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Is Your Money Safe with a Canadian Bank?

Olu Olu
Sep 15
2 min read

When you tuck your money into a Canadian chequing, savings, or GIC account, you want to know it’s safe—no matter what happens in the headlines. That’s where the Canada Deposit Insurance Corporation (CDIC) steps in, protecting millions of Canadians’ bank savings behind the scenes.

What Does CDIC Do?

CDIC is a federal Crown corporation, independent from banks, with a simple but vital job: if a CDIC member bank fails (very rare, but possible), CDIC insures your eligible deposits and pays you back, quickly and for free.

How Much Protection Do You Get?

Your eligible deposits are insured for up to $100,000 per category, per bank. That’s principal plus interest, whether it’s in Canadian dollars or common foreign currencies.

CDIC Coverage Categories:

Deposits in one name (just you)
Joint deposits (you + someone else)
Savings in RRSPs, RRIFs, TFSAs
New: First Home Savings Accounts (FHSAs)
RESPs, RDSPs, and trust deposits

If you hold deposits in several categories—even at the same bank—you get a separate $100,000 of protection for each. And if you use more than one CDIC member bank, your protection multiplies.

What’s Not Insured?

CDIC coverage protects deposits—meaning cash, savings, and GICs. It does not cover:

Stocks, mutual funds, or bonds (covered by CIPF)
ETFs, cryptocurrencies
Losses from bad advice or fraud
Mortagage tax accounts

If you want to maximize your risk-free savings, spread them across different categories and banks for multiple layers of protection.

Fast, Automatic, No Paperwork

If a CDIC member bank fails, you don’t need to fill out forms—CDIC will contact you and reimburse you, usually within days. And you never pay for this insurance—it’s built into being a Canadian depositor.

Bottom line: Bank failures in Canada are rare, but if they ever occur, CDIC protection is automatic. See a list of CDIC members here. Members include banks, federally-regulated credit unions, as well as loan and trust companies. If your institution is included on this list, you can be rest assured that your deposit is in safe hands.

If you need help investing your money instead of just keeping it in a Canadian Bank to earn meager interest, Let’s Talk. I help clients across Canada build sustainable financial plans rooted in clarity and confidence.