CDIC insurance is deposit protection offered by the Canada Deposit Insurance Corporation (CDIC). It safeguards eligible deposits at member financial institutions in case the bank fails, up to certain limits.
What’s Covered
- Savings accounts, chequing accounts, and term deposits (like GICs) up to 5 years.
- Coverage limit: Up to $100,000 per insured category, per institution.
What’s Not Covered
- Stocks, bonds, mutual funds, and ETFs.
- Cryptocurrency holdings.
- Foreign currency deposits (like USD accounts).
Why It Matters
CDIC insurance provides peace of mind by protecting deposits in case of bank failure. It ensures that Canadians’ everyday savings remain safe, making it a cornerstone of financial security.
Final Thoughts
While CDIC insurance covers many common deposit types, it does not protect investments like stocks or crypto. Understanding its scope helps Canadians keep their money safe and choose secure financial institutions.