What is CDIC and How Does It Protect Your Money?

What is CDIC?

The Canada Deposit Insurance Corporation (CDIC) is a federal crown corporation, established in 1967 to promote stability in the financial system. Today, it protects your savings in the unlikely event your bank fails – and continues to play an important role in keeping Canada’s financial system strong.

Deposit insurance explained

Deposit insurance is there to protect your money if your bank ever runs into serious trouble and can’t meet its financial obligations. As long as you’re banking with a CDIC member institution, your eligible deposits are automatically covered — you don’t need to apply or pay a fee. The protection is fully funded by the banks and other member institutions, not by you or other depositors.

Deposit insurance does not protect against losses due to fraud or theft.

CDIC member institutions

CDIC’s member institutions include Canada’s largest banks, certain regional banks, loans and trust companies, Canadian bank subsidiaries of large foreign banks and federal credit unions.

Deposits at provincial credit unions, however are not covered by CDIC.

A full list of member institutions can be found here on CDIC’s website.

How does CDIC work?

So how does CDIC actually protect your money? Here’s a rundown on coverage limits, the account types it covers and how to calculate your coverage.

Coverage limits

CDIC insures eligible deposits up to $100,000 per deposit category, at each member institution including principal and interest. This means your money is protected across different account types and different banks – it’s not necessarily limited to one lump sum.

Here’s how it works:

• The $100,000 limit includes both the principal and any interest earned, as of the date the institution fails

• Coverage applies separately across different deposit categories. These categories include deposits held:

  • In one name

  • In more than one name (i.e., joint deposits)

  • In a Registered Retirement Savings Plan (RRSP)

  • In a Registered Retirement Income Fund (RRIF)

  • In a Tax-Free Savings Account (TFSA)

  • In a Registered Disability Savings Plan (RDSP)

  • In a First Home Savings Account (FHSA)

  • In a Registered Education Savings Plan (RESP)

  • In trust

So, if you have $100,000 in a personal savings account and another $100,000 in a TFSA — both at the same CDIC member institution — your full $200,000 would be protected. At the same time, if you hold deposits at more than one CDIC member bank, your coverage is calculated separately at each one.

Accounts covered by CDIC

Here’s what CDIC covers at a glance:

What CDIC doesn’t cover

While CDIC offers important protection for many everyday savings and deposit accounts, it doesn’t cover everything. Investments, and losses from fraud or theft are a few examples that fall outside its coverage.

For more information, please read this section on what’s covered on CDIC’s website.

How to calculate your coverage

The CDIC deposit insurance calculator makes it easy to see how much coverage you have. Simply add the type of deposit(s) you have, where you bank and the amount of your deposit(s), and the calculator will provide an overview of your coverage.

You can add as many accounts as you want – the calculator will show you what’s covered and what’s not across all your accounts.

Try the calculator >

Common misconceptions about CDIC

There are a few misconceptions out there about what CDIC covers — and what it doesn’t. Let’s clear them up:

• “All financial institutions are covered by CDIC”

  Not quite. CDIC only insures eligible deposits at member institutions, which include most Canadian banks and some federally regulated credit unions, as well as trust and loan companies. 

  Provincial credit unions, meanwhile, are not covered by CDIC — they’re typically insured by provincial deposit insurers like Deposit Insurance Corporation of Ontario (DICO) in Ontario, Credit Union Deposit Insurance Corporation (CUDIC) of British Columbia, or Credit Union Deposit Guarantee Corporation (CUDGC) in Alberta.

• “CDIC protects me from fraud, theft or cybercrime”

  CDIC coverage only applies if your bank fails — not if your account is hacked or your money is stolen. For fraud protection, your bank’s security measures — or your own cyber safety practices — can help protect your money.

• “All of my accounts at one bank are insured up to $100,000 each”

  Not exactly. The $100,000 limit applies per deposit category, not per individual account. So, if you have several personal accounts (like a savings account and a chequing account) at the same bank, they’re combined under the “deposits held in one name” category and insured up to $100,000 total.

  However, if you have eligible deposits at multiple CDIC member institutions, the coverage applies separately at each one — so you could be insured for more than $100,000 total if your deposits are spread across different banks.

• “If I have a joint account, I’m covered for $100,000 and so is the other person on the account”

  Joint accounts are insured up to $100,000 total per account, not per person. The coverage is shared equally between joint owners.

• “Investments like mutual funds and stocks are covered”

  CDIC does not insure investments such as mutual funds, stocks, bonds, ETFs or cryptocurrency — even if they’re held at a CDIC member institution.

How do I ensure my deposits are insured?

CDIC coverage is automatic, but only if your money is held at a CDIC member institution. Not sure if your deposits are covered? Here’s how to check.

Check your financial institution is a CDIC member

The easiest way to make sure your deposits are protected is to confirm that your financial institution is in fact a CDIC member. You can do this by checking the CDIC member list on CDIC’s website here, or by looking for the purple CDIC logo on your bank’s website or app.

Keep in mind, not all financial institutions are covered by CDIC.

Here’s a handy breakdown:

• Canadian banks: Most Canadian banks are CDIC members and offer full coverage for eligible deposits.

• Provincial credit unions : These are not insured by CDIC. Instead, they’re covered by provincial deposit insurers. Many offer similar coverage, but it’s separate from CDIC.

• Investment firms and brokerages : CDIC does not cover investment accounts like mutual funds, stocks or bonds, even if the firm is affiliated with a CDIC member. These accounts may be protected by the Canadian Investor Protection Fund (CIPF) instead.

• Fintech companies: Many fintechs may feel like banks, but they’re not CDIC members. While some may partner with CDIC-insured institutions, your funds are only protected if they’re held in your name or in trust with proper disclosure. Always ask where your money is actually being held so you can feel confident it is protected.

Learn how to maximize your coverage

While there are limits to CDIC insurance, there are ways to maximize your coverage so that more of your money is protected. Here are some strategies:

• Spread deposits across different CDIC member institutions

• Use different ownership categories – such as personal savings, TFSAs, RRSPs, joint accounts

CDIC in action: Real world examples

Here are some scenarios that show how CDIC can protect Canadians:

Dylan has $10,000 in a chequing account and $40,000 in a savings account at the same bank.

He also has $60,000 in GIC at another institution. The full $110,000 would be covered by CDIC as he holds accounts across different banks.

Anita and Raj have a joint chequing account with $80,000 at their primary bank. They also have individual chequing accounts with $10,000 at the same bank. The joint account is covered separately from their individual accounts, giving Anita and Raj total of $80,000 in coverage for their joint account and $10,000 each for their individual accounts.

Carol has multiple accounts at the same bank: a personal chequing account with $5,000, an RRSP with $90,000 and a TFSA with $9,000. Because each account falls under a different CDIC deposit category, they are insured separately — up to $100,000 per category. That means all of Carol’s deposits are fully protected.

What does CDIC do if a bank fails?

While the chances of a bank failure in Canada are extremely low, it’s still important to know how CDIC would step in if it happens.

If a CDIC member institution fails, you don’t need to file a claim or take any action. CDIC will automatically reimburse you for your insured deposits, usually within a few days. This includes both the principal and any interestearned, up to the coverage limits for each deposit category.

Keep in mind, Canada’s banking system is known for its strength and stability. Since its creation in 1967, CDIC has handled  43 failures, affecting more than 2 million depositors. None of the depositors lost a single dollar.