Deposits held in a RDSP
Deposits held in a Registered Disability Savings Plan (RDSP) are protected separately from the depositors’ eligible deposits held in other insured categories, such as those held in individual names.
Here’s an example of a portfolio within a RDSP 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 RDSP, the above GIC and term deposit are eligible deposit products and therefore are together covered for up to $100,000 of CDIC protection. So $100,000 of the eligible $110,000 within the RDSP 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.
Eligible deposits held in RDSPs are protected up to a coverage limit of $100,000 per beneficiary at each CDIC member institution.
For Example:
At one member institution you have:
-
$45,000
in a GIC held in an RDSP for Child 1
-
$105,000
in a term deposit held in another RDSP for Child 2
Total
$150,000
Protected by CDIC
$145,000
You will receive coverage for the full amount ($45,000) held in the RDSP for Child 1, because the amount is within the $100,000 coverage limit. You will receive coverage for $100,000 of the $105,000 held in the RDSP for Child 2.