Deposits held in a RESP

Deposits held in a Registered Education Savings Plan (RESP) 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 RESP 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 RESP, the above GIC and term deposit are eligible deposits 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 RESP category is 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 RESPs 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:

  • $25,000

    in a GIC held in an RESP for Child 1

  • $20,000

    in a term deposit held in an RESP for Child 2

  • $105,000

    in a term deposit held in an RESP for Child 3

Total

$150,000

Protected by CDIC

$145,000

You will receive coverage for the full amount ($25,000) held in the RESP for Child 1, because the amount is within the $100,000 coverage limit. You will receive coverage for the full amount ($20,000) held in the RESP for Child 2, because the amount is within the $100,000 coverage limit. You will receive coverage for $100,000 of the $105,000 held in the RESP for Child 3.

Have more questions about how CDIC deposit protection works?

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