Your money is safe in Canadian banks
Canada Life - Mar 17, 2023
Recent news of bank failures in the U.S. may be making you nervous. Banking failures are extremely rare in Canada and customers are protected
Bank failures, Canadian banks, banking failures
Don’t worry, your money is safe in Canadian banks
It’s understandable that recent news of bank failures in the U.S. may be making you nervous. Could failures happen here? The good news is banking failures are extremely rare in Canada1 and customers are protected.
The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that protects your eligible deposits at member financial institutions. You don’t need to apply or pay for the deposit insurance offered by CDIC because your eligible deposits are automatically insured. In the rare event your bank fails, you’re protected up to $100,000 per eligible deposit which you’ll be paid automatically.
If you have deposits in a provincially regulated credit union, caisse populaire, or a provincially regulated trust and loan company, your eligible deposits are covered under your provincial insurance plan.2
- Alberta - Alberta Credit Union Deposit Guarantee Corporation
- British Columbia - Credit Union Deposit Insurance Corporation of B.C.
- Manitoba - Credit Union Deposit Guarantee Corporation
- New Brunswick - New Brunswick Credit Union Deposit Insurance Corporation
- Newfoundland - Newfoundland and Labrador Credit Union Deposit Guarantee Corporation
- Nova Scotia - Nova Scotia Credit Union Deposit Insurance Corporation
- Ontario - Financial Services Regulatory Authority of Ontario
- Prince Edward Island - Credit Union Deposit Insurance Corporation
- Quebec - Autorité des marchés financiers
- Saskatchewan - Saskatchewan Credit Union Deposit Guarantee Corporation
Deposit insurance doesn’t cover mutual funds, stocks, bonds, Exchange Traded Funds (EFTs), cryptocurrencies or losses due to fraud or theft.3
Your investments may be protected if you deal with a company that’s a member of the Canadian Investor Protection Fund (CIPF). CIPF only protects you in the event a member firm becomes insolvent. Check out this member list to see if a company you deal with is a member of CIFP.
If you’re worried about how recent events in the American financial sector might affect your financial plan, contact me. We can review your plan together.