CDIC protects eligible deposits held in one name separately from the depositors’ eligible deposits held in other insured categories.
In the event of a member institution failure, a depositor’s chequing account, savings account, and any unregistered term deposits in single name would be considered as deposits held in one name and would therefore be combined for a maximum coverage limit of $100,000, per CDIC member institution.
Here are examples of moneys held in one name at one CDIC member institution – and what does (✓) and does not (✗) qualify for CDIC coverage:
- $ 20,000 in a GIC ✓
- $ 40,000 in a term deposit ✓
- $ 25,000 in a savings account ✓
- $ 25,000 in a chequing account ✓
- $ 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 insured & why:
GICs, term deposit, savings accounts, and chequing accounts are eligible deposit products and therefore are covered for up to $100,000 of CDIC protection. So $100,000 of the eligible $110,000 within the deposits held in one name 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.