Notice: The Government of Canada has approved changes to the CDIC Act to modernize and enhance CDIC deposit protection. These changes will be reflected on this website when they take effect. Until then, current coverage rules apply.

Term deposits - eligibility for insurance

Term deposits, including Guaranteed Investment Contracts (GICs), with original terms to maturity of five years or less are eligible for CDIC insurance.

That means a GIC with an original term of seven years, for example, is not insured and does not become insured when two years of that term have passed and five years are left. What matters is the original term, not the amount of the term remaining.

Five-year term deposits maturing on non-business days

Sometimes a five-year deposit's term ends on a non-business day. In such cases, the systems of many CDICmember institutions are set to insert the next business day as the maturity date. CDIC will consider the term deposit eligible for insurance if the original term to maturity was five years.

Indexed-linked deposits

Market-linked or index-linked term deposits are term deposits whose returns are linked to a variation in a stock exchange index or other similar index. An index-linked deposit would be insurable if the principal is fully repayable (at maturity or otherwise), it has an original term to maturity of five years or less, and it is payable in Canada in Canadian currency.