Access to digital banking has changed the way we save, spend and earn. Of course, protection is still top of mind where your money is concerned, but do you really want to spend a lot of time and energy thinking about it? Probably not, and you shouldn’t have to. Good news – with EQ Bank*, eligible deposits are automatically covered by the CDIC for up to $100,000 per coverage category. You never even have to lift a finger.
What is the CDIC?
The Canada Deposit Insurance Corporation (CDIC) is the federal Crown corporation that provides deposit insurance against the loss of eligible deposits in the event of a member institution failure. In plain language: the CDIC protects the money you deposit in eligible accounts at over 80 trusted financial institutions, within coverage limits.
The CDIC was established in 1967 and has been protecting Canadians’ deposits ever since. Think of the CDIC as an insurance provider for your bank, but where the benefits don’t cost you a dollar. Instead, the CDIC member banks (like us!) pay a premium to protect the deposits of our clients.
How does it work?
Being protected by the CDIC could not be more convenient. All you have to do is have eligible deposits with one (or more) of the 80+ financial institutions who are members of the CDIC. That’s it! It’s free and automatic. What could be better than that?
Now, let’s dive a little deeper. A lot of us hold funds in different financial products like savings accounts, joint accounts, TFSAs, and RSPs. The CDIC insures up to $100,000 (principal and interest included) separately for each of the following categories per member institution:
- Deposits held in one name
- Deposits held in more than one name (ie: joint accounts)
- Deposits held in a Registered Retirement Savings Plan (RRSP)
- Deposits held in a Registered Retirement Income Fund (RRIF)
- Deposits held in a Registered Disability Savings Plan (RDSP)
- Deposits held in a Registered Education Savings Plan (RESP)
- Deposits held in a Tax-Free Savings Account (TFSA)
- Deposits held in trust
See what you currently have covered by using CDIC’s free and easy to use calculator.
What’s not covered?
There are a few products that are not under the scope of the CDIC and do not benefit from CDIC protection. These include:
- Mutual funds, stocks and bonds
- Exchange Traded Funds (ETFs)
- Cryptocurrencies
- Travelers’ cheques
The bottom line? Your hard-earned money is protected when you bank with a CDIC member financial institution. Since its inception in 1967, the CDIC has handled 43 bank failures or closures and not a single Canadian has lost a single dollar of CDIC protected deposits. Learn more about the CDIC here.
*Equitable Bank is a member of the Canada Deposit Insurance Corporation (CDIC). EQ Bank is a tradename of Equitable Bank.
