FAQs about bank failure

Reimbursement

How long will it take CDIC to make a payment on my insured deposits?

CDIC’s goal is to ensure depositors receive their money as quickly as possible. This process is automatic, and depositors do not have to file a claim. Cheques will start to be mailed out in the days following the failed member’s closure. Delivery times may vary.

Are High Interest Savings Accounts (HISA) insured?

CDIC determines the eligibility of High Interest Savings Accounts on a case-by-case basis.

How is my business account(s) covered?

For the purposes of deposit insurance, a depositor may be an individual, an association of persons, a partnership, a corporation or a government entity. Eligible deposits in business accounts may be insurable separately from eligible deposits in individual accounts. “Sole proprietorships” do not benefit from separate deposit protection, as they are not separate legal entities. As a result, deposits in the individual’s name will be combined with the “sole proprietor’s” personal deposits. This video provides useful information about deposit insurance coverage for businesses.

How does CDIC insurance apply to joint deposits?

Joint deposits (in the names of two or more people) are insured separately from the owners’ eligible deposits held in other insured categories, such as those held in their individual names. Each eligible joint deposit is protected for up to $100,000 per set of joint owners, regardless of the number of people who own the deposit.

What is the payment procedure for joint deposits?

Payment of joint deposits will be made according to the registration of the account. Deposit insurance is payable per set of joint owners; that is, the joint owners together receive a single payment of up to $100,000.

How does a deposit qualify as a joint deposit?

To be eligible for separate coverage as a joint deposit, the following information must appear on the records of the CDIC member institution holding the funds:

• A statement that the deposit is owned jointly;
• The name and address of each of the joint owners.

I have multiple joint accounts with different people (my spouse, children, grandchildren), are they each covered up to $100,000?

Yes, joint deposits (in the names of two or more people) are insured separately from the owners’ eligible deposits held in other insured categories, such as those held in their individual names. Each eligible joint deposit is protected for up to $100,000 per set of joint owners, regardless of the number of people who own the deposit.

I have a joint deposit with my spouse, and I also have a joint deposit which was made on my behalf in trust by my broker. Are they each covered up to $100,000?

Yes, deposits made in trust by your broker are in a separate deposit insurance category regardless of their joint nature. Your deposits would therefore be covered by two separate categories – one under the joint deposit insurance category and the other the trust category.

My mortgage is held at the failed member and payment is due at the end of the month. Do I still need to pay it?

Yes, the court-appointed liquidator will continue to process payments throughout the liquidation of the failed member. You must continue to make your payments at the same time as you have in the past. You will be kept fully informed of any changes by the court-appointed liquidator.

If I am unable to make any bill or mortgage payments because my bank account at the failed member no longer works. What do I do?

In order to process your future bill and mortgage payments CDIC recommends you do two things:

1. Open a new bank account at a new institution and ensure your income is being paid there going forward; and
2. Call your creditors and explain these unusual circumstances.

What will happen to all my automatic withdrawals / payment / bills / payroll / pension coming in and out of my account at the failed member?

As the failed member has closed, no transactions will be processed. You need to open an account at a new financial institution and make the necessary changes to redirect all these items to the new account.

What will happen to my loan/line of credit?

You will need to make credit arrangements with another financial institution. Regarding repayment of any debts owed to the failed member, you will need to make arrangements with the court-appointed liquidator.

For depositors

How long will it take CDIC to make a payment on my insured deposits?

CDIC’s goal is to ensure depositors receive their money as quickly as possible. This process is automatic, and depositors do not have to file a claim. Cheques will start to be mailed out in the days following the failed member’s closure. Delivery times may vary.

Are High Interest Savings Accounts (HISA) insured?

CDIC determines the eligibility of High Interest Savings Accounts on a case-by-case basis.

How is my business account(s) covered?

For the purposes of deposit insurance, a depositor may be an individual, an association of persons, a partnership, a corporation or a government entity. Eligible deposits in business accounts may be insurable separately from eligible deposits in individual accounts. “Sole proprietorships” do not benefit from separate deposit protection, as they are not separate legal entities. As a result, deposits in the individual’s name will be combined with the “sole proprietor’s” personal deposits. This video provides useful information about deposit insurance coverage for businesses.

How does CDIC insurance apply to joint deposits?

Joint deposits (in the names of two or more people) are insured separately from the owners’ eligible deposits held in other insured categories, such as those held in their individual names. Each eligible joint deposit is protected for up to $100,000 per set of joint owners, regardless of the number of people who own the deposit.

What is the payment procedure for joint deposits?

Payment of joint deposits will be made according to the registration of the account. Deposit insurance is payable per set of joint owners; that is, the joint owners together receive a single payment of up to $100,000.

How does a deposit qualify as a joint deposit?

To be eligible for separate coverage as a joint deposit, the following information must appear on the records of the CDIC member institution holding the funds:

• A statement that the deposit is owned jointly;
• The name and address of each of the joint owners.

I have multiple joint accounts with different people (my spouse, children, grandchildren), are they each covered up to $100,000?

Yes, joint deposits (in the names of two or more people) are insured separately from the owners’ eligible deposits held in other insured categories, such as those held in their individual names. Each eligible joint deposit is protected for up to $100,000 per set of joint owners, regardless of the number of people who own the deposit.

I have a joint deposit with my spouse, and I also have a joint deposit which was made on my behalf in trust by my broker. Are they each covered up to $100,000?

Yes, deposits made in trust by your broker are in a separate deposit insurance category regardless of their joint nature. Your deposits would therefore be covered by two separate categories – one under the joint deposit insurance category and the other the trust category.

My mortgage is held at the failed member and payment is due at the end of the month. Do I still need to pay it?

Yes, the court-appointed liquidator will continue to process payments throughout the liquidation of the failed member. You must continue to make your payments at the same time as you have in the past. You will be kept fully informed of any changes by the court-appointed liquidator.

If I am unable to make any bill or mortgage payments because my bank account at the failed member no longer works. What do I do?

In order to process your future bill and mortgage payments CDIC recommends you do two things:

1. Open a new bank account at a new institution and ensure your income is being paid there going forward; and
2. Call your creditors and explain these unusual circumstances.

What will happen to all my automatic withdrawals / payment / bills / payroll / pension coming in and out of my account at the failed member?

As the failed member has closed, no transactions will be processed. You need to open an account at a new financial institution and make the necessary changes to redirect all these items to the new account.

What will happen to my loan/line of credit?

You will need to make credit arrangements with another financial institution. Regarding repayment of any debts owed to the failed member, you will need to make arrangements with the court-appointed liquidator.

For brokers and other financial professionals

What is a brokered deposit?

A brokered deposit is a deposit made by a broker or investment dealer at a CDIC member institution for one or more of their clients. There are two types of brokered deposits, and the reimbursement process will vary by deposit type:

• Deposits made in-nominee-name (nominee brokered deposits): Brokers place the deposit and hold it as a nominee (i.e., in trust) on behalf of their clients.
• Deposits made in-client-name: Brokers place the deposit directly in the name of their clients.

For more information about deposit insurance for brokered deposits, please see brokers and other financial professionals.

How are nominee brokered deposits protected by CDIC?

Eligible deposits held by brokers as a nominee (i.e., in nominee-name) for their clients are treated by CDIC as deposits held in trust. The nominee broker is the trustee depositor on record at the member institution, and their clients are the beneficiaries.

Coverage is extended to nominee brokered deposits under the trust deposit insurance category for up to $100,000 per beneficiary, provided that nominee brokers meet key disclosure requirements.

If the nominee brokered deposits are placed under another CDIC insured category (e.g., RRSP, RESP, RRIF, RDSP, FHSA or TFSA) then these deposits can receive separate CDIC insurance coverage of up to $100,000. For more information on how CDIC protects eligible deposits at each of our Member Institutions, please visit What’s covered.

How will CDIC provide insurance payments for in-client name brokered deposits?

CDIC will calculate deposit insurance coverage based on the insurance categories within which brokers placed the deposits. In this instance, CDIC will provide payment directly to the client and not the broker.

How will CDIC provide insurance payments for in-nominee name brokered deposits?

CDIC will calculate the applicable deposit insurance coverage based on the insurance categories within which brokers placed the deposits. CDIC will communicate with nominee brokers to inform them of the process and timelines to reimburse insured deposits. The insurance payments are based on the information collected by CDIC from the failed member and the affected nominee broker. In this instance, CDIC will only provide payment to the affected brokerage firms and will communicate the expected timeframes for receipt of the insurance payment and accompanying statement to those brokers. Each firm is responsible for distributing the reimbursement of insured deposits to their client/beneficiaries.

How long will it take for CDIC to pay nominee brokered insured deposits?

Nominee brokers are required to provide updated beneficiary information within three (3) business days upon request by CDIC. After receiving beneficiary information from the nominee broker, CDIC expects to pay nominee brokered deposits, as soon as possible, and in most cases, it will be within days. However, if the nominee broker submits incomplete beneficiary information, then the payments could be delayed.

I am a broker/agent for a brokerage firm. What can I do to accelerate the payment process for my clients?

For reasons of privacy and confidentiality, CDIC can only discuss deposit insurance payments with the designated brokerage contact provided to CDIC. CDIC is prohibited from sharing any information with individual brokers, broker agents or directly with the clients of the firm.

CDIC handles the nominee broker reimbursement process directly with the brokerage firm’s management. Any questions individual brokers or agents might have should be raised with their firm. CDIC will advise on timeframes for reimbursement of in-nominee-name deposits with brokerage firms.

For deposits that brokers may have placed with the failed member in their clients’ name, CDIC will reimburse the funds directly to the client in whose name the insured deposit has been made.

As a nominee broker, how many days do I have to provide client/beneficiary information to CDIC?

Nominee brokers must provide beneficiary information to CDIC within three (3) business days following CDIC’s request of the required information.

CDIC will reach out to the designated Senior Officers of brokerage firms to communicate file transmission instructions and to coordinate the insurance payout process.

As a nominee broker, where can I find the Nominee Broker Data Requirements (NBDR)?

The specifications for formatting the nominee broker data submission can be found on the following page: Nominee Broker Data Requirements (NBDR).

I am a client of a broker who placed my money at a failed member. My broker has told me to call CDIC. How do I get my money back?

CDIC will calculate deposit insurance coverage based on the insurance categories within which brokers placed the deposits. How you get your money back will depend on how your broker placed the deposit.

If your broker placed your deposits in your name, then CDIC will reimburse you directly using the information in the failed member’s records.

If your broker placed your deposits in their name, then the broker is acting as a trustee on your behalf. In this instance, CDIC makes payments directly to your broker who will in turn contact you about next steps for handling your funds.

Please contact your broker if you have specific questions about your brokered deposits.

What if my client has more than $100,000 in nominee brokered deposits held at a failed institution?

CDIC protects eligible nominee brokered deposits held at a member institution to a maximum of $100,000 per deposit category per beneficiary. Depositors with deposits above the $100,000 limit can file a claim for unprotected balances with the court-appointed liquidator.

For professional trustees

How are professional trustee deposits protected by CDIC?

Deposits held by a professional trustee on behalf of their clients or other beneficiaries are treated by CDIC as deposits held in trust. The professional trustee is the depositor on record for the member institution and their clients are the beneficiaries.

Eligible deposits in professional trustee accounts under the trust deposit insurance category receive coverage of up to $100,000 per beneficiary. Similarly, if they are placed under another category (e.g., RRSP, RESP, RRIF, RDSP, FHSA or TFSA) then they can receive separate coverage of up to $100,000.

What’s the reimbursement process for deposits held by professional trustees?

CDIC will contact all professional trustees impacted by the closure of a failed member to inform them of the process and timelines to reimburse insured deposits.

CDIC will use the contact information on the records of the failed member to contact professional trustees.

The insurance payments are based on CDIC calculations using deposit information collected from the failed member and beneficiary (or other) information provided by the professional trustees.

In this instance, reimbursement is made directly to professional trustees, usually by cheque or wire transfer. CDIC does not provide payments directly to clients or beneficiaries of professional trustees and the latter are responsible for disbursing payment to their clients.

I am a professional trustee who has placed deposits at a member institution. Will CDIC contact me regarding my clients’ deposits?

Yes, if your accounts have been identified on the records of the member institution as a designated Professional Trustee Account (PTA), CDIC will use the member’s records to contact you about the reimbursement processes.

How will CDIC provide insurance payments for deposits placed by professional trustees?

Reimbursements are made directly to the professional trustees usually through wire transfer or cheque. CDIC does not provide payments directly to clients or beneficiaries of professional trustees and the latter are responsible for disbursing payment to their clients.

How long will it take for CDIC to pay professional trustee deposits?

The timing will depend on when professional trustees can provide the required beneficiary information to CDIC.

Professional trustees are required to provide beneficiary information, in accordance with the Professional Trustee Data Requirements (PTDR) to CDIC upon request. CDIC cannot make funds available to professional trustees unless the required data has been provided in relation to the deposits held at the failed member.

After the beneficiary information is received and validated, CDIC will begin to reimburse insured deposits.

As a professional trustee, can I request that the payment be directed to a beneficiary or client?

No. For reasons of privacy & confidentiality, CDIC will only deal with the professional trustee, who is the depositor of record at the failed member. Deposit insurance payments will be provided directly to the professional trustee, who is responsible for distributing any reimbursements to their client/beneficiaries.

How many days do professional trustees have to provide client/beneficiary information to CDIC?

For professional trustees, there is no mandatory timeframe for submitting beneficiary information. However, CDIC cannot make funds available to professional trustees unless we have complete information about deposits held at the failed member. To expedite reimbursement, we recommend submitting the required beneficiary information as soon as possible once CDIC has made the request of you.

What if my client/beneficiary has more than $100,000 in deposits in a designated professional trustee account held at a failed institution?

CDIC protects eligible deposits made by a professional trustee at a member institution to a maximum of $100,000 per deposit category per beneficiary. Depositors with deposits above the $100,000 limit can file a claim for unprotected balances with the court-appointed Liquidator.

I am a client of a professional trustee who placed my money at a failed member. The professional trustee has told me to call CDIC. How do I get my money back?

For reasons of confidentiality, CDIC is prohibited from sharing any deposit information with individual clients of professional trustees during the reimbursement process.

CDIC will calculate coverage based on the insurance categories within which your professional trustee placed the deposits. Once an insurance determination has been made, CDIC will provide payments directly to your professional trustee.

For general trustees

How are deposits held in trust protected by CDIC?

Deposits held in trust are considered a separate insurance category. CDIC insures these deposits up to $100,000, and this protection can extend to each beneficiary named in a trust, provided the trustee has maintained the required beneficiary information on the records at the failed member

How does CDIC calculate the insurance payment for general trustees?

CDIC uses the information on the records of the failed member to calculate coverage.

Trust deposits are protected up to $100,000, and this protection can extend to each beneficiary named in a trust, provided the trustee has maintained the required beneficiary information on the records at the failed member.

As a general trustee, am I required to provide beneficiary information to CDIC when a member institution has failed?

No. At the time of failure, a trustee that is neither a nominee broker nor a professional trustee, does not need to provide CDIC with any beneficiary information.

CDIC will calculate deposit insurance based on the deposit and beneficiary information on the records of the failed member. The amount based on this calculation will be sent to you as the trustee for the deposit, on behalf of the beneficiaries.

I am a general trustee who has placed deposits at a failed member. Will CDIC contact me regarding my deposits?

No. If you provided the required beneficiary information to the member prior to its failure, CDIC will have the necessary information to automatically calculate and reimburse you for eligible deposits up to $100,000 per beneficiary.

CDIC will issue any deposit insurance payments directly to you as the trustee of record, on behalf of the beneficiaries named on the account.

I am a beneficiary with a general trustee. Will I get reimbursed by CDIC or by the trustee?

If you have deposits held in trust at the failed member, CDIC will reimburse the trustee directly.

Deposits held in one name

How long will it take CDIC to make a payment on my insured deposits?

CDIC’s goal is to ensure depositors receive their money as quickly as possible. This process is automatic, and depositors do not have to file a claim. Cheques will start to be mailed out in the days following the failed member’s closure. Delivery times may vary.

Are High Interest Savings Accounts (HISA) insured?

CDIC determines the eligibility of High Interest Savings Accounts on a case-by-case basis.

How is my business account(s) covered?

For the purposes of deposit insurance, a depositor may be an individual, an association of persons, a partnership, a corporation or a government entity. Eligible deposits in business accounts may be insurable separately from eligible deposits in individual accounts. “Sole proprietorships” do not benefit from separate deposit protection, as they are not separate legal entities. As a result, deposits in the individual’s name will be combined with the “sole proprietor’s” personal deposits. This video provides useful information about deposit insurance coverage for businesses.

Joint deposits

How does CDIC insurance apply to joint deposits?

Joint deposits (in the names of two or more people) are insured separately from the owners’ eligible deposits held in other insured categories, such as those held in their individual names. Each eligible joint deposit is protected for up to $100,000 per set of joint owners, regardless of the number of people who own the deposit.

What is the payment procedure for joint deposits?

Payment of joint deposits will be made according to the registration of the account. Deposit insurance is payable per set of joint owners; that is, the joint owners together receive a single payment of up to $100,000.

How does a deposit qualify as a joint deposit?

To be eligible for separate coverage as a joint deposit, the following information must appear on the records of the CDIC member institution holding the funds:

• A statement that the deposit is owned jointly;
• The name and address of each of the joint owners.

I have multiple joint accounts with different people (my spouse, children, grandchildren), are they each covered up to $100,000?

Yes, joint deposits (in the names of two or more people) are insured separately from the owners’ eligible deposits held in other insured categories, such as those held in their individual names. Each eligible joint deposit is protected for up to $100,000 per set of joint owners, regardless of the number of people who own the deposit.

I have a joint deposit with my spouse, and I also have a joint deposit which was made on my behalf in trust by my broker. Are they each covered up to $100,000?

Yes, deposits made in trust by your broker are in a separate deposit insurance category regardless of their joint nature. Your deposits would therefore be covered by two separate categories – one under the joint deposit insurance category and the other the trust category.

Mortgage / bill payments

My mortgage is held at the failed member and payment is due at the end of the month. Do I still need to pay it?

Yes, the court-appointed liquidator will continue to process payments throughout the liquidation of the failed member. You must continue to make your payments at the same time as you have in the past. You will be kept fully informed of any changes by the court-appointed liquidator.

If I am unable to make any bill or mortgage payments because my bank account at the failed member no longer works. What do I do?

In order to process your future bill and mortgage payments CDIC recommends you do two things:

1. Open a new bank account at a new institution and ensure your income is being paid there going forward; and
2. Call your creditors and explain these unusual circumstances.

What will happen to all my automatic withdrawals / payment / bills / payroll / pension coming in and out of my account at the failed member?

As the failed member has closed, no transactions will be processed. You need to open an account at a new financial institution and make the necessary changes to redirect all these items to the new account.

What will happen to my loan/line of credit?

You will need to make credit arrangements with another financial institution. Regarding repayment of any debts owed to the failed member, you will need to make arrangements with the court-appointed liquidator.

Term deposits

What happens to my GIC?

GICs are eligible for CDIC coverage. These will be cashed out immediately, regardless of the length of time left in the term, and paid out, including any interest owing, up to the CDIC maximum of $100,000. Early redemption fees will not be charged.

Interest on eligible deposits, accrued and payable up to the date of the bank’s closure, will be calculated according to the deposit contract with the closed institution. Interest will be combined with the principal in calculating insurance payouts, up to a maximum of $100,000 per depositor, per insured category.

Can I transfer my non-registered (savings, chequing, GICs) deposits directly to another bank instead of waiting for a cheque in the mail?

No. Payments are mailed to depositors automatically.

Since I do not have any specified interest on my index-linked GIC, how will you calculate my interest?

Interest will be calculated according to the deposit contract (interest rate) with the bank and accrued up to the date the bank closed.

Registered deposits

Are all products in my RRSP / RRIF / RESP / RDSP / TFSA / FHSA covered by CDIC?

Eligible products include savings and chequing accounts, GICs or other term deposits, money orders, certified cheques, and bank drafts issued by CDIC members are protected by CDIC.

CDIC does not insure mutual funds, stocks, bonds, or ETFs. These financial products may be protected under different regimes.

What are my coverage limits for my RRSP / RRIF / RESP / RDSP / TFSA / FHSA?

CDIC insures eligible deposits up to a maximum of $100,000 (principal and interest combined) per depositor per insured category. RRSP, RRIF, RESP, RDSP, TFSA and FHSA are each considered separate insurance categories.

CDIC does not insure mutual funds, stocks, bonds, or ETFs. These financial products may be protected under different regimes.

Are there tax consequences to the reimbursement of insured deposits in my RRSP / RRIF / RESP / RDSP / TFSA / FHSA?

Insured deposits held in registered plans such as RRSP, RRIF, RESP, RDSP, TFSA and FHSA will be held temporarily while CDIC works with the Canada Revenue Agency to ensure they remain tax-sheltered. CDIC will communicate directly with these depositors to inform them of next steps.

How do you calculate insurance on a spousal RRSP?

Deposit insurance on spousal RRSP’s is calculated based on the named owner of the RRSP and not the individual who made the deposit and received the tax receipt (i.e. the contributor).

Will I continue to receive my monthly RRIF payments?

Questions with regard to monthly RRIF payments should be directed to the court appointed liquidator.