CDIC Coverage: What Every Canadian Woman Should Know
As a woman, it’s important to me to know about my money and if my money, deposits, and savings would be covered in a bank failure. I have my personal RRSPs, TFSAs, and an RESP for Rowan, on top of my personal chequing and savings accounts. All of these deposits are covered by the CDIC.
You’re probably wondering what is the CDIC?
- The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that provides deposit insurance against the loss of eligible deposits at member institutions in the event of a bank failure. They were established in 1967, and have handled 43 bank failures!
- Eligible deposits are automatically covered to a limit of $100,000 per insured category at each CDIC member financial institution.
- Members include banks, federally regulated credit unions, as well as loan and trust companies, and associations governed by the Cooperative Credit Associations Act that take deposits.
- Coverage is free and automatic: you don’t have to apply for it. If there’s a failure and your deposits are insured, you won’t have to file a claim: they will pay you automatically.
- They are funded by premiums paid by their member institutions and do not receive public funds to operate.
- They are not a bank. They are not a private insurance company.
I probably have seen their logo above my bank’s ATM for years, never paying much attention until we went and started an RESP for Rowan. This past April, they are now covering RESPs, when I read the news I felt relieved knowing there was extra protection on her future.
It’s important to note that not all products that can be put in an RESP (or other coverage categories) are covered. Cash deposits, term deposits, and foreign currency deposits are covered. Find out if your bank or financial institution is one of their members on the CDIC website.
With all the new things I have to worry about after having a child, this was one I could take off my shoulders. I can now enjoy the small moments with Rowan knowing our accounts are protected up to $100,000.
Did you know about the CDIC before reading this?
This post was sponsored by the CDIC, all opinions are of my own.
