Prepaid cards

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.

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.

No, a credit balance on a prepaid gift or mall card is not eligible for deposit insurance.

For information on how CDIC protection applies to general-purpose reloadable prepaid cards, visit our Prepaid cards page.

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.

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.).

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.

CDIC protects eligible deposits held at member institutions in case one of those member institutions were to fail.

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.).