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How much money in our bank accounts is guaranteed by banks in Canada, wonders a reader of the Duty, Lucette Gauthier. And up to what amount are guaranteed our investments in a credit union in Quebec, wonders for her part Diane Du-Perré.
Recent upheavals in the global banking scene have brought the issue of deposit protection within financial institutions back on the agenda.
In Canada, federally regulated banking institutions are covered by the Canada Deposit Insurance Corporation (CDIC). For institutions regulated in Quebec, this responsibility falls to the Autorité des marchés financiers (AMF).
CDIC members include banks, federally regulated credit unions, loan and trust companies. For the AMF, each of the Desjardins caisses in Québec, the Fédération des caisses Desjardins du Québec, National Bank Trust, Beneva and Ma Financière – Prêts et Placements qualify as authorized deposit institutions.
As for coverage or protection in the event of bankruptcy, deposits are protected up to $100,000 per category of deposit and per authorized deposit institution, including capital and accrued interest, explains the AMF.
Deposit category
The $100,000 protection applies to an individual account plus the same amount for a joint account, for a deposit in trust, for a TFSA, for the new TFSAAPP, for retirement savings (RRSP and RRIF ), for education savings (RESP) and for disability savings (RDSP).
This protection can be well over $100,000 depending on the number of eligible accounts held and the number of authorized institutions or credit unions with which you do business.
And for what is protected, we are talking about deposits in Canadian dollars and foreign currencies held in checking and savings accounts, guaranteed investment certificates and other term deposits. Stocks, mutual funds and segregated funds, bonds and debentures, mortgage securities, shares or other equity securities, treasury bills, life insurance contracts and crypto-assets are not covered.
Some of these financial products may, however, be eligible for other protection programs. On the AMF website, we find the names of Assuris (life insurance), PACICC (damage insurance) and the Canadian Investor Protection Fund (securities).