Deposits held in one name - CDIC (2024)

FAQs

Does CDIC cover multiple accounts? ›

Many people deposit money into more than one account or financial product. We insure eligible deposits for up to $100,000 (including principal and interest) at each member institution, for each of the following categories: Deposits held in one name. Deposits held in more than one name (joint deposits)

What deposit insurance covers. CDIC insures eligible deposits separately up to $100,000. Deposit insurance covers the following types of deposits: savings and chequing accounts.

CDIC protects eligible deposits in Canadian and foreign currency for up to $100,000 (Canadian dollars) in each of CDIC's insurance categories. This protection applies to deposits held in registered accounts such as RRSPs and TFSAs and non-registered accounts such as savings, chequing and joint accounts.

GICs, term deposit, savings accounts, and chequing accounts are eligible deposit products and therefore are covered for up to $100,000 of CDIC protection.

The standard maximum deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC insures deposits that a person holds in one insured bank separately from any deposits that the person owns in another separately chartered insured bank.

CDIC coverage does not apply to stocks, bonds or mutual funds, so those investments, which amount to $180,000 of the total $290,000 in the category, are not eligible to be insured by CDIC.

What's protected and why: Within the insured category of TFSA, the above GIC and term deposit are eligible deposit products and are therefore combined for coverage of up to $100,000 of CDIC protection. So $100,000 of the eligible $110,000 within the TFSA category are protected.

6 Money held in member institution branches outside Canada is not covered. Deposits held at financial institutions outside Canada are not covered either. So if you have an account at Bank of America in Florida, your money isn't protected under the CDIC. It may be covered by the FDIC.

Are my U.S. funds held at a U.S. bank covered by CDIC? No. Foreign currency deposits at foreign financial institutions are not covered by CDIC. American currency in U.S.-based banks may be covered, however, by the Federal Deposit Insurance Corporation (FDIC).

Should I keep all my money in one bank in Canada? ›

In particular, having more than one bank account can provide you with extra protection for your funds if you have more than the $100,000 CDIC insurance limit. Splitting your funds between banks can also give you access to extra features and benefits that you don't have at your current financial institution.

The CDIC insures up to $100,000 for each depositor in each covered category, while the FDIC insures up to $250,000 for each depositor in each covered category. Each institution also offers coverage of slightly different financial products.

FDIC insurance covers up to $250,000 per depositor for each ownership category in each distinct bank. You can open accounts at different banks or in different ownership categories at one bank to maximize your insurance coverage.

The short answer is yes. CDs are federally insured by the FDIC. The FDIC insures deposit accounts up to $250,000 per depositor, per FDIC-insured bank and per ownership category. This includes savings and checking accounts as well as money market accounts and CDs.

Having multiple chequing and savings accounts at various banks can give you the peace of mind you need to know that you'll have access to at least some of your money if there's an issue with one financial institution—especially if you have bills to pay and other immediate needs for your funds.

Maximize CDIC coverage

For instance, if you have $200,000 to invest, consider putting it into multiple GICs, in increments of less than $100,000 (to make sure accrued interest is covered) in a combination of regular GICs, TFSAs and RRSPs. This ensures that all $200,000 is eligible for insurance by CDIC.