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Frequently asked questions
Coverage
Federal credit unions
What is a federal credit union (FCU)?
Credit unions and caisses populaires are financial cooperatives. They can offer chequing and savings accounts, term deposits, and more. To join these institutions, you may need to become a cooperative member.
In Canada, provincial laws usually govern credit unions and caisses populaires. In 2012, the Government of Canada created the framework that allows them to continue as federal credit unions (FCUs) to carry on business across Canada. When a credit union becomes a federal credit union, it automatically becomes a member under CDIC protection.
To support FCUs during the change from provincial coverage to CDIC protection, transitional coverage applies.
Transitional coverage is CDIC deposit insurance that protects existing eligible deposits made at the provincial credit union before the transition. The transition period lasts for 180 days, during which CDIC protection will apply to eligible deposits made before the transition.
Transitional coverage of deposits
Pre-existing deposits: Pre-existing demand deposits are covered up to the provincial limit during the transition period (180 days).
New deposits: Deposits made after a provincial credit union becomes a CDIC member are insured up to $100,000 per category.
Once the transition period ends, CDIC deposit insurance applies as normal.
Transitional coverage of term deposits
Pre-existing deposits: Pre-existing term deposits are covered up to the provincial limit until they mature or are cashed out.
New deposits: Deposits made after a provincial credit union becomes a CDIC member are covered up to $100,000 per category.
After the transition period ends, all eligible deposits are combined and covered up to $100,000 per category.
My fintech claims to offer CDIC coverage but I don’t see them on your list of members? Is my fintech protected by CDIC?
No, financial technology companies (sometimes called fintechs or neo banks) are not CDIC member institutions. CDIC does not protect your funds against the failure of a fintech.
Depending on how the fintech places your funds with a member institution, CDIC protection may or may not apply.
If the fintech places your funds in trust and names you as a beneficiary, those deposits are protected for up to $100,000 within that account, at that member institution, should that member institution fail (provided certain disclosure rules are met).
These funds would also be insured separately from other funds you may hold at the same member institution (e.g.: chequing account, TFSA, etc.).
If I already have deposits in the financial institution that the fintech has partnered with, will it impact my existing coverage?
If the fintech places your funds in trust and names you as a beneficiary, those deposits are protected for up to $100,000 within that account, at that member institution, should that member institution fail (provided certain disclosure rules are met).
These funds would also be insured separately from funds held at the same member institution but in different insured deposit categories (ie: in own name, TFSA, etc.).
If my fintech fails, how do I access my funds?
CDIC does not protect your funds against the failure of a fintech. CDIC protects eligible deposits held at member institutions in case one of those member institutions were to fail. We encourage you to contact your fintech directly with questions on how your funds are placed and how to access your funds if your fintech fails.
What happens to my fintech-issued reloadable prepaid card if my fintech fails?
For information on how CDIC protection applies to general-purpose reloadable prepaid cards, visit our Prepaid cards page.
Are prepaid gift cards or shopping mall cards eligible for CDIC coverage?
No, a credit balance on a prepaid gift or mall card is not eligible for deposit insurance.
If my prepaid card is eligible for deposit protection, how would CDIC calculate the amount owed in the event of failure of the CDIC member institution?
In the event of the failure and closure of a CDIC member institution, CDIC would reimburse insured deposits up to $100,000 per insured category.
Funds loaded to general-purpose reloadable prepaid cards can be held at a CDIC member institution in different ways. The way funds are held impacts how CDIC would calculate the amount owed in the event of a member’s failure.
For eligible general-purpose reloadable prepaid cards where funds loaded to the card are held with the CDIC member directly in the cardholder’s name, funds would be combined with the cardholder’s other eligible deposits held at that same member, for up to $100,000 of deposit protection, per depositor, per category.
For cards that are set up so funds loaded to the card are held with the CDIC member through the program card manager (in trust for cardholders), CDIC insures up to $100,000 for each beneficiary named in a trust, provided certain disclosure requirements are met. For more information, please visit our web section on trust deposits.
NOTE: CDIC only protects eligible deposits held at CDIC member institutions, it does not protect funds held at non-members. Deposit insurance does not provide protection if your general-purpose reloadable prepaid card is lost or stolen, subject to fraud or a cyber event.
Are general-purpose reloadable prepaid cards eligible for CDIC deposit protection?
Some, but not all, general-purpose reloadable prepaid cards are eligible for CDIC deposit protection. For example, the funds loaded to a prepaid card must be held at a CDIC member institution, the card must be registered to the cardholder, and the records of the CDIC member must show who they owe the deposit liability to.
Ask your CDIC member institution or card manager for details about whether your particular product is eligible for CDIC coverage, and the nature of the coverage offered.
Are market-linked GICs eligible for deposit insurance?
Eligible deposits include savings accounts, chequing accounts, GICs or other term deposits, money orders, certified cheques, and bank drafts issued by CDIC members.
Market-linked or index-linked deposits are eligible for CDIC coverage since they are term deposits whose returns are linked to a variation in a stock exchange index. They are neither an insurance contract nor a security. They are deposits redeemable at maturity.
Are funds “in transit” still covered by CDIC? I have money at one CDIC member (ABC Trust) and I have instructed them to transfer the funds to another CDIC member (XYZ Bank) in an eligible deposit.
Yes. Funds that are “in transit” means only that your transfer instructions have not yet been fully carried out. At all times, either ABC Trust or XYZ Bank would be liable to you for the monies. The liability of XYZ Bank would commence on its receipt of the monies from ABC Trust, and conversely, until XYZ Bank receives the monies, ABC Trust would remain liable for them.
Are deposits held at a bank branch in Canada by a non-resident or non-Canadian citizen eligible for CDIC coverage?
The place of residence or nationality of depositors does not affect the eligibility of their deposits for CDIC coverage. Deposits by a non-resident or non-Canadian citizen are eligible for CDIC coverage if the funds are eligible deposits and if they are recorded at a branch or office of a CDIC member institution in Canada.
I am not a Canadian citizen. Can I still benefit from CDIC protection?
Yes. The place of residence or nationality of depositors does not affect the eligibility of deposits for CDIC coverage.
Does CDIC protect deposits for sole proprietorships?
Deposits made by sole proprietorships are protected. They are not considered separate and distinct from the sole proprietor (the individual). Eligible deposits under sole proprietorships, therefore, would be combined with those of the sole proprietor in the same member institution.
If I have more than $100,000, can I keep my savings safe?
Yes. CDIC’s coverage limit applies separately to each deposit category at each member institution. This means that eligible deposits in your chequing or savings accounts – and unregistered term deposits in your name – are protected separately from those in RRSPs, TFSAs, RRIFs, and so on. Download our brochure for a visual breakdown of how this works.
How can I find out how much of my money is protected by CDIC?
No. You do not need to sign up for deposit insurance. Coverage is free and automatic for eligible deposits in any of our member institutions. In the event of a failure, CDIC relies on the records of the failed institution to obtain your contact information and determine your deposit insurance protection.
What is a depositor?
For the purpose of CDIC deposit insurance, the depositor may be an individual (including sole proprietorship), corporation, partnership, government, church, charity, non-profit organization, estate and trustee that has monies placed in a member institution.
Member institutions
Are my deposits in U.S. subsidiaries of a Canadian financial institution covered by CDIC?
I have deposits in different branches of the same financial institution. Are they separately covered?
Deposits are not insured separately if made at different branches of the same CDIC member institution.
What happens to coverage if two CDIC members merge?
If two or more CDIC member institutions amalgamate, insured deposits made at each institution before the amalgamation continue to be insured separately up to $100,000 per depositor per category, as if the institutions had not amalgamated. The amount of separate coverage is reduced by any withdrawals made from those separate deposits, or as term deposits mature (or are redeemed). Coverage with respect to any deposits made with the entity that resulted from the amalgamation depends on the aggregate volume of the deposits you made at the institutions before they amalgamated.
If your existing deposits (i.e., the sum of deposits you had with the entities immediately prior to the amalgamation) add up to a total of $100,000 or more, any new deposits you make at the institution after amalgamation will exceed the $100,000 maximum, so they will not be insured by CDIC.
If your existing deposits add up to a total of less than $100,000, any new eligible deposits you make at the amalgamated institution will be added to those previous deposits, and the total will be insured to a maximum of $100,000.
What if I have money in a provincial credit union?
Are credit unions and caisses populaires covered by CDIC?
Credit unions and caisses populaires are governed by provincial laws and cannot be CDIC members. They can apply to continue business as federal credit unions and will become CDIC members once the continuance receives regulatory approval.
Can a CDIC member institution decide to cease its membership?
Yes. A member institution can apply to CDIC to cancel membership if it has ceased to take deposits.
Are subsidiaries covered by CDIC?
No. A member institution can own subsidiaries offering a wide range of financial products and services, such as investment, brokerage and insurance firms or trust and loan companies. Although they may be owned by the same group or parent company, they are not necessarily all CDIC members. You can consult the list of CDIC’s member institutions.
I don’t see my financial institution’s name in CDIC’s list of member institutions. Does this mean my deposits are not protected by CDIC?
Some CDIC members have divisions or carry out business under trade names which are not distinct members, and may fall under the coverage of the CDIC member institution owner . Provincial credit unions are protected by the province’s deposit insurer and not by CDIC. If your financial institution isn’t on our list of member institutions, you can contact CDIC to inquire about deposit protection.
Can I get information about CDIC at my financial institution?
CDIC member institutions are given brochures to display in their branches, and are required by law to display the CDIC decal on the door of each retail branch and on their websites and in their mobile banking apps. Additional information on CDIC coverage is also available on member institution websites and mobile banking applications. Consult the display requirements.
What is a CDIC member institution?
CDIC member institutions include federally regulated deposit-taking institutions such as banks, trust companies, loan companies, and federal credit unions.
Deposit insurance changes
Do these changes mean that there is a problem with my financial institution?
Banks in Canada are well regulated and discouraged from taking excessive risks.
These changes ensure that the deposit insurance legislative framework remains responsive to changes in Canada’s financial services sector, and continue to reflect the various deposit products and services offered by banks and used by depositors.
What do I have to do to ensure that my money is protected with these new changes?
CDIC coverage is free and automatic, but there are a few things you can do to protect your hard-earned money:
Stay informed by getting familiar with the changes and by learning what is covered and what is not
Keep your contact information at your financial institution up-to-date so CDIC can send payment if necessary
Make sure your financial advisors or brokers know about CDIC’s rules for deposit protection.
The phased implementation will allow CDIC, its member institutions and other stakeholders to make the necessary procedural or operational adjustments to accommodate the changes.
What changes will take effect in each phase?
Summary of changes to deposit insurance coverage
Change to deposit protection
Effective date
Expanded coverage of eligible deposits held in foreign currencies
April 30, 2020
Extended coverage of eligible deposits with terms greater than 5 years
April 30, 2020
Elimination of coverage for travellers’ cheques (travellers’ cheques are no longer issued by CDIC member institutions)
April 30, 2020
Separate coverage for up to $100,000 in eligible deposits held under Registered Education Savings Plans (RESPs)
April 30, 2022
Separate coverage for up to $100,000 in eligible deposits held under Registered Disability Savings Plans (RDSPs)
April 30, 2022
Removal of separate coverage for deposits in mortgage tax accounts (these deposits will be combined with eligible deposits in other categories such as savings in one name)
April 30, 2022
New requirements for deposits held in trusts, including nominee brokered deposits that enhance CDIC’s ability to extend protection to these deposits and reimburse them quickly after a CDIC member failure
April 30, 2022
Why has deposit insurance protection changed?
CDIC has protected Canadians’ hard-earned savings for over 50 years and these changes help further strengthen deposit protection by keeping pace with the way Canadians save their money.
Phase 2 changes
Why has deposit insurance protection been removed for mortgage tax accounts?
These accounts typically have small balances and funds will remain protected under other coverage categories.
Separate coverage for mortgage tax deposits was originally provided to reflect the high use of mortgage tax accounts, and the high amount of funds held in these accounts by depositors, for the purpose of making tax-related payments.
Over the years there has been a significant decline in the use of mortgage tax accounts.
The removal of separate coverage for mortgage tax accounts resulted from recommendations at the last Deposit Insurance Review, which Parliament adopted via amendments to the CDIC Act.
What are the changes to deposit insurance that took effect on April 30, 2022?
Separate coverage for up to $100,000 in eligible deposits held under Registered Education Savings Plans (RESPs)
Separate coverage for up to $100,000 in eligible deposits held under Registered Disability Savings Plans (RDSPs)
Removal of separate coverage for deposits in mortgage tax accounts (these deposits will be combined with eligible deposits in other categories such as savings in one name)
New requirements for deposits held in trusts, including nominee brokered deposits that enhance CDIC’s ability to extend protection to these deposits and reimburse them quickly after a CDIC member failure
Phase 1 changes
What should I do if I have travellers’ cheques?
As of April 30, 2020, CDIC no longer covers travellers’ cheques in the event of failure of a CDIC member institution. If you wish to redeem travellers’ cheques in your possession, you will need to contact your financial institution to determine whether they continue to be honoured.
Why has deposit insurance protection been removed for travellers’ cheques?
CDIC protection has been removed for travellers’ cheques since CDIC member institutions no longer issue travellers’ cheques and have not done so for some time. Travellers’ cheques currently available for purchase are not issued by institutions covered by CDIC.
What were the changes to the coverage of term deposits?
Effective April 30, 2020, term deposits of more than five years are eligible for CDIC protection. The five-year term limit has been removed. Keep in mind that the deposits with terms of over five years would not receive separate coverage but would be combined with other deposits within the same category.
Are my U.S. funds held at a U.S. bank covered by CDIC?
No. Foreign currency deposits at foreign financial institutions are not covered by CDIC. American currency in U.S.-based banks may be covered, however, by the Federal Deposit Insurance Corporation (FDIC). Funds held in other foreign financial institutions may be covered by that country or region’s deposit insurer, so be sure to check with them.
What conversion rate would CDIC apply on foreign currency deposits in the event of failure?
In the majority of cases, CDIC would use the conversion rates published by the Bank of Canada on the date of failure. If the Bank of Canada does not publish a rate for a particular foreign currency, then the rate would be based on whatever the rate was at the failed member institution on the date of failure.
How will my foreign currency deposits be reimbursed in case of failure?
Foreign currency deposits would be converted into, and be payable in, Canadian dollars.
What foreign currencies are covered?
All foreign currencies are eligible for CDIC deposit protection up to a maximum of $100,000 (principal and interest combined) per depositor in each of the insured categories.
Is foreign currency a separate category of deposit insurance?
No. Foreign currency deposits do not receive separate coverage. In the event of a failure, they would be combined with other deposits in the same deposit insurance category. For example, savings in a US Dollar account would be combined with savings in a chequing account for the purposes of calculating deposit protection.
Do the changes to protection for foreign currency deposits and deposits with terms >5yrs mean that a depositor gets an additional $100,000 in protection for each of these types of deposits?
No. These deposits will not receive separate deposit insurance protection. Instead, they will be combined with other deposits that a depositor holds in the same deposit insurance category at the same member institution. CDIC’s deposit insurance categories include:
deposits in one name, co-owned deposits (formerly jointly held deposits), deposits held in trust for someone else, deposits in RRSPs, deposits in RRIFs, deposits in TFSAs, deposits in FHSAs, deposits in RESPs, and deposits in RDSPs.
So, for example, if a client holds funds in her own name in a CAD chequing account and in a USD savings account, these would be added together and CDIC would extend deposit insurance coverage up to a total of $100,000 CAD. CDIC would convert the amount in the foreign currency account to determine the amount protected.
CDIC information
Does CDIC cover deposits in foreign currency? What about U.S. dollars?
CDIC covers deposits in foreign currency, including U.S. dollars. Eligible deposits must be payable in Canada. Read more about what’s covered and what’s not.
Does CDIC protect deposits in the event of fraud?
No. CDIC does not cover losses due to fraud. CDIC coverage only applies in the event of a member institution failure. To learn about protection from fraud or scams, please visit the Financial Consumer Agency of Canada.
Who decides what deposits are covered or not?
The terms and conditions of CDIC deposit protection are set out in the CDIC Act as approved by the Parliament of Canada.
CDIC’s role is vital to the stability of the Canadian financial system and to the flow of financial services. The CDIC Act provides that CDIC cannot be placed into bankruptcy. CDIC is a Crown corporation and is backed by the Government of Canada.
How is CDIC funded?
CDIC does not receive tax dollars or public funds to operate. CDIC is fully funded by premiums paid by our member institutions.
Reimbursement
What would happen to direct deposits to my account at the failed member institution?
Direct deposits (such as paycheques or pension payments) into accounts at the failed member institution would no longer be processed. Depositors would have to contact the person or organization issuing these deposits to make new arrangements.
Can I deposit, cash or write a cheque on my account at the failed member institution?
Since deposits cannot be used or accessed once a CDIC member institution has failed, it would no longer be possible to deposit a cheque, to cash a cheque, or to write new cheques for funds held at the failed member institution. Uncashed cheques issued from an account at the failed member institution (even if written prior to the closure) would be returned.
Uncashed cheques issued by the failed member institution for interest earned on deposits would be included in the deposit insurance payment.
What about paying mortgage and other debts?
If a CDIC member institution were to fail, customers would still be responsible for repaying money they owe. This includes mortgage payments. The liquidation firm appointed to settle the business affairs of the failed member institution would collect this money and contact customers to discuss their payments.
If my member institution fails, what would happen to the automatic withdrawals I set up to pay my bills?
If your member institution failed and you use automatic withdrawals/payments from your accounts to pay mortgages, loans, taxes or to cover regular bills such as those for utilities or credit cards, these would no longer be processed.
You would need to contact your service provider/utility/other lender and relevant tax authorities to see whether scheduled payments from your accounts were processed prior to their closures. You would also need to make arrangements with them for future bill payments and to cover off any outstanding amounts.
Where should I take my money if my member institution has closed? How would I know which institution is safe?
CDIC has over 80 member institutions. All eligible deposits in any CDIC member institution are protected up to $100,000 in each of the separate deposit categories. More than 95 percent of personal deposit accounts in our members are fully protected by CDIC. The Financial Consumer Agency of Canada provides information on the steps you can take for transferring your products or services to another financial institution.
Chequing, Savings, Joint Accounts
CDIC’s goal is to reimburse funds from chequing, savings and joint accounts to depositors within days of the date of failure. The international standard for reimbursement, established by the Financial Stability Board, is seven days.
Trust Deposits
Deposits in valid trusts are protected to $100,000 per beneficiary. CDIC would contact broker-trustees to inform them of its process to reimburse insured deposits. CDIC would remit payment to broker-trustees within seven business days of receiving wire transfer/payment information. Payment would be based on CDIC calculations and deposit information at the failed institution.
Registered Deposits
Deposits in valid trusts are protected to $100,000 per beneficiary. CDIC would contact broker-trustees to inform them of its process to reimburse insured deposits. CDIC would remit payment to broker-trustees within seven business days of receiving wire transfer/payment information. Payment would be based on CDIC calculations and deposit information at the failed institution.
Deposits not eligible for CDIC coverage
Depositors with funds not protected by CDIC will need to file a claim with the liquidation firm when it is appointed by the courts in order to participate in the liquidation and payout of the failed member institution.
Could I transfer my insured deposits directly to another member institution instead of waiting for a cheque in the mail?
No. Cheques for insured deposits in savings accounts and joint accounts would be mailed to depositors.
If one CDIC member fails, should I be concerned about my deposits at other financial institutions?
Your eligible deposits in a CDIC member institution would not be affected by the closure of another CDIC member and would remain protected up to $100,000 in each deposit category.
What would happen if I obtained a pre-approved mortgage right before the failure? What would its status be?
You would need to contact the liquidation firm appointed to settle the member institution’s business affairs.
How are deposits held jointly paid out?
Jointly held accounts are covered up to the $100,000 maximum per category, and joint owners together would receive a single payment.
How are brokered deposits and deposits held in trust handled by CDIC?
Deposits made by brokers can be either as:
a) an agent (recorded in client’s name)
Would be covered as a deposit made by the client and added up with any other client deposits owned under the same category.
Payment of non-registered deposits such as savings and chequing accounts, joint accounts, GICs and other term deposits, and property tax accounts would be sent directly to depositors.
b) a nominee (recorded in broker’s name held in trust for client)
Would be covered under the deposits held in trust category and separate from other client deposits (except if they are held in a registered plan).
CDIC would contact broker-trustees to inform them of its process to reimburse insured deposits.
CDIC would remit payment to broker-trustees within seven business days of receiving wire transfer/payment information. Payment would be based on CDIC calculations and deposit information at the failed institution.
Would business accounts be covered?
Eligible deposits in the name of a partnership or corporation are covered to a limit of $100,000 per deposit category. These deposits would be covered separately from eligible personal deposits held in the names of the individuals who own the partnerships and incorporated businesses.
Owners of sole proprietorships, however, would not benefit from separate deposit protection.
What would happen with my operating loan/line of credit in a member institution failure?
Since the failed member institution would be closed, you would no longer have access to any funds from loans, lines of credit or similar credit accounts that you may have had with the member institution. You would need to make credit arrangements with another financial institution.
You would also still need to repay any debts that you owed to the member institution. To do this, you would need to make arrangements with the liquidation firm appointed by the Court to settle the member institution’s business affairs.
Would CDIC cover ALL of my savings?
CDIC protects eligible deposits to a maximum of $100,000 for each deposit category. Depositors with funds that are not protected by CDIC would be able to file a claim with the liquidation firm after it is appointed by the courts. Contact information for the liquidation firm would be posted on CDIC’s website once the firm is appointed by the Court.
Can CDIC assist large financial institutions that are failing, or just smaller institutions?
Yes. CDIC is the resolution authority for all its members, regardless of size, and has the tools, expertise and readiness to resolve any of them. Read more about our role as resolution authority.
Does CDIC have enough money to cover all insured deposits in the event of a member institution failure?
CDIC is well-funded and has the authority to borrow additional funds from the Government if necessary, with Parliamentary approval. Read more about our funding and about other resolution tools.
Has a Canadian financial institution ever actually failed?
Since its creation in 1967, CDIC has handled 43 failures, affecting over 2 million depositors. No insured depositor has lost a single dollar under CDIC protection.
Does CDIC coverage of $100,000 include principal and interest?
Yes. Total coverage in each deposit category, including principal and interest, is up to $100,000.
If my financial institution fails, do I still have access to my deposits? Can I deposit, cash or write a cheque on my account at the failed member institution?
Under the CDIC Act, CDIC has certain powers or “tools” to assist it with the resolution of a failed member. Access to deposits is dependent on what tool CDIC employs to resolve the failed member. In many instances, the institution would remain open which would allow continued access to deposits. In some instances, insured accounts would be paid out and access to a chequing account, for example, would cease. You can consult more information on CDIC’s resolution tools.
When and how would I get my money in a reimbursement of insured deposits (payout)?
CDIC will process reimbursements automatically based on information available at the member institution at the time of failure. Since reimbursements are mailed via Canada Post, it is recommended that depositors verify possible mailing delays with their post office.
CDIC would reimburse insured deposits up to $100,000 (including interest) per insurance category.
In the event of a failure, do I need to file a claim with CDIC to get my money?
There is no need to file a claim. If your deposits are insured, CDIC will pay you automatically in the event your financial institution is closed.
What is a member institution failure?
A member institution failure occurs when the Office of the Superintendent of Financial Institutions (OSFI) determines that it is no longer viable and requires resolution by CDIC.
For depositors
Deposits held in one name
How is my business account(s) covered?
For the purposes of deposit insurance, a depositor may be an individual, an association of persons, a partnership, a corporation or a government entity. Eligible deposits in business accounts may be insurable separately from eligible deposits in individual accounts. “Sole proprietorships” do not benefit from separate deposit protection, as they are not separate legal entities. As a result, deposits in the individual’s name will be combined with the “sole proprietor’s” personal deposits. This video provides useful information about deposit insurance coverage for businesses.
How long will it take CDIC to make a payment on my insured deposits?
CDIC’s goal is to ensure depositors receive their money as quickly as possible. This process is automatic, and depositors do not have to file a claim. Cheques will start to be mailed out in the days following the failed member’s closure. Delivery times may vary.
Are High Interest Savings Accounts (HISA) insured?
CDIC determines the eligibility of High Interest Savings Accounts on a case-by-case basis.
Registered deposits
Will I continue to receive my monthly RRIF payments?
Questions with regard to monthly RRIF payments should be directed to the court appointed liquidator.
How do you calculate insurance on a spousal RRSP?
Deposit insurance on spousal RRSP’s is calculated based on the named owner of the RRSP and not the individual who made the deposit and received the tax receipt (i.e. the contributor).
Are there tax consequences to the reimbursement of insured deposits in my RRSP / RRIF / RESP / RDSP / TFSA / FHSA?
Insured deposits held in registered plans such as RRSP, RRIF, RESP, RDSP, TFSA and FHSA will be held temporarily while CDIC works with the Canada Revenue Agency to ensure they remain tax-sheltered. CDIC will communicate directly with these depositors to inform them of next steps.
What are my coverage limits for my RRSP / RRIF / RESP / RDSP / TFSA / FHSA?
CDIC insures eligible deposits up to a maximum of $100,000 (principal and interest combined) per depositor per insured category. RRSP, RRIF, RESP, RDSP, TFSA and FHSA are each considered separate insurance categories.
CDIC does not insure mutual funds, stocks, bonds, or ETFs. These financial products may be protected under different regimes.
Are all products in my RRSP / RRIF / RESP / RDSP / TFSA / FHSA covered by CDIC?
Eligible products include savings and chequing accounts, GICs or other term deposits, money orders, certified cheques, and bank drafts issued by CDIC members are protected by CDIC.
CDIC does not insure mutual funds, stocks, bonds, or ETFs. These financial products may be protected under different regimes.
Term deposits
Since I do not have any specified interest on my index-linked GIC, how will you calculate my interest?
Interest will be calculated according to the deposit contract (interest rate) with the bank and accrued up to the date the bank closed.
Can I transfer my non-registered (savings, chequing, GICs) deposits directly to another bank instead of waiting for a cheque in the mail?
No. Payments are mailed to depositors automatically.
What happens to my GIC?
GICs are eligible for CDIC coverage. These will be cashed out immediately, regardless of the length of time left in the term, and paid out, including any interest owing, up to the CDIC maximum of $100,000. Early redemption fees will not be charged.
Interest on eligible deposits, accrued and payable up to the date of the bank’s closure, will be calculated according to the deposit contract with the closed institution. Interest will be combined with the principal in calculating insurance payouts, up to a maximum of $100,000 per depositor, per insured category.
Mortgage / bill payments
What will happen to my loan/line of credit?
You will need to make credit arrangements with another financial institution. Regarding repayment of any debts owed to the failed member, you will need to make arrangements with the court-appointed liquidator.
What will happen to all my automatic withdrawals / payment / bills / payroll / pension coming in and out of my account at the failed member?
As the failed member has closed, no transactions will be processed. You need to open an account at a new financial institution and make the necessary changes to redirect all these items to the new account.
If I am unable to make any bill or mortgage payments because my bank account at the failed member no longer works. What do I do?
In order to process your future bill and mortgage payments CDIC recommends you do two things:
Open a new bank account at a new institution and ensure your income is being paid there going forward; and
Call your creditors and explain these unusual circumstances.
My mortgage is held at the failed member and payment is due at the end of the month. Do I still need to pay it?
Yes, the court-appointed liquidator will continue to process payments throughout the liquidation of the failed member. You must continue to make your payments at the same time as you have in the past. You will be kept fully informed of any changes by the court-appointed liquidator.
Joint deposits
I have a joint deposit with my spouse, and I also have a joint deposit which was made on my behalf in trust by my broker. Are they each covered up to $100,000?
Yes, deposits made in trust by your broker are in a separate deposit insurance category regardless of their joint nature. Your deposits would therefore be covered by two separate categories – one under the joint deposit insurance category and the other the trust category.
I have multiple joint accounts with different people (my spouse, children, grandchildren), are they each covered up to $100,000?
Yes, joint deposits (in the names of two or more people) are insured separately from the owners’ eligible deposits held in other insured categories, such as those held in their individual names. Each eligible joint deposit is protected for up to $100,000 per set of joint owners, regardless of the number of people who own the deposit.
How does a deposit qualify as a joint deposit?
To be eligible for separate coverage as a joint deposit, the following information must appear on the records of the CDIC member institution holding the funds:
A statement that the deposit is owned jointly;
The name and address of each of the joint owners.
What is the payment procedure for joint deposits?
Payment of joint deposits will be made according to the registration of the account. Deposit insurance is payable per set of joint owners; that is, the joint owners together receive a single payment of up to $100,000.
How does CDIC insurance apply to joint deposits?
Joint deposits (in the names of two or more people) are insured separately from the owners’ eligible deposits held in other insured categories, such as those held in their individual names. Each eligible joint deposit is protected for up to $100,000 per set of joint owners, regardless of the number of people who own the deposit.
For brokers and other financial professionals
What is a brokered deposit?
A brokered deposit is a deposit made by a broker or investment dealer at a CDIC member institution for one or more of their clients. There are two types of brokered deposits, and the reimbursement process will vary by deposit type:
Deposits made in-nominee-name (nominee brokered deposits): Brokers place the deposit and hold it as a nominee (i.e., in trust) on behalf of their clients.
Deposits made in-client-name: Brokers place the deposit directly in the name of their clients.
What if my client has more than $100,000 in nominee brokered deposits held at a failed institution?
CDIC protects eligible nominee brokered deposits held at a member institution to a maximum of $100,000 per deposit category per beneficiary. Depositors with deposits above the $100,000 limit can file a claim for unprotected balances with the court-appointed liquidator.
As a nominee broker, where can I find the Nominee Broker Data Requirements (NBDR)?
I am a client of a broker who placed my money at a failed member. My broker has told me to call CDIC. How do I get my money back?
CDIC will calculate deposit insurance coverage based on the insurance categories within which brokers placed the deposits. How you get your money back will depend on how your broker placed the deposit.
If your broker placed your deposits in your name, then CDIC will reimburse you directly using the information in the failed member’s records.
If your broker placed your deposits in their name, then the broker is acting as a trustee on your behalf. In this instance, CDIC makes payments directly to your broker who will in turn contact you about next steps for handling your funds.
Please contact your broker if you have specific questions about your brokered deposits.
As a nominee broker, how many days do I have to provide client/beneficiary information to CDIC?
Nominee brokers must provide beneficiary information to CDIC within three (3) business days following CDIC’s request of the required information.
CDIC will reach out to the designated Senior Officers of brokerage firms to communicate file transmission instructions and to coordinate the insurance payout process.
I am a broker/agent for a brokerage firm. What can I do to accelerate the payment process for my clients?
For reasons of privacy and confidentiality, CDIC can only discuss deposit insurance payments with the designated brokerage contact provided to CDIC. CDIC is prohibited from sharing any information with individual brokers, broker agents or directly with the clients of the firm.
CDIC handles the nominee broker reimbursement process directly with the brokerage firm’s management. Any questions individual brokers or agents might have should be raised with their firm. CDIC will advise on timeframes for reimbursement of in-nominee-name deposits with brokerage firms.
For deposits that brokers may have placed with the failed member in their clients’ name, CDIC will reimburse the funds directly to the client in whose name the insured deposit has been made.
How long will it take for CDIC to pay nominee brokered insured deposits?
Nominee brokers are required to provide updated beneficiary information within three (3) business days upon request by CDIC. After receiving beneficiary information from the nominee broker, CDIC expects to pay nominee brokered deposits, as soon as possible, and in most cases, it will be within days. However, if the nominee broker submits incomplete beneficiary information, then the payments could be delayed.
How will CDIC provide insurance payments for in-nominee name brokered deposits?
CDIC will calculate the applicable deposit insurance coverage based on the insurance categories within which brokers placed the deposits. CDIC will communicate with nominee brokers to inform them of the process and timelines to reimburse insured deposits. The insurance payments are based on the information collected by CDIC from the failed member and the affected nominee broker. In this instance, CDIC will only provide payment to the affected brokerage firms and will communicate the expected timeframes for receipt of the insurance payment and accompanying statement to those brokers. Each firm is responsible for distributing the reimbursement of insured deposits to their client/beneficiaries.
How will CDIC provide insurance payments for in-client name brokered deposits?
CDIC will calculate deposit insurance coverage based on the insurance categories within which brokers placed the deposits. In this instance, CDIC will provide payment directly to the client and not the broker.
How are nominee brokered deposits protected by CDIC?
Eligible deposits held by brokers as a nominee (i.e., in nominee-name) for their clients are treated by CDIC as deposits held in trust. The nominee broker is the trustee depositor on record at the member institution, and their clients are the beneficiaries.
Coverage is extended to nominee brokered deposits under the trust deposit insurance category for up to $100,000 per beneficiary, provided that nominee brokers meet key disclosure requirements.
If the nominee brokered deposits are placed under another CDIC insured category (e.g., RRSP, RESP, RRIF, RDSP, FHSA or TFSA) then these deposits can receive separate CDIC insurance coverage of up to $100,000. For more information on how CDIC protects eligible deposits at each of our Member Institutions, please visit What’s covered.
For professional trustees
How long will it take for CDIC to pay professional trustee deposits?
The timing will depend on when professional trustees can provide the required beneficiary information to CDIC.
Professional trustees are required to provide beneficiary information, in accordance with the Professional Trustee Data Requirements (PTDR) to CDIC upon request. CDIC cannot make funds available to professional trustees unless the required data has been provided in relation to the deposits held at the failed member.
After the beneficiary information is received and validated, CDIC will begin to reimburse insured deposits.
I am a client of a professional trustee who placed my money at a failed member. The professional trustee has told me to call CDIC. How do I get my money back?
For reasons of confidentiality, CDIC is prohibited from sharing any deposit information with individual clients of professional trustees during the reimbursement process.
CDIC will calculate coverage based on the insurance categories within which your professional trustee placed the deposits. Once an insurance determination has been made, CDIC will provide payments directly to your professional trustee.
What if my client/beneficiary has more than $100,000 in deposits in a designated professional trustee account held at a failed institution?
CDIC protects eligible deposits made by a professional trustee at a member institution to a maximum of $100,000 per deposit category per beneficiary. Depositors with deposits above the $100,000 limit can file a claim for unprotected balances with the court-appointed Liquidator.
How many days do professional trustees have to provide client/beneficiary information to CDIC?
For professional trustees, there is no mandatory timeframe for submitting beneficiary information. However, CDIC cannot make funds available to professional trustees unless we have complete information about deposits held at the failed member. To expedite reimbursement, we recommend submitting the required beneficiary information as soon as possible once CDIC has made the request of you.
As a professional trustee, can I request that the payment be directed to a beneficiary or client?
No. For reasons of privacy & confidentiality, CDIC will only deal with the professional trustee, who is the depositor of record at the failed member. Deposit insurance payments will be provided directly to the professional trustee, who is responsible for distributing any reimbursements to their client/beneficiaries.
How will CDIC provide insurance payments for deposits placed by professional trustees?
Reimbursements are made directly to the professional trustees usually through wire transfer or cheque. CDIC does not provide payments directly to clients or beneficiaries of professional trustees and the latter are responsible for disbursing payment to their clients.
I am a professional trustee who has placed deposits at a member institution. Will CDIC contact me regarding my clients’ deposits?
Yes, if your accounts have been identified on the records of the member institution as a designated Professional Trustee Account (PTA), CDIC will use the member’s records to contact you about the reimbursement processes.
What’s the reimbursement process for deposits held by professional trustees?
CDIC will contact all professional trustees impacted by the closure of a failed member to inform them of the process and timelines to reimburse insured deposits.
CDIC will use the contact information on the records of the failed member to contact professional trustees.
The insurance payments are based on CDIC calculations using deposit information collected from the failed member and beneficiary (or other) information provided by the professional trustees.
In this instance, reimbursement is made directly to professional trustees, usually by cheque or wire transfer. CDIC does not provide payments directly to clients or beneficiaries of professional trustees and the latter are responsible for disbursing payment to their clients.
How are professional trustee deposits protected by CDIC?
Deposits held by a professional trustee on behalf of their clients or other beneficiaries are treated by CDIC as deposits held in trust. The professional trustee is the depositor on record for the member institution and their clients are the beneficiaries.
Eligible deposits in professional trustee accounts under the trust deposit insurance category receive coverage of up to $100,000 per beneficiary. Similarly, if they are placed under another category (e.g., RRSP, RESP, RRIF, RDSP, FHSA or TFSA) then they can receive separate coverage of up to $100,000.
For general trustees
I am a beneficiary with a general trustee. Will I get reimbursed by CDIC or by the trustee?
If you have deposits held in trust at the failed member, CDIC will reimburse the trustee directly.
I am a general trustee who has placed deposits at a failed member. Will CDIC contact me regarding my deposits?
No. If you provided the required beneficiary information to the member prior to its failure, CDIC will have the necessary information to automatically calculate and reimburse you for eligible deposits up to $100,000 per beneficiary.
CDIC will issue any deposit insurance payments directly to you as the trustee of record, on behalf of the beneficiaries named on the account.
As a general trustee, am I required to provide beneficiary information to CDIC when a member institution has failed?
No. At the time of failure, a trustee that is neither a nominee broker nor a professional trustee, does not need to provide CDIC with any beneficiary information.
CDIC will calculate deposit insurance based on the deposit and beneficiary information on the records of the failed member. The amount based on this calculation will be sent to you as the trustee for the deposit, on behalf of the beneficiaries.
How does CDIC calculate the insurance payment for general trustees?
CDIC uses the information on the records of the failed member to calculate coverage.
Trust deposits are protected up to $100,000, and this protection can extend to each beneficiary named in a trust, provided the trustee has maintained the required beneficiary information on the records at the failed member.
How are deposits held in trust protected by CDIC?
Deposits heldin trust are considered a separate insurance category. CDIC insures these deposits up to $100,000, and this protection can extend to each beneficiary named in a trust, provided the trustee has maintained the required beneficiary information on the records at the failed member
Resolution
Assisted transaction
What happens to my CDIC deposit protection if my bank is purchased by another bank, but they remain separate CDIC member institutions?
CDIC member institutions can be bought and sold, just like any other business. Regardless of the transaction details, CDIC’s deposit protection continues to apply to pre-existing deposits made prior to the change.
If my bank is purchased by a non-member, do I lose my CDIC protection?
If a CDIC member is purchased by a non-member company, the buyer must agree to continue its deposit-taking services. The new entity would be a CDIC member and deposit protection continues as before.
If my bank is purchased and merged with another CDIC member, do I get separate CDIC protection?
Pre-existing deposits continue to be insured up to $100,000 in each of the separately protected categories.
Term deposits: separate protection applies until they mature or until the money is withdrawn, whichever comes first.
Demand deposits (e.g., deposits in chequing accounts): separate protection remains until the money is withdrawn.
Any additional eligible deposits made after the merger will be added to those existing deposits, and the total will be insured to a maximum of $100,000.
If my bank is sold, do I need to anything?
No. Your financial institution will contact you to explain changes brought by the transaction. It will not affect access to your money or financial services.
What happens to my CDIC deposit protection if my bank is purchased by another bank, but they remain separate CDIC member institutions?
CDIC member institutions can be bought and sold, just like any other business. Regardless of the transaction details, CDIC’s deposit protection continues to apply to pre-existing deposits made prior to the change.
Will I lose access to my accounts during a forced sale or FIRP scenario?
No. The bank remains open for business. You continue to have full access to your deposits and benefit from CDIC’s deposit protection. You also continue to have access to regular banking services.
What happens to the bank’s shareholders and creditors while CDIC is in control?
The bank’s shares and subordinated debt will be vested in CDIC, which becomes the sole shareholder.
The CDICAct has a safeguard for shareholders and creditors. The Act is used to determine the amount of compensation, if any, to be paid to shareholders, who might be in a worse financial position than they would have been had the institution been liquidated.
If my bank is purchased by a non-member, do I lose my CDIC protection?
If a CDIC member is purchased by a non-member company, the buyer must agree to continue its deposit-taking services. The new entity would be a CDIC member and deposit protection continues as before.
If my bank is purchased and merged with another CDIC member, do I get separate CDIC protection?
Pre-existing deposits continue to be insured up to $100,000 in each of the separately protected categories.
Term deposits: separate protection applies until they mature or until the money is withdrawn, whichever comes first.
Demand deposits (e.g., deposits in chequing accounts): separate protection remains until the money is withdrawn.
Any additional eligible deposits made after the merger will be added to those existing deposits, and the total will be insured to a maximum of $100,000.
Bridge bank
How long will CDIC “own” the bank?
The objective is to return the institution to private ownership at the earliest opportunity.
Who will run the bridge bank?
A bridge bank will be run much like any bank, by a board of directors and an executive team chosen for their ability to lead the bridge bank through restructuring and back to the private sector. Executives and directors may be drawn from the bank itself or its own succession planning, as well as from CDIC’s stand-by executive roster, consisting of highly experienced financial sector leaders who stand ready to take on a challenging role and support the stability of the financial system in Canada.
How will I access my money or my financial services?
CDIC will transfer all insured deposits to the bridge bank and may also transfer uninsured deposits and other assets to ensure the new bridge bank is viable and continues to provide financial services to its customers. CDIC’s deposit protection remains in place.
You will have full access to ATM networks and online banking, and will have access to financial services. You do not have to do anything— you will be contacted by the bridge bank with an update.
What will happen to my mortgage, credit cards, mutual funds, etc.?
There are no changes to mortgages. You may continue to make your regular payments. Regular services for other financial products and services will continue to be provided by the bridge bank. You do not have to do anything—the bridge bank will contact you directly if there are any changes that affect you.
Large banks
What happens to shareholders and creditors of the bank?
The bail-in resolution tool protects depositors by ensuring losses are imposed on certain creditors and shareholders. If creditors and shareholders are worse off as a result of a resolution implemented by CDIC than they would have been in a liquidation of the entire bank, CDIC is obligated to provide compensation to these parties.
If a mortgage renewal is already in process and the mortgage has been preapproved, the process will follow its normal course.
What will happen to my mortgage?
There will be no changes to your mortgage. You continue to be responsible for making your regular payment.
Will my deposits be used to recapitalize the bank?
No. Deposits are not affected by the bail-in process. You continue to have full access to your money and financial services.
I am a customer of one of Canada’s big banks. What do I have to do if it fails?
Canada’s six largest banks are considered domestic systemically important banks or D-SIBs. CDIC’s resolution tools ensure that D-SIBs remain open and continue to provide regular banking services while being resolved. You continue to have access to your money. Financial products, such as loans, mortgages and lines of credit continue to be offered.
Bail-in
I bank at a smaller member institution with only a few hundred customers. Would bail-in be used at my bank?
No. Bail-in would only be used to resolve Canada’s largest banks (D-SIBs).
If my deposits are protected and will not be used to bail out a large bank, what money is used during a bail-in situation?
I have money in a chequing and a savings account. Would CDIC use any of these personal deposits to fund a bail-in conversion?
No. Deposits in chequing and saving accounts are excluded from bail-in. This means that deposits in chequing accounts, savings accounts and term deposits such as GICs would remain protected by CDIC. The bail-in regime would have no impact on deposit insurance provided by CDIC.
In addition, the bail-in regime gives CDIC a resolution tool to keep a domestic systemically important bank (D-SIB) open and operating, which would allow it to continue to serve its customers.
What is bail-in?
Bail-in is a resolution tool that CDIC can use to convert some of a failing domestic systemically important bank’s (D-SIB) debt into common shares in order to recapitalize the bank and allow it to remain open and operating. The bank’s debt does not include deposits. This means that money in a savings or chequing account, or a term deposit such as a GIC, is protected and covered by CDIC deposit insurance and will not be used in a bail-in situation.
Bail-in gives CDIC an additional tool to deal with the unlikely failure of a major bank in a manner that preserves financial stability, reduces taxpayer exposure, increases market discipline and reduces incentives for D-SIBs to take excessive risks.
At a high-level, the process would involve CDIC taking temporary control or ownership of the non-viable bank, executing a bail-in conversion to recapitalize the bank, and undertaking any other restructuring measures necessary to restore the bank to viability.
After the completion of the bail-in conversion and other steps required to restore the bank back to viability, CDIC would return the bank to private control.
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