When choosing a bank or financial institution it is important that you determine if your deposits are covered by deposit insurance. In North America government agencies are in place to protect deposits made in financial institutions that are members of the following corporations.
Federal Deposit Insurance Corporation (FDIC)
The Federal Deposit Insurance Corporation is an independent US government agency that protects your deposits for up to $250,000 per insured category at financial institutions that are FDIC members.
- Single Account - $250,000 USD in your name alone
- Certain Retirement Account - $250,000 USD per owner
- Joint Account - $250,000 USD per co-owner
- Revocable Trust Account - $250,000 USD for each unique beneficiary designated
- Irrevocable Trust Account - $250,000 USD for the trust
- Corporation, Partnership, or Unincorporated Association Account - $250,000 USD per corporation, partnership, or unicorporated Association
- Employee Benefit Plan Account - $250,000 for each plan participant
- Government Account - $250,000 per official custodian
Coverage is free and automatic. You do not have to sign up, but it is important that you keep your contact information up to date at your financial institutions.
Please use this link to determine if your financial institution is a member of FDIC
For more information please log on to fdic.gov or call 1-877-275-3342
Canadian Deposit Insurance Corporation (CDIC)
The Canadian Deposit Insurance Corporation is a federal Crown corporation that protects your deposits for up to $100,000 per insured category at financial institutions that are CDIC members.
What is Covered?
- Savings and chequing accounts
- Guaranteed Investment Certificates (GICs)
What Is Not Covered?
- Mutual Funds, Stocks, and Bonds
- Foreign Currency
In the unlikely event that a member of the CDIC fails, your deposits in savings accounts, chequing accounts, GICs or other term deposits of five years or less, will be protected up to $100,000 in each of the following categories.
- You - $100,000 in your name alone
- You and another - $100,000 joint total
- Your savings in trust - $100,000 for each beneficiary, includes RESPs
- Your tax free savings - $100,000 TFSA
- Your retirement savings - $100,000 RRSP
- Your retirement income - $100,000 RRIF
- Your property taxes - $100,000 for mortgaged properties
The above amounts equal your total protection in each CDIC member
Coverage is free and automatic. You do not have to sign up, but it is important that you keep your contact information up to date at your financial institutions.
Please use this link to determine if your financial institution is a member of CDIC
If your financial institution fails the CDIC will contact you. Insured funds will be reimbursed within days.
For more information please log on to cdic.ca or call 1-800-461-2342