How Does CDIC Calculate Insurance?
While financial institutions in Canada do not often fail, it is possible. It is useful for consumers to
know how CDIC deposit insurance works, including how we calculate the amounts to be paid to depositors
following a failure.
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The ABCs of Deposit Insurance |
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|
| Up to $100,000 of your savings are eligible for deposit insurance
offered by CDIC. Your savings must be: |
| Held in… |
| A |
Eligible deposits—for example, savings, chequing and
GICs of 5 years or less |
| + |
Held at… |
| B |
Banks and other financial institutions—eligible deposits must be
held at a CDIC member. |
| + |
And held in… |
| C |
Canadian dollars—U.S. dollar and other foreign currency deposits
are not eligible. |
| A + B + C = eligible deposits |
| Find out more about what’s covered and what’s not. |
|
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CDIC insures deposits that are held in a CDIC member institution, in Canadian dollars. The deposits must
be held in eligible accounts and financial products (see sidebar). CDIC covers up to $100,000 (including
principal and interest).
Many people deposit money into more than one account or financial product. For example, you might have a
personal chequing account, a joint savings account with your spouse, as well as a GIC that is held in an
RRSP. CDIC takes this into account. We calculate insurance payments separately (up to $100,000, including
principal and interest) for EACH of the following:
Get the full picture
Follow the links above for more information about how CDIC calculates deposit insurance for different
types of savings. For example, did you know that when we calculate deposit insurance, we consider joint
deposits (for example, a savings account you hold jointly with your child) separately from savings held in
your name alone? CDIC insures up to $100,000 in savings in accounts held in one name AND up to $100,000 in
savings held in a joint account.
See the summary chart of what's covered and
what's not covered by CDIC.
