If you have a RRSP, RRIF or TFSA in trust, eligible deposits within each of these will be insured for up to $100,000 separately from eligible deposits in your non-trusteed registered plans held in your own name, providing the trust disclosure rules are met. In the event of a member institution failure, the deposit insurance payment will be sent to your trustee.
Many Canadians hold eligible deposits in trusts in:
- registered retirement savings plans (RRSPs);
- registered retirement income funds (RRIFs);
- tax-free savings accounts (TFSAs);
- registered education savings plans (RESPs);
- registered disability savings plans (RDSPs).
Only eligible deposits in RRSPs, RRIFs and TFSAs receive separate or stand-alone coverage under the CDIC Act. Eligible deposits held in RESPs and RDSPs do not receive separate protection and are entitled to coverage only under the trust category (if they are held in trust and the trust disclosure rules are complied with) or the basic coverage category. Therefore, RESPs and RDSPs do not receive the same coverage as other registered products.
For more detailed information about the protection of eligible deposits held in trust, you can consult the Canada Deposit Insurance Corporation Act and the CDIC Joint and Trust Account Disclosure By-law.