Deposits held in a registered retirement savings plan (RRSP)
Here’s an example of a portfolio within a RRSP – and what does (✓) and does not (✗) qualify for CDIC coverage:
- $ 10,000 in a one-year GIC ✓
- $ 50,000 in a two-year term deposit ✓
- $ 50,000 in stocks and bonds ✗
- $ 130,000 in mutual funds ✗
- = $240,000 of which $60,000 is covered.
What’s protected & why:
The GIC and term deposit are eligible deposits within an insured category – a RRSP. Eligible deposits within one category are insured for up to $100,000. So $60,000 of the $240,000 in total deposits is covered.
What’s not insured:
CDIC does not insure stocks, bonds or mutual funds, so $180,000 in those investments is not covered.
A Locked-in Retirement Account (LIRA) is a type of RRSP. LIRAs are treated the same as RRSPs and other insured categories. However, if one person has both a LIRA and a RRSP, they would be combined for a total of $100,000 in the event of a failure.