Time To Brush Up On Canada Deposit Insurance Corporation (CDIC) Protection Facts
Given recent market volatility, taxpayers are concerned about the safety of their capital, and may wish to discuss what guarantees or insurance may be available to them for their money.
The Canada Deposit Insurance Corporation provides some comfort, insuring deposits of their member companies which include most Canadian chartered banks, loan companies and trust companies, as well as associations governed by the Cooperative Credit Association Act. Up to $100,000 of amounts on deposit will be insured in case of failure of the member institution.
However, deposits in credit unions and caisses populaires, Canadian branches of foreign banks and some Canadian chartered banks are not covered. Deposits with credit unions and caisses populaires may be covered by provincial deposit insurance programs. For a complete listing of institutions which are covered, see the CIDC web page.
The following types of deposits are covered by member institutions of the CDIC, in Canadian dollars:
Accounts and products NOT insured by CDIC include:
This is information all advisors should discuss with their clients about interest-bearing investments, in conjunction with devising a tax efficient investment income plan.
For more information on the new Knowledge Bureau Certificate Course entitled Tax Efficient Investment Income Planning available October 31.