You work hard for your money and do your best to support your family. Your family’s finances are one of those things that may be hard to talk about but it’s important to know where your money is going. Saving money for a rainy day and teaching your children about saving is also important. We all do our best to set aside funds for our children’s education, our own retirement and other important milestones, but do we really know much about the process or how our money is secured? Not everyone knows that much about CDIC, so we wanted to make sure that you had the real information that you need to know. After all, this is your money that we are talking about!
CDIC is the Canada Deposit Insurance Corporation and they protect eligible deposits up to $100,000 per insured category at each CDIC member financial institution in the event of a bank failure. This is a benefit that everyone gets for free, as long as they make their deposits in Canada with Canadian currency at a CDIC member financial institution.
If you have chequing or savings accounts, term deposits of 5 years or less, or even certain types of deposits in TFSAs, RRSPs or RRIFs, at member financial institutions, those are covered by CDIC.
There are some products that are not covered and those include mutual funds, term deposits with terms greater than five-year, foreign currency deposits, and any funds not held at or issued by CDIC members. Also not covered are digital currencies, like bitcoin.
You may not think that CDIC insurance is that important, that banks don’t fail in Canada. It has happened before, and realistically, it could happen again in the future.
What would you do if you couldn’t access your money – online, through your phone app, at ATMs, or by tapping your debit card? How would your bills be paid? How would you take care of your family? These questions are not meant to scare you, we are just trying to be realistic and show you why CDIC matters to everyone.
Our goal is to make sure that everyone knows about CDIC and understands the coverage they provide. Armed with this knowledge, you can make informed decisions as you manage your family’s finances. After all, you work hard for your money!
If you are not sure if your accounts are covered by CDIC, we recommend going to your financial institution and asking questions. Those questions will give you the peace of mind that you need to guarantee the future of your family and your money. In addition, all CDIC member institutions are required to have, on display, CDIC’s brochure for clients to pick up and take home. Look for the purple brochure next time you’re in a branch.
The CDIC was created to help you, so make sure you are informed about how they keep your money safe for you. Now and in the future.
Read more about the CDIC here www.cdic.ca
Disclosure-This post has been brought to you by CDIC, As always all opinions are my own
That is kind of a scary thought! It’s one of those things a lot of us probably don’t even think about. Thanks for bringing it up!
I think many of us feel that we are protected, very unnerving to know that isn’t necessarily true. We all need to be more aware! Thanks for this information, definitely going to check out CDIC .
I’ve never heard of the CDIC. I’ll be making an inquiry at the bank next time I’m there. Thanks for sharing.
CUDIC is a similar service offered by credit unions. Same coverages except there is no 100k limit. It covers all deposits.
This is a great post and I will be asking more question at my bank in the future.
This post has so many great tips. I need to reach out to my bank and ask ore about this.
Living in the US I didn’t know anything about this but it was really interesting to learn.
That kind of peace of mind is irreplaceable! Everyone needs to make sure they’re protected.
I learned about the CDIC awhile ago too and was comforted to know it is there. Now I spy their logo on every bank I deal with and I like knowing what it means.
This will give every depositor much needed peace of mind that their hard earned money is insured. We can never be sure of the economy and it is best that we have some sort of protection for our finances.
Wow I’ve never heard of this CDIC, but thank you for shining light on this. I wish they did something like that here in the US!
This would give such peace of mind! I had never heard of this before but think it would be something to look into!
I had no idea what the CDIC was until today. I’ve always been so scared of the bank going bankrupt and having to close down and saying “oops sorry we lost all your money.”