect.

Here's an example of a portfolio within a RRSP - and what does (✓) and does not (✗) qualify for CDIC coverage:

  • $ 10,000 in a one-year GIC
  • $ 50,000 in a two-year term deposit ✓
  • $ 50,000 in stocks and bonds ✗
  • $ 130,000 in mutual funds ✗
  • = $240,000 of which $60,000 is covered.

What's protected & why:

The GIC and term deposit are eligible deposits within an insured category - a RRSP. Eligible deposits within one category are insured for up to $100,000. So $60,000 of the $240,000 in total deposits is covered.

What's not insured:

CDIC does not insure stocks, bonds or mutual funds, so $180,000 in those investments is not covered.

LIRAs

A Locked-in Retirement Account (LIRA) is a type of RRSP. LIRAs are treated the same as RRSPs and other insured categories. However, if one person has both a LIRA and a RRSP, they would be combined for a total of $100,000 in the event of a failure.