Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada


Canada Deposit Insurance Corporation Deposit Insurance Information By-law

Version of the schedule from 2006-03-22 to 2006-12-10:

SCHEDULE II(Section 6)


Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation created in 1967 to protect the money you deposit in member financial institutions in case of their failure.

CDIC’s members are banks, trust companies and loan companies that display this sign:

[CDIC will insert membership sign from Schedule I]

What does CDIC insure?

CDIC insures eligible deposits you make with our members. Each CDIC member maintains a register of the eligible deposits it offers, which you may consult at its branches. Insurable deposits include:

savings and chequing accounts;
term deposits, such as guaranteed investment certificates (GICs), and debentures issued by loan companies;
money orders and drafts;
certified drafts and cheques; and
traveller’s cheques issued by members.
To be eligible for deposit insurance protection, your deposit must be payable in Canada, in Canadian currency. Term deposits must be repayable no later than five years after the date of deposit.
Not all deposits and investments offered by our members are insurable. For example, CDIC does not insure:
foreign currency deposits (e.g. accounts in U.S. dollars);
term deposits with a maturity date of more than five years from the date of deposit;
debentures issued by chartered banks;
bonds and debentures issued by governments and corporations;
Treasury bills; and
investments in mortgages, stocks and mutual funds.
What is the maximum insurance protection?
Basic Protection:
By law, the maximum basic protection for eligible deposits is $60,000 per depositor (principal and interest combined) in each member institution. Deposits are not insured separately in each branch office of a member institution.
Separate Protection:
CDIC provides separate protection for joint deposits, deposits held in trust and deposits held in registered retirement savings plans (RRSPs) and in registered retirement income funds (RRIFs).
You are responsible for ensuring that the member institution’s records include all information required for the separate protection of these deposits. (see following sections for details)
Joint Deposits
Deposits you own jointly with someone else are insured separately from deposits in your own name, provided that the records of the member institution:
— indicate the deposits are owned jointly; and
— include the name and address of each joint owner.
The maximum insurance for all deposits having the same joint owners at each member institution is $60,000 (collectively, not per individual owner).
Trust Deposits
Deposits held in trust are insured separately from deposits owned individually by the trustee or the beneficiary, provided that the records of the member institution:
— state that the deposit is held in trust;
— identify the name and address of the trustee(s); and
— identify the name and address of the beneficiary(ies).
At each member institution, all eligible deposits having both the same trustee and the same beneficiary are combined, and the total is insured to a maximum of $60,000.
If a trust deposit has more than one beneficiary, the portion owned by each beneficiary must be identified on the member institution’s records and updated each year as of April 30. Each beneficiary’s portion is insured up to $60,000.
Registered Plans
CDIC does not insure all funds held in registered plans. To be insurable, deposits must be held in savings accounts or in term deposits with a maturity date not exceeding five years, and must be payable in Canadian currency.
Your maximum deposit insurance for all deposits held in RRSPs with the same member institution, including those placed by the trustee of your self-directed plan, is $60,000 (principal and interest combined).
Your maximum deposit insurance for all deposits held in RRIFs with the same member institution, including those placed by the trustee of your self-directed plan, is $60,000 (principal and interest combined).
Contributions you make to a plan for your spouse or common-law partner are combined with other deposits held in plans under the name of your spouse or common-law partner with the same member institution not with deposits in your plans.


 The following example shows how deposit insurance applies to eligible deposits at a CDIC member institution. All amounts include principal and interest.

Chequing  $3,000
Term deposits$50,000
$68,000$60,000  $8,000
Carole, RRSPTerm deposits$40,000$40,000
Mutual funds$15,000$15,000
Robert, in trust for CaroleTerm deposits$50,000$50,000
PaulChequing Term  $2,000
Paul, RRSPU.S. dollar  $5,000  $5,000
Term deposits$50,000$50,000
Paul, RRIFTerm deposits$75,000$60,000$15,000
Carole and Paul,Savings$10,000
jointlyTerm deposits$80,000
Paul and Robert,Savings  $5,000  $5,000
What happens if a CDIC member amalgamates with another member?
If an amalgamation of CDIC members results in your total insurable deposits with the new member institution exceeding the $60,000 maximum, your insured demand deposits (e.g. savings and chequing accounts) in each institution on the date of merger continue to be insured until withdrawn; insured term deposits continue to be protected until their maturity date. While your deposits total more than $60,000, new deposits placed at the amalgamated member are not insured.
If your deposits made with the institutions before the merger total less than $60,000, any new deposits you make at the amalgamated member will be added to those previous deposits, and the total will be insured to the $60,000 maximum.
What happens if a member institution fails?
It is not necessary to file a claim with CDIC.
CDIC writes to the insured depositors advising them of how and when they will receive payment.
Payments are made as soon as possible (normally within two months).
The payment includes principal and interest up to $60,000.
No interest will be paid from the date the Court officially closes the failed institution, except in extraordinary circumstances (e.g. CDIC takes more than six months to repay insured depositors).
To avoid collapsing registered plans, CDIC transfers the insured funds to another member.
How is deposit insurance funded?
CDIC’s member institutions fund deposit insurance through premiums paid on the insured deposits that they hold. If required, CDIC is authorized to borrow additional funds, which CDIC repays with interest.
This document contains general information and is not intended to be a legal interpretation of Canadian legislation respecting deposit insurance.
Additional information or a CDIC Membership brochure can be obtained by contacting a CDIC member institution or by calling
Canada Deposit Insurance Corporation
50 O’Connor Street, 17th Floor
P.O. Box 2340, Station D
Ottawa, Ontario
K1P 5W5
Web site:
  •  SOR/97-533, s. 1
  • SOR/2001-442, s. 1
  • err.(E), Vol. 136, No. 7

Date modified: