Fiscal Agents Products & Services
Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that was created in 1967 to protect the money you deposit in member financial institutions in case of failure.
CDIC's members are banks, trust companies and loan companies and display this sign:
You may read the following information
in the order presented, or use the following questions to jump directly
to the information you seek:
What is the maximum insurance protection?
What happens if a member institution fails?
How is deposit insurance funded?
CDIC insures eligible deposits you make with our members. Insurable deposits include:
Not all deposits and investments
offered by our members are insurable.
By law, the maximum basic protection for eligible deposits is $100,000 per depositor (principal and interest combined) in each member institution Deposits are not insured separately in each branch office of a member institution.
CDIC provides separate protection
for joint deposits, deposits held in trust, and deposits held in registered
retirement savings plans (RRSPs) and in registered retirement income funds
Deposits you own jointly with someone
else are insured separately from in your name, provided that the records
of the member institution:
The maximum insurance for all deposits having the same joint owners at each member institution is $100,000 (collectively, not per individual owner).
Deposits held in trust are insured separately from deposits owned individually by the trustee or the beneficiary, provided that the records of the member institution:
At each member institution, all eligible deposits having both the same trustee and the same beneficiary are combined, and the total insured to a maximum of $100,000.
If a trust deposit has more than one beneficiary, the portion owned by each beneficiary must be identified on the member institution's records and updated each year as of April 30. Each beneficiary's portion is insured up to $100,000.
CDIC does not insure all funds held in registered plans. To be insurable, deposits must be held in savings accounts or in term deposits with a maturity date not exceeding five years, and must be payable in Canadian currency.
The following example shows how
deposit insurance applies to eligible deposits at a CDIC member institution.
More examples of CDIC Coverage are provided at their web site, including Basic Coverage, Joint Deposits, Deposits Held in Trust, Deposits Held in RRSPs, and Deposits Held in RRIFs.
CDIC's member institutions fund deposit insurance through premiums paid on the insurance deposits they hold. If required, CDIC is authorized to borrow additional funds, which the Corporation repays with interest.
The information in this document is presented in a non-technical way and is not intended to be a legal explanation of CDIC's Act and By-laws.
Additional information or a CDIC Membership brochure can be obtained by calling
1-800-461-CDIC (That's 1-800-461-2342)