that changed in 1967, when parliament created the canadian deposit insurance corporation (cdic) to address growing public concern about the safety of bank deposits. a federal crown organization similar to the federal deposit insurance corporation (fdic) in the u.s., the cdic is charged with insuring deposit savings and thereby maintaining public confidence in the nation’s financial system. canadian citizens do not have to sign up with the cdic or pay any type of fee to protect their money.
if a member banking institution is unable to meet its obligations, the cdic will step in to cover funds up to a maximum of $100,000 per depositor.most canadian banks, loan companies and trust companies are cdic members. for access to a full member list, see the cdic’s website.what the cdic covers the corporation insures deposit savings only for eligible products. all covered deposits must be in canadian currency.cdic account categoriesthe cdic has a cap of $100,000 per depositor within each member institution; however, it is possible to increase that limit by diversifying deposits among the six account categories: joint savingsjoint accounts are insured separately from each account holder’s personal account.
so, if tom and tara also have a $40,000 term deposit held in trust for their daughter tina, cdic would pay another $40,000 in addition to the $150,000 for their other accounts. (trusts are a common part of estate planning. investments must mature in no more than five years, and mutual funds are not covered.
no one has lost a single dollar under cdic protection. canada has not seen a bank failure since security home mortgage corporation, formal designation includes authority for canada’s largest banks. learn more > how we protect depositors in a failure. although bank failures are rare in canada, cdic is there to protect deposits at its member institutions, big or small. recent bank failures, how does cdic work, cdic insured banks, cdic coverage joint account, security home mortgage corporation, cdic coverage per account, are credit unions covered by cdic, cdic definition
the surprisingly extensive list is reason enough to take the extra step of making sure your bank is registered as a member of cdic so that you can be assured of the safety net it provides.