Advisors Back Higher Deposit Insurance, Question $150K Cap

Tax and financial professionals overwhelmingly support raising the Canada Deposit Insurance Corporation (CDIC) coverage limit, but many argue the proposed $150,000 per deposit category still falls short. In our recent KBR poll, 95% of respondents favoured an increase, yet most recommended either indexing to inflation or moving directly to $250,000 to better protect today’s depositors. The numbers speak for themselves: the vast majority of respondents favour stronger protection for depositors. But their comments also highlight deep concern about whether $150,000 is sufficient in today’s economic climate.

Poll Results

• Yes: 127 votes (94.78%)
• No: 7 votes (5.22%)

What Canadians Are Saying

Incremental Increases Could Work
Martin supported the move to $150,000 but suggested a staged approach. “Canada is not keeping up with inflation or its neighbour, the U.S., where FDIC coverage is $250,000,” he wrote. “However, it cannot afford to do more than 50% at once. Perhaps another one or two increases over a 5-year period would make sense.”

Coverage Should Track Inflation
Several respondents stressed that coverage should not be based on arbitrary round numbers, but tied to inflation and income growth. “Regardless of what the right number is, it really should reflect inflation and increases in income rather than an occasional bump,” argued Derek T.

$150,000 Isn’t Enough
A common theme was that $150,000 falls short of protecting depositors in an era of higher costs, larger incomes, and bigger balances.

• “Individual incomes and business revenues have significantly increased,” wrote Gaetan Ladouceur “The CDIC must accommodate and protect that.”
• Rachel P supported the increase but added: “It should be increasing on a yearly basis.”
• Stella Pearson noted that with bail-in provisions in effect, more protection is needed and suggested indexing coverage to inflation.

A Call for $250,000 Coverage
Some respondents were clear: $150,000 doesn’t go far enough. Rob Nelson (Aug. 7) reminded us of the history of CDIC coverage:

• 1967: $20,000
• 1983: $60,000
• 2005: $100,000
  “Twenty years later we are still at the same coverage level as in 2005,” he wrote. “Given inflation and the value of consumer assets, I recommend that the coverage goes to $250,000. There was a time when this was a staggering figure. Sadly, today it is not.”

A Growing Consensus

Despite differences on the right dollar figure, nearly all participants agree on one thing: the CDIC must modernize deposit insurance. With Canadians facing higher living costs, larger deposits, and growing uncertainty about financial stability, the sentiment is clear—$100,000 is outdated, and $150,000 may be only a starting point.

Thanks to those who participated. This month, weigh in on this question:

On Sept 2, Finance Minister Champagne mandated CRA to implement a 100-day plan to “strengthen services, improve access, and reduce delays.” That’s by December 11, 2025. Do you believe this approach will help?