Investor's wiki

Canadian Deposit Insurance Corporation (CDIC)

Canadian Deposit Insurance Corporation (CDIC)

What Is the Canadian Deposit Insurance Corporation (CDIC)?

The Canadian Deposit Insurance Corporation (CDIC) is an independent crown corporation laid out by the Canadian federal government. The CDIC was made by Parliament in 1967 to safeguard bank deposits of up to $100,000 per insured category for however long they are held in member Canadian banks. Insured categories incorporate checking and savings accounts, certain investments, and foreign currency accounts. The CDIC furnishes consumers with protection against losses if financial institutions fail.

Grasping the Canadian Deposit Insurance Corporation (CDIC)

The Canadian Deposit Insurance Corporation was framed by Parliament under the Financial Administration Act and Canada Deposit Insurance Corporation Act in 1967 to add to the stability of Canada's financial system. It furnishes consumers with insurance against the loss of deposits in the event of financial institution failure. A bank failure happens when a bank can't meet its financial obligations in light of insolvency or illiquidity.

The CDIC is like the Federal Deposit Insurance Corporation (FDIC) in the U.S. It is funded by premiums paid by member institutions. All things considered, it receives no public funds to operate. Canadians don't need to apply for coverage at CDIC member banks, nor do they need to file a claim on the off chance that there is a bank failure. CDIC insurance pays out members naturally if a member institution defaults.

The agency safeguards eligible deposits as well as interest inside the space of days that are held in member banks, including:

Financial products that aren't eligible for coverage incorporate mutual funds, money market funds, stocks, bonds, exchange-traded funds (ETFs), digital and cryptocurrencies, voyagers' checks, treasury bills, bankers' acknowledgments, principal-protected notes, debentures issued by banks, governments and corporations, and deposits held at non-member institutions.

CDIC member institutions must inform depositors when a product isn't eligible for insurance.

Special Considerations

Consumers ought to consider whether their financial institution is a member of the CDIC. Membership furnishes depositors with some insurance against losing their savings.

The CDIC's member institutions incorporate the country's biggest banks, including:

  • The Bank of Montreal (BMO)
  • The Canadian Imperial Bank of Commerce (CM)
  • The Bank of Nova Scotia (BNS)
  • Royal Bank of Canada (RY)
  • TD Canada Trust (TD)
  • National Bank of Canada (NA)

The CDIC likewise guarantees deposits at certain regional banks, for example, Canadian Western Bank, First Nations Banks, Laurentian Bank, and Valiant Trust Company. International banks with Canadian branches, like ICICI Bank and the Bank of China, as well as non-customary banks like PC Financial are additionally members.

Deposits at federal credit unions are covered under the CDIC. Those held at provincial credit unions are not covered. These institutions are covered by provincial deposit insurers. Money held in member institution branches outside Canada isn't covered. Deposits held at financial institutions outside Canada are not covered all things considered. So assuming you have an account at Bank of America in Florida, your money isn't protected under the CDIC. It very well might be covered by the FDIC.


The number of financial institution failures in Canada somewhere in the range of 1967 and 1996, influencing multiple million depositors. These institutions were CDIC members.

Illustration of Canadian Deposit Insurance Corporation Coverage

CDIC coverage might appear to be somewhat irritating, especially in the event that you have various deposits in various accounts across a wide range of institutions. Suppose you have the accompanying accounts:

  • Checking account at CIBC: $12,000
  • Joint checking account with your spouse at Scotiabank: $5,000
  • Savings account at TD Canada Trust: $25,000
  • Emergency fund at Ontario Provincial Police Association Credit Union: $3,000
  • TFSA at PC Financial: $75,000
  • RRSP at BMO: $135,000
  • Mutual fund account at National Bank: $55,000

Utilizing the rundown above, we can determine that you are covered for the accompanying under the CDIC:

  • Checking account at CIBC: $12,000
  • Joint checking account with your spouse at Scotiabank: $5,000
  • Savings account at TD Canada Trust: $25,000
  • Tax-free savings account at PC Financial: $75,000
  • RRSP at BMO: $100,000

Your emergency fund at the OPP Association Credit Union isn't covered by the CDIC in light of the fact that it falls under the provincial deposit insurer in Ontario. Your mutual fund account and the excess balance in your RRSP aren't covered by the same token. Note that in the event that you had $200,000 in your joint account with your spouse, the agency would cover $100,000 for every one of you.


  • The Canadian Deposit Insurance Corporation is an independent crown corporation that gives deposit insurance to consumer deposits at member institutions.
  • The CDIC doesn't cover mutual funds, ETFs, money market funds, digital currencies, cryptocurrencies, or treasury bills.
  • The agency was laid out by Parliament in 1967.
  • Deposits are covered up to $100,000 per depositor in certain categories, including checking and savings accounts, certain investments, foreign currency accounts in Canada, registered retirement accounts, and other registered products.
  • Member institutions incorporate the major national banks, federal credit unions, Canadian parts of certain international banks, and non-conventional banks.