CDIC welcomes first Federal Credit Union
Ottawa – July 4, 2016 – The Canada Deposit Insurance Corporation (CDIC) today welcomed Caisse populaire acadienne ltée to its membership. Operating under the trade name UNI Financial Cooperation, it is the first provincial credit union to enter the federal credit union (FCU) regime.
CDIC, as the federal deposit insurer, will now protect eligible deposits held at UNI. Deposits held at the credit union were previously insured by the New Brunswick Credit Union Deposit Insurance Corporation under provincial legislation.
To support FCU members during the change from provincial coverage of pre-existing deposits to CDIC protection, transitional coverage applies.
During the transition period, pre-existing deposits with UNI continue to be protected up to the coverage limit of the New Brunswick Credit Union Deposit Insurance Corporation.
- For pre-existing demand deposits, such as chequing or savings accounts, the transitional coverage ends after 180 days, and regular CDIC coverage rules will then apply.
- For pre-existing term deposits, such as GICs, transitional coverage will continue to apply until the deposits mature or are cashed out.
- Eligible deposits made after July 1st, including term deposits purchased after that date, will be subject to CDIC coverage rules and protected to a limit of $100,000 per insured category.
CDIC is a federal Crown corporation that contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure. CDIC members include banks, federally regulated credit unions, as well as loan and trust companies and associations governed by the Cooperative Credit Associations Act that take deposits. CDIC is funded by premiums paid by member institutions and does not receive public funds to operate.
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Director, Communications and Public Affairs