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1. Misconception: All financial institutions are members of CDIC.
Fact: CDIC member institutions are banks, trust companies and loan companies. Credit unions, life insurance companies and brokerage firms are not eligible to be CDIC member institutions, although they may be members of other protection plans.
2. Misconception: As long as I put my savings in a CDIC member institution, all my deposits are insured.
Fact: CDIC insures eligible deposits you make with CDIC member institutions. Eligible deposits must be in Canadian currency and payable in Canada. CDIC insures:
However, money market accounts are not insurable.
CDIC provides basic deposit insurance coverage up to $100,000 per person in each member institution. The maximum amount applies to the combined total of all insurable deposits a person has with the same member institution.
3. Misconception: I am able to purchase extra deposit insurance.
Fact: You cannot purchase extra deposit insurance coverage. However, certain categories of eligible deposits – joint deposits, for example – are protected separately from your basic coverage. The $100,000 maximum deposit insurance is established by legislation and cannot be increased without an amendment to the Canada Deposit Insurance Corporation Act by the Parliament of Canada.
4. Misconception: I have to apply for deposit insurance to be covered.
Fact: It is not necessary to apply for deposit insurance. It applies automatically to insurable deposits made with a member institution, and you are not charged for deposit insurance protection.
5. Misconception: Deposits are insured separately in each branch of a member institution.
Fact: Deposits are not insured separately in each branch of a member institution. The maximum coverage applies to the total of your eligible deposits at each member financial institution, regardless of how many branches of the same institution you do business with.
6. Misconception: CDIC insures mutual funds.
Fact: Mutual funds are not deposits and therefore are not eligible for CDIC coverage.
7. Misconception: CDIC insures joint deposits up to $100,000 per joint owner.
Fact: The maximum deposit insurance coverage applies to the total of all eligible deposits held by the same joint owners together. Eligible joint deposits are insured separately from any deposits held by the individual owners.
8. Misconception: CDIC insures all money held in registered plans.
Fact: CDIC insures eligible deposits held in registered plans such as Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs). However, not all funds held in registered plans are covered. To be insurable, deposits must be held in savings accounts or in term deposits with a maturity date not exceeding five years, and payable in Canadian currency. Your maximum coverage for all eligible deposits in RRSPs, including those in a self-directed plan, with the same member institution is $100,000. The same limit applies to eligible deposits held in RRIFs.
9. Misconception: The $100,000 maximum basic deposit insurance does not include interest that may have accrued.
Fact: The maximum basic protection for eligible deposits is $100,000, including principal and interest.
10. Misconception: If a member institution's name changes, my deposits are no longer covered.
Fact: A change of name does not create a new and separate member institution. Deposits made with the member institution under its previous name continue to be insured to the $100,000 maximum. Any additional deposits you make with that member institution under the new name are insured – to the extent that your combined total of deposits, including those made before the name change, does not exceed $100,000.
Last modified : 7 July 2005
Fact: CDIC member institutions are banks, trust companies and loan companies. Credit unions, life insurance companies and brokerage firms are not eligible to be CDIC member institutions, although they may be members of other protection plans.
2. Misconception: As long as I put my savings in a CDIC member institution, all my deposits are insured.
Fact: CDIC insures eligible deposits you make with CDIC member institutions. Eligible deposits must be in Canadian currency and payable in Canada. CDIC insures:
- demand accounts such as savings and chequing accounts
- term deposits provided they are repayable no later than five years after the date of deposit
- drafts
- money orders
However, money market accounts are not insurable.
CDIC provides basic deposit insurance coverage up to $100,000 per person in each member institution. The maximum amount applies to the combined total of all insurable deposits a person has with the same member institution.
3. Misconception: I am able to purchase extra deposit insurance.
Fact: You cannot purchase extra deposit insurance coverage. However, certain categories of eligible deposits – joint deposits, for example – are protected separately from your basic coverage. The $100,000 maximum deposit insurance is established by legislation and cannot be increased without an amendment to the Canada Deposit Insurance Corporation Act by the Parliament of Canada.
4. Misconception: I have to apply for deposit insurance to be covered.
Fact: It is not necessary to apply for deposit insurance. It applies automatically to insurable deposits made with a member institution, and you are not charged for deposit insurance protection.
5. Misconception: Deposits are insured separately in each branch of a member institution.
Fact: Deposits are not insured separately in each branch of a member institution. The maximum coverage applies to the total of your eligible deposits at each member financial institution, regardless of how many branches of the same institution you do business with.
6. Misconception: CDIC insures mutual funds.
Fact: Mutual funds are not deposits and therefore are not eligible for CDIC coverage.
7. Misconception: CDIC insures joint deposits up to $100,000 per joint owner.
Fact: The maximum deposit insurance coverage applies to the total of all eligible deposits held by the same joint owners together. Eligible joint deposits are insured separately from any deposits held by the individual owners.
| Example The following example shows how deposit insurance applies to eligible deposits made by individuals in their own name as well as eligible deposits made jointly at the same CDIC member institution: | |
| Carole Savings accounts, chequing accounts and term deposits |
Insured up to $100,000 |
| Paul Savings accounts, chequing accounts and term deposits |
Insured up to $100,000 |
| Carole and Paul, jointly Savings account, chequing account and term deposits |
Insured up to $100,000 |
| Carole and Paul and Robert, jointly Savings account, chequing account and term deposits |
Insured up to $100,000 |
8. Misconception: CDIC insures all money held in registered plans.
Fact: CDIC insures eligible deposits held in registered plans such as Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs). However, not all funds held in registered plans are covered. To be insurable, deposits must be held in savings accounts or in term deposits with a maturity date not exceeding five years, and payable in Canadian currency. Your maximum coverage for all eligible deposits in RRSPs, including those in a self-directed plan, with the same member institution is $100,000. The same limit applies to eligible deposits held in RRIFs.
9. Misconception: The $100,000 maximum basic deposit insurance does not include interest that may have accrued.
Fact: The maximum basic protection for eligible deposits is $100,000, including principal and interest.
10. Misconception: If a member institution's name changes, my deposits are no longer covered.
Fact: A change of name does not create a new and separate member institution. Deposits made with the member institution under its previous name continue to be insured to the $100,000 maximum. Any additional deposits you make with that member institution under the new name are insured – to the extent that your combined total of deposits, including those made before the name change, does not exceed $100,000.
Last modified : 7 July 2005
