When you deposit money in a bank, credit union or other financial institution, you want to know your money is safe. Canada has a well-regulated financial services sector. In the rare occurrence that your financial institution fails, there are protections in place to help you. Find out about more the protections in Canada.
Which organizations protect your investments in financial institutions?
In Canada, there are two main organizations who help protect your investments at financial institutions. It’s important for you to have confidence to know your money will be there when you want to withdraw it. In the rare chance a problem arises, you can turn to:
- Canada Deposit Insurance Corporation
- Canadian Investor Protection Fund
What is the Canada Deposit Insurance Corporation?
Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation. It provides deposit insurance against the loss of eligible deposits at member institutions in the event of failure.
CDIC member institutions include:
- Banks
- Federally regulated credit unions
- Loans and Trust companies
- Associations governed by the Cooperative Credit Associations Act that take deposits
What is covered?
- savings and chequing accounts
- GICs and other eligible term deposits
What is not covered?
- mutual funds, stocks and bonds
- foreign currency
- cryptocurrencies
What are CDIC’s coverage limits?
If a CDIC member institution fails, eligible deposits at each CDIC member institution are protected to a maximum of $100,000 per separately insured category.
Do you have pay or apply for CDIC coverage?
No. CDIC coverage is free and automatic. If your deposits are insured, CDIC will pay you automatically in case of a failure.
