The Government of Canada has amended the Canada Deposit Insurance Corporation (CDIC) Act to modernize and enhance Canada’s deposit insurance framework. Changes will come into force in two phases – April 30, 2020 and April 30, 2021 – to allow CDIC, its member institutions, and other stakeholders to make procedural or operational adjustments. Until then, current coverage rules apply.

Summary of Changes to Deposit Insurance Coverage

Change to deposit protection Effective date
Expanded coverage of eligible deposits held in foreign currencies April 30, 2020
Extended coverage of eligible deposits with terms greater than 5 years April 30, 2020
Elimination of coverage for travellers’ cheques (travellers’ cheques are no longer issued by CDIC member institutions) April 30, 2020
Separate coverage for up to $100,000 in eligible deposits held under Registered Education Savings Plans (RESPs) April 30, 2021
Separate coverage for up to $100,000 in eligible deposits held under Registered Disability Savings Plans (RDSPs) April 30, 2021
Removal of separate coverage for deposits in mortgage tax accounts (these deposits will be combined with eligible deposits in other categories such as savings in one name) April 30, 2021
New requirements for deposits held in trusts, including nominee brokered deposits that enhance CDIC’s ability to extend protection to these deposits and reimburse them quickly after a CDIC member failure. April 30, 2021