Are you looking for ways to invest and save your money, but aren’t sure where to begin, or which financial products may be best suited to you? One place to start is exploring products that are protected.
For example, the Canada Deposit Insurance Corporation (CDIC) is a federal organization that protects eligible deposits up to $100,000 per category type, for each of its member banks, in the event of a failure.
Here are three financial products you might not know are eligible for our protection:
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1
Guaranteed Investment Certificates (GIC)
If you’re looking for an investment option that provides a guaranteed return, a GIC may be a good choice. When you purchase one, you’re loaning money to the financial institution for a specific amount of time. In return, you’re guaranteed an interest rate for the investment’s term, and the repayment of your initial investment at the end of the term. It’s a low-risk financial product, making it a popular choice for those willing to lock in the investment.
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2
High Interest Savings Account (HISA)
A HISA, sometimes called an investment savings account, lets you grow your money without locking in for a specific term. It offers higher interest rates than traditional savings accounts and can be part of many different investment plans and held in various account types.
Though many types of this account are eligible for deposit protection, some, such as HISA mutual funds and HISA exchange-traded funds (ETFs), aren’t. Reading the product information or speaking with your financial institution or broker can help you understand what you’re purchasing, and make an informed decision.
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3
Cash deposits in Canadian or foreign currency
Chequing or savings accounts are widely used in Canada and can be held in various account types such as Tax-Free Savings Accounts (TFSAs) or joint accounts. These deposits can be eligible for protection, even if they’re in foreign currency.
Understanding how your savings are protected can help you save with greater peace of mind.
Learn more about protecting your money and calculating your coverage.