Deposits held in a Registered Disability Savings Plan (RDSP) are protected separately from the eligible deposits held in other insured categories, such as those held in individual names.
Here’s an example of a portfolio within a RDSP – and what does (✓) and does not (✗) qualify for CDIC coverage:
- $ 20,000 in a GIC ✓
- $ 90,000 in a term deposit ✓
- $ 50,000 in stocks and bonds ✗
- $ 130,000 in mutual funds ✗
Total Portfolio = $290,000
Total Eligible Deposits = $110,000
Total Deposits Protected by CDIC = $100,000
What’s protected & why:
Within the insured category of RDSP, the above GIC and term deposit are eligible deposit products and therefore are together covered for up to $100,000 of CDIC protection. So $100,000 of the eligible $110,000 within the RDSP category are protected. CDIC coverage does not apply to stocks, bonds or mutual funds, so those investments, which amount to $180,000 of the total $290,000 in the category, are not eligible to be insured by CDIC.
Eligible deposits held in RDSPs are protected up to a coverage limit of $100,000 per beneficiary at each CDIC member institution.
At one member institution you have a:
- GIC held in an RDSP for Child 1 – $45,000
- Term deposit held in another RDSP for Child 2 – $105,000
= $150,000 of which $145,000 is protected by CDIC
You will receive coverage for the full amount ($45,000) held in the RDSP for Child 1, because the amount is within the $100,000 coverage limit. You will receive coverage for $100,000 of the $105,000 held in the RDSP for Child 2.
Have more questions about how CDIC deposit protection works? Check out our FAQs and info videos.