Canada Deposit Insurance Corporation (CDIC): Protecting Your Deposits


Coast Capital Savings Federal Credit Union is a proud member of the Canada Deposit Insurance Corporation (CDIC). 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 protects eligible deposits to a maximum of $100,000 per depositor and per eligible deposit category.

Coverage is free and automatic – members of Coast Capital Savings Federal Credit Union do not have to apply for it. In the event of a failure of a member institution, CDIC would reimburse eligible deposits (including interest) up to $100,000 per deposit category.

Coast Capital Savings Federal Credit Union operates under the trade name Coast Capital Savings.

To be eligible for deposit insurance, a deposit must be:
  • Payable in Canada
  • In Canadian currency
  • Have a term of 5 years or less
Examples of eligible deposits include:
  • Savings accounts
  • Chequing accounts
  • Term deposits (with original terms to maturity of 5 years or less)
For more information about CDIC:

Maximizing Coverage

Did you know that you can get more than $100,000 in deposit insurance coverage from CDIC?

In the example below, Joe has obtained up to $300,000 of coverage for his eligible deposits by adding funds to non-registered accounts, RRSPs, and TFSAs, all which count as separate eligible deposit categories which have their own $100,000 maximum coverage amount.

Name Registration
Deposit Balance
Joe Coast Capital Savings Account $80,000
Joe Coast Capital Chequing Account $20,000
Joe Coast Capital RRSP $100,000
Joe Coast Capital TFSA $100,000

Total Deposits  $300,000

Total Deposits Insured by CDIC $300,000

In another example, John and Jane have obtained $300,000 of coverage each individually for their eligible deposits by adding funds to non-registered accounts, RRSPs, and TFSAs. They have also obtained an additional $100,000 of coverage by placing funds in a joint account, which is an additional eligible deposit category with its own $100,000 maximum coverage amount.
 
Name Registration Deposits Balance
John Coast Capital Savings Account $92,000
John Coast Capital Chequing Account $8,000
John Coast Capital RRSP $100,000
John  Coast Capital TFSA $100,000
Jane Coast Capital Chequing Account $100,000
Jane Coast Capital RRSP $100,000
Jane  Coast Capital TFSA $100,000
John & Jane Coast Capital Joint Savings Account $100,000

Total Deposits $700,000

Total Deposits Insured by CDIC $700,000

Contact us to find out how you can maximize your deposit insurance coverage.


FAQ

What is the Canada Deposit Insurance Corporation (CDIC)?
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.

Why would I need deposit insurance?
In the event of a failure of a member institution, CDIC would reimburse eligible deposits (including interest) up to $100,000 per deposit category. However, there have never been any claims against deposit insurance relating to deposits held with Coast Capital Savings. 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).

Can I get more than $100,000 of deposit insurance coverage?
Yes, you can get more than $100,000 in coverage from CDIC. 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.

What’s eligible for CDIC coverage?
CDIC provides deposit insurance for eligible deposits made in Canadian funds and 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 Held for Paying Realty Taxes on Mortgaged Property
What’s not eligible for CDIC coverage?
CDIC does not provide coverage for:
  • membership shares issued by a federal credit union
  • any shares issued by a federal credit union
  • GIC and other term deposits that are repayable only after a period of greater than five years 
  • deposits in foreign currencies and deposits that are payable outside Canada
  • 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
What’s the difference between CDIC coverage and Credit Union Deposit Insurance Corporation Coverage (CUDIC) coverage?
Prior to becoming a federal credit union on November 1, 2018, deposits held with Coast Capital Savings were insured by CUDIC. Since becoming a federal credit union on November 1, 2018, deposits held with Coast Capital Savings are insured by CDIC. Under CUDIC, eligible deposits held with Coast Capital Savings were insured to an unlimited amount. Under CDIC, coverage is limited to $100,000 per depositor per deposit category.

Are balances I held before November 1, 2018 covered by CDIC or CUDIC?
As of November 1, 2018 all eligible pre-existing deposits and any new eligible deposits with Coast Capital Savings are protected by CDIC. CDIC provides transitional coverage for eligible pre-existing deposits as outlined in our Statement of Transitional Coverage.