Deposits held in a FHSA
Deposits held in a First Home Savings Account (FHSA) are protected separately from the depositors’ eligible deposits held in other insured categories, such as those held in their individual names.
Here’s an example of a portfolio within an First Home Savings Account (FHSA) at one CDIC member institution – and what does (✓) and does not (✗) qualify for CDIC coverage:
Portfolio
- $20,000 in a GIC
- $90,000 in a term deposit
- $50,000 in stocks and bonds
- $130,000 in mutual funds
Total Portfolio
$290,000
Eligible Deposits
$110,000
Protected by CDIC
$100,000
What’s protected and why:
Within the insured category of FHSA, the above GIC and savings account are eligible deposit products and are therefore combined for coverage of up to $100,000 of CDIC protection. So, $100,000 of the eligible $110,000 within the FHSA category are protected.
CDIC coverage does not apply to stocks, bonds or mutual funds, so those investments, which amount to $180,000 of the total $290,000 in the category, are not eligible to be insured by CDIC.