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If a CDIC member institution fails, you do not need to file a claim for insured deposits. CDIC automatically makes payment of insured deposits based on the member institution's records. If your deposits are insured, we will write to you advising how and when you will receive your deposit insurance payment.
If your deposits are insured, we may deposit the insured funds in an account in your name with another member institution, or mail you a cheque for the insured amount. The circumstances surrounding each individual failure determine the form of payment.
If CDIC decides to make the deposit insurance payment by depositing funds with another member institution, your payment will be placed in a savings account until you decide how you want to reinvest it.
When a member institution fails, CDIC makes a deposit insurance payment as soon as possible, usually within two months. The payment will include the principal amount of all eligible deposits with the institution in the depositor's name, to a maximum of $100,000 per depositor. Accrued interest will be calculated on eligible deposits up to the date of the deposit insurance payment or the date on which a court-application is filed to wind-up the failed institution, whichever comes first, and will be included in the deposit insurance payment, subject to coverage limits. Eligible deposits that are held jointly, in trust, or in RRSPs or RRIFs are insured separately from other eligible deposits with the same institution that are held in the depositor's name (up to a maximum of $100,000, including principal and interest).
In the case of joint deposits, CDIC will pay the account holders jointly in accordance with the records of the member institution.
To avoid collapsing RRSPs and RRIFs – and avoid the tax consequences – CDIC always tries to transfer the insured funds to another member institution. In order to facilitate the transfer, CDIC obtains the assurances of the Canada Customs and Revenue Agency ("CCRA") that the insured funds can be placed in new registered plans with the "transferee" member institution. Assuming the approval of the CCRA is obtained, the insured funds are placed in a savings account within a registered plan at the transferee institution until you give the institution instructions for reinvestment of the funds.
Last modified : 7 July 2005
If your deposits are insured, we may deposit the insured funds in an account in your name with another member institution, or mail you a cheque for the insured amount. The circumstances surrounding each individual failure determine the form of payment.
If CDIC decides to make the deposit insurance payment by depositing funds with another member institution, your payment will be placed in a savings account until you decide how you want to reinvest it.
When a member institution fails, CDIC makes a deposit insurance payment as soon as possible, usually within two months. The payment will include the principal amount of all eligible deposits with the institution in the depositor's name, to a maximum of $100,000 per depositor. Accrued interest will be calculated on eligible deposits up to the date of the deposit insurance payment or the date on which a court-application is filed to wind-up the failed institution, whichever comes first, and will be included in the deposit insurance payment, subject to coverage limits. Eligible deposits that are held jointly, in trust, or in RRSPs or RRIFs are insured separately from other eligible deposits with the same institution that are held in the depositor's name (up to a maximum of $100,000, including principal and interest).
In the case of joint deposits, CDIC will pay the account holders jointly in accordance with the records of the member institution.
To avoid collapsing RRSPs and RRIFs – and avoid the tax consequences – CDIC always tries to transfer the insured funds to another member institution. In order to facilitate the transfer, CDIC obtains the assurances of the Canada Customs and Revenue Agency ("CCRA") that the insured funds can be placed in new registered plans with the "transferee" member institution. Assuming the approval of the CCRA is obtained, the insured funds are placed in a savings account within a registered plan at the transferee institution until you give the institution instructions for reinvestment of the funds.
Last modified : 7 July 2005
