The Canadian Deposit Insurance Corporation and the Autorité des marchés financiers
The Canadian Deposit Insurance Corporation (CDIC)
CDIC is a crown corporation founded in 1967 to protect funds deposited in certain federally chartered banks, trust companies, and loan companies. Deposits in Québec chartered institutions are insured by the Autorité des marchés financiers.
If a CDIC-member financial institution declares bankruptcy, CDIC will reimburse you for your insurable deposits up to a preset limit, provided they meet the eligibility criteria. You don't even have to apply—your insurable deposits are automatically covered.
To find out if your financial institution is a CDIC member
- Visit the CDIC Website at www.cdic.ca
- Look for the red & white doorway sticker certifying that the institution is a CDIC member
- Funds in savings and chequing accounts
- Term deposits, such as guaranteed investment certificates (GICs), and unsecured bonds issued by loan companies
- Money orders and drafts
- Certified cheques
- Traveller's cheques issued by member institutions
- Real estate tax accounts for mortgaged property
CDIC does not insure-
- Foreign currency deposits
- Term deposits that mature after more than 5 years
- Unsecured bonds issued by chartered banks
- Bonds and unsecured bonds issued by governments and corporations
- Treasury bills
- Mortgage-backed securities
- Stocks or mutual funds
Note: Deposits and investments with CDIC-member institutions are not all covered. To find out more, consult your financial institution's literature.
Maximum CDIC Deposit Insurance
Basic Coverage up to $100,000
By law, you're entitled to up to $100,000 in coverage at each member institution, including capital and accrued interest. To be eligible, deposits must be in Canadian funds and payable in Canada.
Term deposits and GICs are only insurable if they mature in 5 years or less. Deposits at multiple branches of the same institution are not covered separately.
Registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs), joint deposits and deposits held in trust are insured separately.
To be insured by CDIC, registered plans must be in Canadian funds invested in savings accounts or deposits with terms of under 5 years.
You are entitled to a maximum of $100,000 in coverage for all of your RRSPs combined (including those handled by your self-administered plan's trustee). This amount includes capital and accrued interest.
An additional $100,000 applies to your RRIF.
If you contribute to your spouse's registered retirement savings plans, the funds are considered part of your spouse's investments at the institution where the plans are registered, not your own RRSPs.
Joint deposits may be insured separately from those made solely in your name. Your institution must-
- Indicate that the deposits are jointly owned
- Indicate the name and address of each joint owner
The maximum coverage for all joint owners of all joint deposits placed at a single institution is $100,000.
Deposits Held in Trust
Deposits held in trust are insured separately from the trustee's and beneficiary's own investments if the member institution does all of the following:
- Indicates that the deposits are held in trust
- Indicates the names and addresses of all trustees
- Indicates the names and addresses of all beneficiaries
Deposits held in trust by the same trustee and for the same beneficiary are combined and may be insurable up to a maximum of $100,000 if they are at a single institution.
The Autorité des marchés financiers
The Autorité des marchés financiers is a corporation created to protect funds you invest in certain provincially chartered financial cooperatives, trust companies, savings companies and Desjardins caisses.
The Autorité des marchés financiers is a Québec government body whose mission is to:
- Oversee deposit solicitation and acceptance
- Guarantee payments
- Manage the Fonds d'assurance-dépôts (deposit insurance fund)
The Autorité des marchés financiers provides a maximum guarantee of up to $100,000 per person per registered institution. The guarantee applies to the combined total of all an individual's insurable products at a single member institution.
If deposits are made at different Desjardins caisses, the $100,000 guarantee applies to investments at each location. To be eligible, your deposits must be made and payable in Québec, in Canadian funds. Term deposits are only covered by The Autorité des marchés financiers if they mature in 5 years or less.
Members Providing Deposit Insurance in Québec
- Financial service cooperatives
- Trust companies
- Savings companies
- Caisses Desjardins du Québec
Though the deposits insured are virtually the same as those insured by CDIC, there are a few exceptions. For example, deposit insurance in Québec does not cover share capital, specifically the qualifying and permanent shares of a financial services cooperative, life insurance policies, and segregated funds. The Autorité des marchés financiers provides separate insurance for funds in RRSPs, RIFFs, joint deposits, and deposits held in trust. To find out more, visit www.lautorite.qc.ca/index.en.html .
Assuris (previously CompCorp) provides Canadian life insurance policyholders with protection against loss of benefits due to the financial failure of a member life insurance company.
- Death benefit: $200,000
- Cash value: $60,000
- Accumulated value: $100,000
- Monthly income: $2,000 per month
- Health expenses: $60 000
These benefits can come from a variety of different products:
- Individual Products
- Life insurance
- Disability insurance
- Health insurance
- Long term care insurance
- Accumulation annuities
- Segregated funds
- Group insurance
- Group retirement plans
Assuris coverage applies to benefits under the various policy types issued by member companies. The following factors determine whether your benefits are covered by Assuris:
- You must be a Canadian insured
- Your insurer must be an Assuris member life insurance company
- The benefits provided under your policies must be eligible
To consult a list of all Assuris member insurers or for more information, visit www.assuris.ca .
You can also find out more from your financial institution, which may offer additional coverage.