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You may have heard that your money and investments are CDIC-protected. But find out what that really means.
You may have seen ads for CDIC and wondered, “What is that gym locker padlock with a maple leaf?” Or maybe now, after reading this, you’ll see it everywhere. That’s a good thing, actually. Here’s why.
CDIC stands for Canada Deposit Insurance Corporation, a non-profit crown corporation that provides up to $100,000 in deposit insurance per depositor, per insured category, should your bank fail, as long as it’s a CDIC member financial institution. You don’t pay any premiums for this type of insurance—your bank does. Over 80 financial institutions are CDIC members.
These are examples of what CDIC insurance covers:
CDIC deposit insurance does not cover stocks, mutual funds, exchange-traded funds (ETFs), bonds, travellers’ cheques or cryptocurrency. (For investor protection in Canada, see our definition for the Canadian Investor Protection Fund, or CIPF.)
How can you find out if your bank’s a member of CDIC? You can check CDIC’s member list. You can also tell when you walk into your bank (if it has an actual bricks-and-mortar location) or visit it online. Member institutions must clearly show the CDIC badge at branches, on websites and in apps.
The good news is, thanks to CDIC, Canadians haven’t lost any money due to the closure of a bank since the crown corporation launched in 1967.
Example: “Jeanette is feeling good about where she holds her RRSP since it is a member institution of CDIC.”
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