Understanding deposit insurance
Canada has a deposit insurance system that protects your money if your financial institution goes bankrupt. Find out how it works.
How are your deposits protected?
In Quebec
The Autorité des marchés financiers (AMF) is the body mandated by the Quebec government to regulate Quebec's financial markets and assist consumers of financial products and services.
For every authorized deposit institution, the AMF protects your insurable deposits up to CAN$100,000 per person, per deposit category.
Each Desjardins caisse in Quebec and the Fédération des caisses Desjardins du Québec are authorized deposit institutions.
Within Canada
If your financial institution has a federal charter (most banks do), it’s likely a member of the Canada Deposit Insurance Corporation (CDIC).
The CDIC and the Financial Services Regulatory Authority of Ontario generally apply the same rules as the AMF.
The Canadian Financial Services Consumer Protection website presents the various protection programs in Canada in the event that a financial institution, insurance company or securities dealer goes bankrupt.
Deposit protection
Common insurable deposits include:
- Deposits in everyday accounts
- Deposits in savings accounts
- Guaranteed investment certificates (GICs) and other term deposits
- Market-linked guaranteed investments (MLGIs)
Common uninsured deposits include:
- Shares
- Bonds
- Mutual investment funds
- Exchange-traded funds
Insurable deposit category
Insurable deposits, in Canadian dollars or foreign currencies, are protected up to CAN$100,000 in each of the following categories:
- Non-registered accounts (everyday accounts, savings accounts, term deposits and GICs)
- Registered retirement savings plans (RRSPs), including deposits in locked-in retirement accounts (LIRAs)
- Tax-free savings accounts (TFSAs)
- First home savings accounts (FHSAs)
- Registered education savings plans (RESPs)
- Registered disability savings plans (RDSPs)
- Registered retirement income funds (RRIFs), including deposits in life income funds (LIFs)
- Joint accounts you hold with a particular person or group of persons
- Trust accounts or accounts administered for others (every beneficiary is insured for up to CAN$100,000)
Securities protections
As mentioned above, only eligible deposits are insured. Your shares, bonds and treasury bills held in a financial institution are not guaranteed by deposit insurance.
However, the Canadian Investor Protection Fund (CIPF) protects your securities if your investment dealer is a member of the Canadian Investment Regulatory Organization (CIRO) and goes bankrupt.
The CIPF provides limited insurance of CAN$1 million for individuals for all general accounts combined. Registered retirement funds and registered education savings plans are guaranteed separately for the same amount.
The limit on CIPF protection for corporations, partnerships and unincorporated organizations is generally CAN$1 million for all accounts combined (certain exceptions apply).