Canada Deposit Insurance Corporation (CDIC): Protecting Your Deposits

CDIC is a federal crown corporation created by Parliament in 1967 to protect money on deposits in the event a member institution becomes insolvent. CDIC insures eligible deposits held by its member institutions, which include banks, federal credit unions, trust and loan companies, and retail associations.

In the event of a failure of a member institution, CDIC would reimburse eligible insured deposits (including interest). However, there have never been any claims against deposit insurance relating to deposits held with Coast Capital. We have robust risk management in place to ensure the adequacy of our liquidity to protect members’ deposits. As a federally regulated credit union, we comply with the liquidity and capital adequacy requirements set out by the Office of the Superintendent of Financial Institutions (OSFI).

Yes, you can get more than $100,000 in coverage from CDIC even after any transition period applicable to pre-existing deposits ends. For example, one person can obtain up to $300,000 of coverage for their eligible deposits by adding funds to non-registered accounts, RRSPs and TFSAs. If this person has a spouse, the spouse will have the same amount of coverage available separately for eligible deposits held solely in the spouse’s name. Additional coverage of up to $100,000 will be available if they place eligible deposits in a joint account. More coverage could be available depending on family circumstances and preferences. Contact us to find out more details.

CDIC provides deposit insurance for eligible deposits payable in Canada up to $100,000 per each of the following deposit categories:

• Deposits Held in One Name
• Deposits in More Than One Name (Joint Deposits)
• Deposits held in Trust
• Deposits in an RRSP
• Deposits in an RRIF
• Deposits in a TFSA
• Deposits in an RDSP
• Deposits in an RESP
• Deposits in an FHSA

CDIC does not provide coverage for:

• membership shares issued by a federal credit union
• any shares issued by a federal credit union
• debentures issued by a federal credit union
• shares issued by other corporations
• mutual funds
• bonds, notes, treasury bills, and debentures issued by governments or corporations
• money orders, certified cheques, traveller’s cheques, drafts, and prepaid letters of credit in respect of which a federal credit union is not primarily liable
• principal protected notes that are traded

Federally regulated credit unions are governed by and organized under the Canadian federal Bank Act and regulated by OSFI. Deposit insurance is provided by CDIC. This is the same regulatory framework that applies to Canada’s largest banks.

Canada’s financial system is regarded as one of the safest and strongest in the world. The federal regulatory framework and supervision play an important role in promoting and contributing to financial stability and public confidence and, in particular, supporting depositors to have confidence that their deposits are safe.

For the purposes of deposit insurance, a depositor may be an individual, an association of persons, a partnership, a corporation or a government entity. Eligible deposits in business accounts may be insurable separately from eligible deposits in individual accounts. Sole proprietorships do not benefit from separate deposit protection, as they are not separate legal entities. As a result, deposits in the individual’s name will be combined with the sole proprietor’s personal deposits for the purposes of determining deposit insurance coverage.

Yes. As of April 30, 2020, deposits in foreign currencies (such as USD) and term deposits with terms greater than five years are eligible for deposit insurance. Foreign currency deposits are eligible for coverage up to their Canadian currency equivalent of $100,000 CAD. Eligible foreign currency deposits will also be paid out in Canadian currency.

If a member had eligible deposits held with two or more of Coast Capital, Prospera and Sunshine Coast Financial on May 6, 2026 that remain on deposit with the combined federal credit union, these deposits, less any withdrawals, will be treated as separate deposits, each with separate coverage per category up to CDIC’s insurance limit for two (2) years following that date, in the case of demand deposits, and until maturity or cashing out, in the case of term deposits. After this period, a single $100,000 CDIC insurance limit per category per registration will apply across the combined federal credit union.

Yes. CDIC offers transitional coverage for eligible pre-existing term deposits previously held with Prospera and Sunshine Coast Financial prior to the merger on May 6, 2026. Eligible term deposits that members have with Prospera or Sunshine Coast Financial that are still outstanding will continue to have unlimited deposit insurance until the end of the term or until they are cashed out.

CDIC offers transitional coverage for eligible demand deposits (e.g. chequing and savings accounts) held with Prospera and Sunshine Coast Financial at the time of the merger (May 6, 2026). The transition period lasts for 180 days, during which CDIC protection applies to eligible deposits made before the transition.