How does CDIC deposit insurance work? (Canada)
If your bank failed tomorrow, would your money be safe? For most Canadians the answer is yes, up to a limit. Here is how to think about it.
What CDIC is
The Canada Deposit Insurance Corporation is a federal Crown corporation. It protects eligible deposits at its member banks if one of them fails. You do not sign up and you do not pay for it. It applies automatically when your money is at a member institution.
What is covered
- Savings and chequing accounts
- GICs and term deposits (check the current rules on term length and currency)
- Deposits held inside registered accounts such as a TFSA, RRSP or FHSA, if the money is in eligible deposit products
What is not covered
- Stocks, bonds, mutual funds and ETFs
- Crypto assets
- Money at a non-member institution
The $100,000 is per category, per bank
Coverage is limited per insured category at each member institution. Deposits in your own name, joint deposits and registered accounts are separate categories. So, for example, a TFSA and a regular savings account at the same bank are covered separately.
| Where the money is | Rough effect |
|---|---|
| Savings account in your name | One category |
| Joint account with a partner | A different category |
| TFSA with deposit products | A different category |
Checking a fintech or neobank
This is where people get caught out. A slick app may be a front end for a partner bank, or it may not hold deposits at all. Ask three questions: who holds my money, are they a CDIC member, and is the money held in my name? The answers should be in the app's legal pages or the CDIC member list. Looni is not a bank and does not hold your money.
Looni is being built to scan your statements for hidden fees, forgotten subscriptions and junk charges, and show you what to fix first. Canadian-built, launching soon.