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.
Deposits held in more than one name (i.e. 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:
- Open a new bank account at a new institution and ensure your income is being paid there going forward; and
- 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 (RRSP, RRIF, RESP, RDSP, TFSA, FHSA)
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.