What Is CDIC?
Canada Deposit Insurance Corporation
| Aspect |
Details |
| What CDIC does |
Insures deposits at member banks |
| Coverage if bank fails |
Get money back |
| Maximum per category |
$100,000 |
| Cost to you |
Free (banks pay) |
| Speed of payout |
Usually days after failure |
Coverage Amount
| Category |
Limit |
| Per depositor |
$100,000 |
| Per category |
$100,000 each |
| Per institution |
Applies independently |
Separate CDIC Categories
The 7 Categories
| Category |
Coverage |
Example |
| In your name |
$100,000 |
Savings, chequing |
| Joint deposit |
$100,000 |
Joint account |
| TFSA |
$100,000 |
Tax-free savings |
| RRSP |
$100,000 |
Retirement savings |
| RRIF |
$100,000 |
Retirement income |
| FHSA |
$100,000 |
First home savings |
| RESP (per bene) |
$100,000 |
Education savings |
Maximum Coverage Example
| Account |
Balance |
Covered? |
| Personal chequing |
$50,000 |
✅ Yes |
| Personal savings |
$50,000 |
✅ Yes (same category) |
| Joint savings |
$100,000 |
✅ Yes (separate) |
| TFSA |
$100,000 |
✅ Yes (separate) |
| RRSP |
$100,000 |
✅ Yes (separate) |
| FHSA |
$100,000 |
✅ Yes (separate) |
| Total insured |
$500,000 |
One bank! |
What Is Covered
Eligible Deposits
| Product |
Covered? |
| Savings accounts |
✅ Yes |
| Chequing accounts |
✅ Yes |
| GICs (≤5 years) |
✅ Yes |
| Term deposits (≤5 years) |
✅ Yes |
| Money orders/drafts |
✅ Yes |
| Debentures (CDIC member) |
✅ Yes |
NOT Covered
| Product |
Covered? |
| GICs over 5 years |
❌ No |
| Stocks |
❌ No |
| Bonds |
❌ No |
| Mutual funds |
❌ No |
| ETFs |
❌ No |
| Foreign currency |
❌ No |
| Cryptocurrency |
❌ No |
| Digital wallets |
❌ Usually no |
CDIC Member Banks
Major Banks (All CDIC Members)
| Bank |
CDIC Member |
| TD |
✅ Yes |
| RBC |
✅ Yes |
| BMO |
✅ Yes |
| Scotiabank |
✅ Yes |
| CIBC |
✅ Yes |
| National Bank |
✅ Yes |
Online Banks
| Bank |
CDIC Member |
| EQ Bank |
✅ Yes |
| Tangerine |
✅ Yes |
| Simplii |
✅ Yes |
| Manulife Bank |
✅ Yes |
| Wealthsimple |
❌ No (not a bank) |
Not CDIC Members
| Institution |
Coverage Instead |
| Credit unions |
Provincial insurance |
| Foreign banks (some) |
May not have coverage |
| Fintechs |
Varies - check carefully |
Provincial Deposit Insurance
Credit Union Coverage
| Province |
Insurance Corp |
Coverage |
| BC |
CUDIC |
$100,000 |
| Alberta |
CUDGC |
$100,000 |
| Saskatchewan |
CUDGC |
Unlimited |
| Manitoba |
DGCM |
Unlimited |
| Ontario |
FSRA |
$250,000 |
| Quebec |
AMF |
$100,000 |
Note: Unlimited coverage makes some provincial credit unions very attractive for large deposits.
Maximizing CDIC Coverage
Strategy 1: Use All Categories
| Category |
Amount |
| Personal |
$100,000 |
| TFSA |
$100,000 |
| RRSP |
$100,000 |
| Joint |
$100,000 |
| Total one bank |
$400,000+ |
Strategy 2: Multiple Institutions
| Institution |
Amount |
| Bank A |
$100,000 |
| Bank B |
$100,000 |
| Bank C |
$100,000 |
| Total |
$300,000 |
Each treated separately.
Strategy 3: Combine Both
| Bank A |
Amount |
Bank B |
Amount |
| Personal |
$100K |
Personal |
$100K |
| TFSA |
$100K |
TFSA |
$100K |
| RRSP |
$100K |
RRSP |
$100K |
| Joint |
$100K |
Joint |
$100K |
| Subtotal |
$400K |
Subtotal |
$400K |
|
|
Grand Total |
$800K |
Common Scenarios
High Net Worth GIC Ladder
| Problem |
Have $500,000 in GICs |
| One bank |
Only $100K covered |
| Solution |
Split across 5 banks |
| Or |
Split across categories |
Joint Account Coverage
| Question |
Answer |
| Joint account limit |
$100,000 total |
| Per person? |
No, per account |
| Example |
$100K joint = $100K covered |
| Note |
Plus each person’s individual coverage |
RESP Coverage
| Situation |
Coverage |
| Per beneficiary |
$100,000 each |
| 2 children RESP |
$200,000 total possible |
| Family RESP |
Split by beneficiary |
Checking CDIC Status
How to Verify
| Method |
Steps |
| CDIC website |
cdic.ca member list |
| Ask institution |
Confirm membership |
| Look for sign |
Must display CDIC logo |
CDIC Member Lookup
| Step |
Action |
| 1 |
Go to cdic.ca |
| 2 |
Find “Member List” |
| 3 |
Search institution name |
| 4 |
Confirm membership |
What Happens if a Bank Fails
CDIC Process
| Stage |
Timeline |
| Bank fails |
CDIC takes over |
| Assessment |
Determine deposits |
| Payout |
Usually within days |
| Method |
Cheque or transfer |
Historical Failures
| Event |
Result |
| 43 member failures |
Since 1967 |
| All depositors |
Paid in full (within limits) |
| Largest |
Canadian Commercial Bank (1985) |
| Recent |
Very rare |
CDIC vs CIPF
Different Protection
| Insurance |
Covers |
| CDIC |
Bank deposits |
| CIPF |
Investment accounts |
CIPF Coverage
| Product |
CIPF Coverage |
| Stocks |
✅ $1 million |
| Bonds |
✅ $1 million |
| Mutual funds |
✅ $1 million |
| Cash in brokerage |
✅ $1 million |
CIPF protects if brokerage fails, not investment losses.
Summary
Key Points
| Rule |
Details |
| Basic coverage |
$100,000 |
| Per category |
Separate limits |
| Check membership |
Not all institutions covered |
| Strategy |
Use categories + multiple banks |
| GICs over 5 years |
Not covered |
| Investments |
CIPF, not CDIC |