CDIC: Basic Coverage

CDIC's basic deposit insurance coverage is limited to $100,000 per individual at each member institution. The maximum basic coverage applies to the aggregated total of all insurable deposits an individual has with the same institution, and includes both principal and interest.

Provided they meet the eligibility criteria, basic deposit insurance coverage applies to savings and chequing accounts, term deposits repayable no later than five years from the date of deposit, such as Guaranteed Investment Certificates (GICs), money orders, drafts, certified drafts or cheques.

Basic Coverage: Example 1

If you held the following deposits in Canadian currency at a CDIC member institution, they would be fully insurable:

Deposit	Total value, including interest earned
Savings account	$15,000
Chequing account	$5,000
Guaranteed Investment Certificates (GICs)(term of no more than five years)	(value at maturity) $80,000
Total deposits at this CDIC member	$100,000
Your deposits are fully insurable by CDIC.

Basic Coverage: Example 2

If you made the following deposits and investments at a CDIC member institution, only some of them would be protected by deposit insurance:

Deposit/Investment	Total value, including interest earned where applicable
Insurable
Savings account, Canadian currency	$15,000
Guaranteed Investment Certificates (GICs) (term of no more than five years)	(value at maturity) $20,000
Not insurable
Savings account in U.S. dollars or other foreign currency	$10,000
Mutual fund investments	$15,000

In this example, CDIC insures $35,000 of the total $60,000 held at the member institution.

Basic Coverage: Example 3

If you held the following deposits in Canadian currency at a CDIC member institution, only part of your funds would be protected by deposit insurance:

Deposit	Total value, including interest earned
Savings account	$20,000
Chequing account	$10,000
Five-year term deposits ($65,000 principal plus $10,000 interest)	(value at maturity) $75,000
Total	$105,000

In this example, CDIC would insure your deposits to the $100,000 maximum. Note that interest earned on the term deposits has raised the total value of your deposits above the maximum level of deposit insurance per depositor at one CDIC member institution.

Last modified : 7 July 2005