Understanding CDIC Insurance

The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that protects the savings of Canadians in the event that a member financial institution fails. CDIC insurance is automatic and free - you do not have to apply for it or pay a premium. If you hold eligible deposits at a CDIC member institution, you are protected up to the applicable coverage limits.

What CDIC Covers

CDIC insures eligible deposits up to $100,000 per depositor, per institution, for each of the following separate coverage categories:

Because coverage applies separately to each category, a single depositor can have well in excess of $100,000 protected at a single institution. For example, an individual could have $100,000 in a personal savings account, $100,000 in a joint account with their spouse, $100,000 in a TFSA, and $100,000 in an RRSP - all at the same institution - and every dollar would be fully covered.

What CDIC Does Not Cover

It is equally important to understand what CDIC does not insure. The following investment products are not covered by CDIC, regardless of where they are held:

• •Mutual funds
• •Stocks
• •Bonds
• •Exchange-traded funds (ETFs)
• •Cryptocurrencies

How SG Wealth Helps You Maximize Your Coverage

For investors with large GIC portfolios, structuring holdings to maximize CDIC coverage is an important planning consideration. An SG Wealth advisor can help you spread deposits across multiple CDIC member institutions, use different ownership categories to increase coverage at a single institution, and build a diversified portfolio that balances the security of CDIC-insured products with the growth potential of other investments.

CDIC insurance is one of the key advantages of GIC investing. Learn more about how we integrate GICs into our broader Investment Solutions.