BANKING CHOICE CANADA
How to check deposit protection in Canada
Understand the institution and category behind a deposit before relying on a coverage statement.
Start with the legal institution
A familiar product name or app is not enough to establish how a deposit is protected. Look for the legal institution that holds the deposit and check the applicable deposit insurer's information. A financial brand and the legal deposit-taking institution can have different names.
What CDIC covers
CDIC protects eligible deposits at its member institutions if a member institution fails. Coverage is up to $100,000, including principal and interest, in each separately insured category at each member institution. Eligibility, ownership arrangements and categories matter; the limit is not a separate allowance for every account.
Why two accounts do not necessarily double protection
Think about an illustrative situation where someone holds several eligible deposits in the same insured category at the same member institution. Those deposits must be considered together for that category's limit. Opening another account does not by itself create another category.
Three questions to answer
- Which legal institution holds the funds, and is it a member of the relevant insurer?
- Is the particular product an eligible deposit?
- Which ownership or registration category applies, and what other deposits do you have in that category at that institution?
If you cannot answer one of these, ask the provider for the deposit insurance information that applies to the account. For a brand sharing an institution with another brand, check whether balances are combined.
Protection is not an investment promise
Do not read deposit insurance as a guarantee of returns, a provider endorsement or protection against every kind of loss. CDIC is concerned with eligible deposits and member failure. Scams, unauthorized transactions and investment risks are different questions that require their own checks.
Credit unions and other arrangements
Not every Canadian financial institution uses CDIC. Provincial credit unions can be subject to different provincial protection systems. Do not apply CDIC's limit to another system without checking the relevant insurer. This guide does not calculate an individual's coverage.
Verify at the source
Use CDIC's official coverage information to confirm eligible products, categories and limits. Banking Choice Canada is not CDIC and does not certify an account's coverage.
Official reference: Read the source (external website, opens in a new tab) ↗
General educational information, not personalized financial advice. Illustrations are not offers.