Whether you started saving as a child, teenager or adult, you probably keep this hard-earned money in a bank or other financial institution. But have you ever stopped to think what would happen to your deposits if your bank failed?

The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that protects eligible deposits held in its member institutions against the risk of failure. This protection is free and automatic; you don’t need to sign up. But you should take the time to learn how it works, because not all deposits at member financial institutions are protected, and there are limits on deposits that are covered per category for each depositor.

CDIC protects eligible deposits at over 80 financial institutions in Canada, up to a maximum of $100,000 in each separately protected categories. Whether you’re just starting to build your savings or you’re nearing retirement, knowing how deposit protection works can help you make informed decisions about your money.

Recent grads. If you’ve recently graduated from high school or university and you’re entering the workforce, CDIC will protect deposits in your chequing and savings accounts, TFSAs, GICs and RRSPs at member institutions for each depositor per insured category. But not everything in these accounts is covered. Mutual funds and stocks are not covered by CDIC.

Newlyweds or new parents. If you’ve just gotten married or are starting a family, it’s important to know that CDIC protects deposits in joint accounts separately from your own personal deposits. RESPs are also covered by CDIC. In some cases, trust deposits can be covered up to $100,000 per beneficiary. Check with your member institution to find out how much you (and your beneficiaries) are covered for.

Retirees. After a successful career, enjoy your retirement knowing that CDIC protects eligible deposits in RRIFs the same way as RRSPs. And you will still have protection of eligible TFSAs and day-to-day personal deposits, like those in chequing accounts, savings accounts or GICs.

When Canadians think of bank failures, they probably think of people lining up in front of a bank anxious to get their money out. The last time a Canadian bank went under, however, the Spice Girls had a number one hit on the radio, and today we have online banking.

Fortunately, today, surveys show that Canadians are confident that the deposits in financial institutions are safe. And there’s a good reason for that. For more than 50 years, Canada Deposit Insurance Corporation (CDIC) has protected eligible deposits at federally regulated banks, loan companies and other member institutions. So even when a bank has failed, for over five decades, no one has lost a single dollar protected under CDIC.

In fact, during the financial crisis of 2008, while other leading nations struggled to maintain confidence in their banking systems because of failures of long-standing financial titans, Canadians remained confident that the money they had in the bank would be there when they needed it.

Have you ever wondered what would happen if your bank failed? Do financial institutions even ever go under in Canada? Yes, it’s rare, but they have and it could happen.

The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that exists to protect eligible deposits to member financial institutions against their failure. Since it was established by Parliament in 1967, there have been 43 financial institution failures affecting more than two million depositors. These were stressful times, but CDIC was there to protect Canadians. No one lost a single dollar of insured deposits.

It’s important to know that not everything is protected by CDIC. Some deposits, such as mutual funds, stocks and bonds fall outside of CDIC’s umbrella.

If you bank with a CDIC member institution, your eligible deposits including savings accounts, term deposits and GICs, are automatically covered up to $100,000. It is free and automatic, but you should know how it works to fully benefit.

Talk to your financial advisor, ask about deposit insurance where you bank or invest, or contact us.

CEO Leah Anderson talks with Bruce Sellery, personal finance expert and host of the Moolala: Money Made Simple podcast, about how deposit insurance works and how CDIC protects your deposits.

Speaking notes by Mike Mercer, CDIC’s Chief Data and Insurance Officer, to the Independent Financial Brokers of Canada Fall Summit – October 21, 2021.

CDIC’s 2021 Annual Public Meeting – October 21, 2021

Leah Anderson, President and CEO of CDIC, was joined by members of the CDIC Board of Directors and a panel of subject-matter experts for a conversation about the gender gap in financial literacy. Panelists included:

• Dr. Supriya Syal, Deputy Commissioner, Research, Policy and Education at the Financial Consumer Agency of Canada
• Jessica Moorhouse, millennial money expert and host of the More Money Podcast
• Jaime Damak, lifestyle blogger and owner of jesuisunemaman.com
• Linda Caty, CDIC Board member
• Bob Sanderson, Chair of CDIC’s Board of Directors

The panel addressed Canadian-based behavioural research into potential causes for the gender gap and discussed CDIC’s public awareness research, highlighting the significant role women play in supporting financial stability across Canada.

Speaking Notes by Peter Routledge, President and CEO – Credit Union Prudential Supervisors Association (CUPSA) / Federal Regulators Roundtable – June 2, 2021

Speaking Notes by Peter Routledge, President and CEO – 2021 Biennial IADI Research Conference: 10-12 May 2021 / Regulator’s Roundtable Session

Speaking Notes by Peter Routledge, President and CEO – Finance Association of Laurentian University (FALU) – May 7, 2021

CDIC’s President and CEO, Peter Routledge, joined Vanmala Subramaniam, Capital Markets reporter from the Globe & Mail, for an interactive discussion at the Empire Club of Canada. They discussed Canada’s economic volatility in post-pandemic life and how CDIC contributes to making our financial system more resilient to failure.

Peter Routledge, President and CEO, joined members of the Halifax Chamber of Commerce for a special virtual event on March 11, 2021 to speak about how CDIC is making Canada’s financial system more resilient.

The event was followed by a Q&A hosted by Patrick Sullivan, President & CEO of the Halifax Chamber of Commerce.