The answers provided here are subject to a
disclaimer.
Top 10 Questions
These are the most frequently asked questions.
Deposit insurance coverage:
To verify that your bank is a member, see our List
of CDIC Members.
If your question does not appear in this list, see our FAQs list.
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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The answers provided here are subject to a disclaimer.
