2.1.5 Deposit insurance

Financial institutions in Canada are well regulated and have not gone bankrupt for decades, but it has happened in the past. When a financial institution fails, it could be unable to pay back the money its depositors put into their accounts. That's why most institutions that take deposits are members of a deposit insurance system.

Deposits in banks and many trust companies are insured by the Canada Deposit Insurance Corporation (CDIC) to a maximum of $100,000 per depositor when the funds are held in an eligible account with a member of the CDIC. Deposit institutions chartered by Quebec are insured by the Autorité des marchés financiers (AMF). For full details, go to the CDIC website or the AMF website.

Credit unions and caisses populaires are insured to a level set by each province. In British Columbia, Alberta, Saskatchewan and Manitoba, the amount insured for eligible accounts is unlimited, while other provinces offer different levels of protection. For details, go to the website for your province:

Provincial credit union deposit insurers:

• Credit Union Deposit Insurance Corporation of Britsh Columbia
• Alberta Credit Union Deposit Guarantee Corporation
• Saskatchewan Credit Union Deposit Guarantee Corporation
• Deposit Guarantee Corporation of Manitoba
• Financial Services Regulatory Authority of Ontario
• Autorité des marchés financiers (Quebec) (for provincially chartered trust companies, caisses populaires and insurance companies)
• Credit Union Deposit Insurance Corporation (Prince Edward Island)
• Nova Scotia Credit Union Deposit Insurance Corporation
• New Brunswick Credit Union Deposit Insurance Corporation
• Newfoundland and Labrador Credit Union Deposit Guarantee Corporation

To protect your money, check if the financial institution is a member of one of the deposit insurance systems. Each deposit insurance system has its own terms and conditions, so be sure to ask whether or not your deposits are protected.