Over time, you have probably heard about various financial institutions in Canada having problems or even going under. How do you find out what protections you have for savings or chequing account deposits in a bank, trust company or credit union?
You should be cautious about where you put your money. Many people assume that their deposit funds are safe and protected, and they may well be, up to a certain amount. With foreknowledge and proper planning, you can protect all of your deposit money. Here is an overview of deposit money protection in Canada and where you can get further information.
Deposits in a Canadian bank or trust company
These are protected by the Canada Deposit Insurance Corporation (CDIC), up to a certain amount. In Quebec, it is referred to as the Quebec Deposit Insurance Board. Funds are automatically insured for up to $60,000 for each separate account. If you have more than $60,000 deposited, you can divide your funds among several CDIC members who are separate financial institutions. Some banks and trust companies have subsidiaries that are separate CDIC members, resulting in a ceiling of $60,000 each. For information, brochures and confirmation that your deposits are covered, contact CDIC at 1-800-461-2342 (Canada only) or at (613)996-2081.
Deposits in a Canadian credit union
These are protected by a deposit insurance plan that is specific to each province. Each province can vary in its protection for savings or chequing deposits. Depending on the province, the protection could be from $60,000 up to unlimited protection–that is, 100 per cent. Contact a credit union in your province to enquire, or phone the CDIC number to obtain contact numbers for the credit union deposit insurance head office in your province. Ask your credit union for an informational brochure and protection confirmation.
