How Safe are your Savings?

In Canada, we have a wide variety of alternatives for accumulating money for retirement from personal savings accounts or Guaranteed Investment Certificates to thousands of stocks, mutual funds and other more sophisticated investments. With the recent uncertainties in the business world, most of us are wondering about the long term security of our retirement funds.

Since 1967, Canada Deposit Insurance Corporation (CDIC)-a federal Crown Corporation, has covered any losses experienced by depositors’ with its member financial institutions.  Insurance premiums are paid by these companies to provide this security to their customers. For a complete list of CDIC members, visit their website ( What is covered?
  • $1 to $100,000 of eligible deposits payable in Canada,  in Canadian dollars
  • Savings and chequing accounts
  • GICs and other term deposits with terms of 5 years or less
  • Money orders, certified cheques, travellers’ cheques/bank drafts issued by CDIC institutions
  • Accounts that hold realty taxes on mortgaged properties
  • Debentures issued by CDIC members

What is not covered? 

  • Stocks, stock options and mutual funds
  • Government bonds, treasury bills and corporate bonds because their values move with interest rates
  • Foreign currency deposits because their values move with
  • exchange rates
  • GICs and other term deposits with a maturity of more than five years

Critical Fact  This limitation is $100,000 per financial institution however protection is held separately for more than one category of account. CDIC insures eligible deposits up to the $100,000 held separately for each of the following; savings held in one name, in joint deposits or in trust,  in RRSP, in RRIFs, in TFSAs and money held for paying realty taxes on mortgaged properties. It is important to give some thought to how you do your banking.  Are your savings and chequing accounts at insured financial institutions? If your accounts are large are they at different financial institutions? Speak with your advisors to determine what accounts are covered and the extent of your coverage within that financial institution.

Marie Northey, CA

Partner (Campbellford Office)

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