Updated: April 2025  |  bremo.io financial guides

CDIC Deposit Insurance Explained — Is Your Money Safe at a Canadian Bank?

The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that protects eligible deposits at member institutions if a bank fails. Understanding how CDIC works — including what's covered, the coverage limits, and which accounts qualify — is essential for any Canadian who holds significant savings at a bank. This guide explains CDIC deposit insurance in plain language.

What Is CDIC?

CDIC was established in 1967 to protect Canadians from losing their deposits if a member financial institution fails. It is funded by premiums paid by member institutions — not by taxpayers. Since its establishment, CDIC has handled 43 member institution failures and returned over $26 billion in protected deposits to Canadians without any cost to the government.

CDIC membership is mandatory for all federally regulated banks and trust companies in Canada, including all Big 5 banks, Tangerine, Simplii Financial, EQ Bank, and dozens of other institutions. Provincial credit unions are NOT covered by CDIC — they have separate provincial deposit insurance schemes.

What Is Covered by CDIC?

CDIC protects eligible deposits at member institutions. Eligible deposits include:

• Deposits in chequing accounts
• Deposits in savings accounts
• GICs and term deposits with original terms of 5 years or less
• Debentures issued by loan companies that are CDIC members
• Eligible deposits in foreign currencies (since 2020)

Deposits must be held in Canadian dollars (or now certain foreign currencies for foreign currency accounts) at a CDIC member institution to be eligible.

What Is NOT Covered by CDIC?

Several types of investments are not eligible for CDIC protection:

• Mutual funds (even those sold at banks)
• Stocks and equities
• Bonds (other than CDIC member debentures)
• ETFs
• GICs with original terms over 5 years
• Cryptocurrency
• Deposits at credit unions (covered by provincial insurance instead)

CDIC Coverage Limits

CDIC covers up to $100,000 per depositor per insured category at each CDIC member institution. The categories are:

• Deposits in your name (individual accounts): $100,000
• Deposits in joint accounts: $100,000 per depositor's share
• Deposits in registered retirement savings (RRSP): $100,000
• Deposits in registered retirement income funds (RRIF): $100,000
• Deposits in registered education savings plans (RESP): $100,000
• Deposits in tax-free savings accounts (TFSA): $100,000
• Deposits in first home savings accounts (FHSA): $100,000
• Deposits held in trust: $100,000 per beneficiary

These categories are separate, so a single depositor could potentially have over $700,000 in CDIC-protected deposits at one institution by spreading funds across all eligible categories.

Coverage Across Multiple Institutions

CDIC coverage applies separately at each member institution. If you have $100,000 at RBC and $100,000 at TD, both amounts are fully protected — the limits are per institution, not per depositor across all banks. Canadians with very large deposits can spread funds across multiple CDIC member institutions to maximize protection.

Joint Accounts and CDIC

Joint accounts are covered separately from individual accounts. A joint account held by two people is covered up to $100,000 for that joint account — separate from each individual owner's $100,000 personal coverage. So a couple with $100,000 in individual accounts each plus $100,000 in a joint account has $300,000 in CDIC-covered deposits at one institution.

CDIC and Online Banks

Several Canadian online banks and fintechs are CDIC members, meaning your deposits there have the same protection as at a Big 5 bank:

• EQ Bank — CDIC member (through Equitable Bank)
• Tangerine — CDIC member (Scotiabank subsidiary)
• Simplii Financial — CDIC member (CIBC subsidiary)
• Oaken Financial — CDIC member (Home Trust/Home Bank)
• KOHO — deposits held through partner CDIC member institutions

Before depositing funds at any online bank, verify their CDIC membership on the official CDIC website. This is a few-second check that provides important peace of mind.

Credit Union Deposit Insurance

Credit unions are not CDIC members but have provincial deposit insurance. Coverage varies significantly by province:

• Ontario — DICO (Deposit Insurance Corporation of Ontario) — $250,000 per category
• BC — Credit Union Deposit Insurance Corporation of BC — unlimited coverage
• Alberta — Credit Union Deposit Guarantee Corporation — unlimited coverage
• Quebec — Mouvement Desjardins has its own protection fund

In some provinces, credit union deposit insurance actually provides MORE protection than CDIC's $100,000 limit — especially in BC and Alberta where coverage is unlimited.

Has CDIC Ever Been Used?

Yes. CDIC has handled 43 failures since 1967. The most significant was the failures of Crown Trust, Northland Bank, and Canadian Commercial Bank in the 1980s. In each case, eligible depositors received full compensation. No eligible depositor has ever lost a single dollar due to a CDIC member institution failure — this is CDIC's core achievement and the basis of public confidence in the Canadian banking system.

What You Should Do

For most Canadians with savings below $100,000 at any single institution, CDIC provides complete protection for eligible deposits. If you hold more than $100,000 in eligible deposits at one institution, consider either spreading deposits across multiple categories (RRSP, TFSA, individual account, joint account) or across multiple CDIC member institutions. Verify CDIC membership before depositing at any new bank or online banking platform. Remember that investment products (mutual funds, ETFs, stocks) are never covered by CDIC — separate protections apply through CIPF for investment accounts at registered dealers.