Established in 1967, CDIC (Canada Deposit Insurance Corporation) is a federal Crown corporation that provides deposit insurance to eligible depositors in Canadian banks and federal credit unions. It protects Canadians from possible financial risks posed by bank failures, and it has since become an important part of the financial system in Canada.
Eligible deposits include money held in a chequing, savings or high-interest savings account, term deposits (such as GICs), money orders, certified cheques, and bank drafts. Non-residents of Canada who make an eligible deposit are also protected by CDIC insurance.
Non-eligible deposits, which are not covered by CDIC insurance, include stocks, bonds, mutual funds, ETFs, and other securities. These non-eligible deposits may be covered by the Canadian Investor Protection Fund (CIPF). Deposits at an institution that is not a CDIC member are also not eligible for CDIC coverage.
CDIC offers deposit protection of up to $100,000 per account holder, per insured category, per financial institution. Eligible deposits include chequing and savings accounts, term deposits and Guaranteed Investment Certificates (GICs), as well as many others, which can be split between categories. There are nine CDIC insured categories. This means that you can have at least $900,000 insured at each institution with $100,000 in each category. Some categories allow multiple combinations for more than $100,000 per category, such as joint accounts. Let’s take a look at these nine insured categories to see what CDIC covers and what it doesn’t.
This is the category that would apply to you, unless your deposit can qualify to be considered for any of the other categories below. All eligible deposits held under your name are grouped into this category. This includes your chequing accounts, savings accounts, and any unregistered term deposits that belong to you.
Co-owned (joint) deposits are those held in the names of two or more people. The maximum coverage is $100,000 per set of joint owners. This means that the coverage limit is separate from your eligible deposits held in other insured categories. It also means that you can have more than $100,000 insured in joint accounts, if you have multiple joint accounts with different holders.
For example, you can have up to $100,000 insured in a joint chequing account with your spouse, and have up to another $100,000 insured in a joint savings account with your child.
Eligible deposits held in a Registered Retirement Savings Plan (RRSP) are protected under this category. It doesn’t include stocks, bonds, mutual funds, or other non-eligible deposits, even if you’re holding them in your RRSP. Non-eligible deposits do not count towards your CDIC coverage limit of $100,000 in this category.
There are special types of RRSPs which the CDIC considers to be grouped into this category when calculating your coverage limit. These are:
This means that even if you have a separate LIRA and RRSP, your combined coverage limit between both accounts is still $100,000.
For spousal RRSPs, the coverage is for the owner of the account, which may be different from who is making contributions to the account.
Coverage for Registered Retirement Income Funds (RRIFs) in this category also includes deposits in the following:
Eligible deposits held in a Tax-Free Savings Account (TFSA) are protected under this category, up to $100,000.
Eligible deposits held in a Registered Education Savings Plan (RESP) are protected up to a maximum of $100,000.
Eligible deposits held in a Registered Disability Savings Plan (RDSP) are protected up to a coverage limit of $100,000.
For deposits held in trust, the coverage limit is up to $100,000 per beneficiary.
Added in April 2023 when the CDIC expanded their deposit protection, eligible deposits in a First Home Savings Account (FHSA) are protected up to $100,000.
CDIC offers free deposit insurance coverage to ensure that Canadians can keep their savings safe in the event of a member institution's failure. No monthly fees or premiums are required from depositors, but instead the financial institutions, who are members of CDIC, pay varying premiums which depend on the type and amount of deposits they provide. This means that while you don't have to spend anything extra, your money is still protected by the CDIC!
CDIC’s main objectives are to protect eligible deposits, ensure the continuity of critical financial services, protect the economy, and reduce any risk that taxpayers may face.
CDIC insurance coverage applies to deposits held at Canadian banks and other CDIC members. Examples of CDIC members include major banks, such as CIBC, Scotiabank, RBC, TD, BMO, and National Bank. Federal credit unions, namely Coast Capital and UNI Financial Cooperation, are also CDIC members.
CDIC members are required to make it clear that they are members by showing the CDIC logo in branches, on their website, and in their mobile apps. The CDIC website has a full list of CDIC members.
Bank of Montreal (BMO)
Canadian Imperial Bank (CIBC)
Bank of Nova Scotia (Scotiabank)
TD Bank (TD)
HSBC Bank Canada
Manulife Bank of Canada
Royal Bank of Canada (RBC)
National Bank of Canada
Without CDIC coverage, customers' deposits will not be insured in case of bank failure. This may result in severe financial losses if depositors are not able to recover some or all of their money. It’s important for customers to research their chosen institution thoroughly before investing or storing money with them.
While provincial credit unions are not covered by CDIC, they may be covered by provincial equivalents. Some provinces might even insure all deposits with no coverage limits. The table below looks at how eligible deposits at credit unions are covered in each province.
|Province||Provincial Protection Plan||Coverage Limits (Per Category)|
|Alberta||Alberta Credit Union Deposit Guarantee Corporation (CUDGC)||100% of deposits (No limit)|
|British Columbia||Credit Union Deposit Insurance Corporation of British Columbia (BC CUDIC)||100% of deposits (No limit)|
|Manitoba||Deposit Guarantee Corporation of Manitoba (DGCM)||100% of deposits (No limit)|
|New Brunswick||New Brunswick Credit Union Deposit Insurance Corporation (NBCUDIC)||$250,000|
|Newfoundland and Labrador||Newfoundland and Labrador Credit Union Deposit Guarantee Corporation (NL CUDGC)||$250,000|
|Nova Scotia||Nova Scotia Credit Union Deposit Insurance Corporation (NSCUDIC)||$250,000|
|Ontario||Deposit Insurance Corporation of Ontario (DICO)||$250,000 (No limit for registered accounts)|
|Prince Edward Island||Prince Edward Island Credit Union Deposit Insurance Corporation (PEI CUDIC)||$125,000 per credit union (No limit for registered accounts)|
|Quebec||Autorité des Marchés Financiers (AMF)||$100,000 per depositor|
|Saskatchewan||Saskatchewan Credit Union Deposit Guarantee Corporation (CUDGC)||100% of deposits (No limit)|