CDIC Explained: Everything to Know About CDIC & Deposit Insurance in Canada

This post is sponsored by Canadian Deposit Insurance Corporation (CDIC). All views and opinions expressed represent my own.

What would happen if your bank collapsed tomorrow? You may be surprised to learn that you’d likely be in the same financial position as you are today. That’s because your bank deposits are probably protected (up to certain limits) thanks to the Canada Deposit Insurance Corporation (CDIC).

This fact has been true since CDIC’s creation in 1967. Since that time, Canada has had 43 financial institution failures, with the last one collapsing in 1996. Not only does that mean that there hasn’t been a bank failure in Canada for almost 30 years, but even throughout all 43 bank failures, not one depositor has lost a single dollar under CDIC protection because of it. To break this down even further, over the past 5 decades, CDIC has protected more than 2 million people holding $26 billion in insured deposits at these failed financial institutions.

To me, this seems pretty straightforward. Nevertheless, I’ve been trying to educate people about CDIC for years, and I’m still confronted with skepticism or denial about how CDIC has and will continue to protect Canadians’ money at the bank. So, in this post, I’m going to explore some of the things you absolutely need to know about CDIC, how it works, and respond to some of the most common myths and misinformation I get online about it to set the record straight once and for all.

What Is CDIC?

The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation established in 1967 to restore confidence in Canada’s banking system largely due to the failures of Atlantic Acceptance Company (AAC) in 1965 and Prudential Finance Company (PFC) in 1966. It was also meant to bring about improvements in financial standards and enhance stability within financial institutions by bringing “provincial financial institutions within the federal framework,” (CDIC).

How Is CDIC Funded?

CDIC is funded by the member banks themselves. No taxpayer or government money is used to fund CDIC. All banks, federally regulated trust and loan companies, and federal credit unions must become members of CDIC. The only exception, made possible by federal legislation, are banks that accept only wholesale deposits of $150,000 or more and those banks must receive authorization to opt-out of membership.

Funding is possible by members paying annual premiums on insured deposits to CDIC, similar to you having to pay premiums on a life insurance policy. Every member institution is classified into 1 of 5 premium categories based on its level of risk, which is why premiums the members pay can differ institution to institution.

As of their 2025 Annual Report, CDIC currently has $10.2 billion in its reserves, which is on track to exceed target of 85 basis points of insured deposit.

Which Institutions Are CDIC Members?

The easiest way to find out if your financial institution is CDIC insured is by simply looking for the CDIC logo on that bank’s website (it’s usually located in the footer), app or on the doors of your local branch. If you’re looking for a more thorough list, you can find all CDIC members here.

As you’ll see, all the big and most common banks are all there. Quite honestly, I’d be surprised if your bank wasn’t listed.

What About Provincial Credit Unions, Fintech or Investment Companies?

Although none of these are covered by CDIC, they do have their own forms of protection behind them. Provincial credit unions are members of their provincial deposit insurance corporation. For example, if you were to bank with Prospera Credit Union in British Columbia, they are insured by Credit Union Deposit Insurance Corporation of British Columbia (CUDIC). Similarly, if you were to bank with Cambrian Credit Union, they are insured by the Deposit Guarantee Corporation of Manitoba (DGCM).

Now that more fintech companies are offering deposit accounts, it’s also important to know how they are insured. For example, Wealthsimple has been offering cash accounts since 2020, however they don’t actually hold your money. Instead, they use partner banks as custodians of your money, which can mean your deposits may be CDIC insured, depending on how they hold them.

In terms of investment firms, discount brokerages, and robo-advisors, as I’ll share soon, investments are not covered under CDIC anyway. With that said, these companies must offer some protection in case they ever go bankrupt, and that protection is offered through the Canadian Investor Protection Fund (CIPF).

What’s Covered Under CDIC?

So here’s where you really need to pay attention because coverage is very specific. First, you need to know what types of deposits are and aren’t covered:

Eligible Deposits

Deposits in Canadian or foreign currency (including via payroll, Interac e-transfer, or cheque).
Guaranteed Investment Certificates (GICs)
Other term deposits (i.e. Principal Protected Notes and debentures)

Non-eligible Deposits

Mutual funds
Stocks and bonds
Exchange Traded Funds (ETFs)
Cryptocurrencies

Next, you need to understand the limits in place. You’re covered up to $100,000 (including principal and interest), per category, per member institution.

Myths vs. Facts about CDIC

Okay, now let’s debunk some myths and misinformation to ease your mind about everything.

“Has CDIC ever actually had to pay out?”

Yes. CDIC has been tested since its inception many times. 43 times to be precise with the last time being in 1996 with the failure of Security Home Mortgage Corporation. You can find a complete list of bank failures the CDIC protected against here.

“It’s government-run — does that mean taxpayers will be on the hook?”

No. CDIC is funded by its members, not taxpayers. The government establishing CDIC was simply meant for stability purposes, not a source of funding.

“All my money in the bank is insured, right?”

Not exactly. Only eligible deposits, which include cash, GICs and other term deposits. Then there is the $100,000 per category, per institution limit. But considering not many Canadians are holding that much cash at the bank, it’s likely your eligible deposits are 100% covered.

“If I have $100,000 split across two savings accounts at the same bank, I’m covered for both?”

Savings accounts would fall into the “Deposits Held in One Name” category. If you have 2 different savings accounts that the same bank, their combined total assets would be covered up to $100,000. Similarly, chequing accounts would also be part of this category. So, if you have Savings Account #1 with $50,000 in it, Savings Account #2 with $50,000 in it, and a Chequing Account with $20,000, totalling $120,000 in total eligible deposits under the “Deposits Held in One Name” category, only $20,000 of that money would not be covered (but the other $100,000 would).

“My investments in my TFSA are insured because it’s in a TFSA account.”

No. Investments, even if they are in a TFSA, are not covered under CDIC. They may however be covered under CIPF. That is unless you are referring to GICs or other term deposits as your investments, in which case those products are covered under CDIC.

“Foreign currency accounts are covered — I have U.S. dollars in a Canadian bank.”

Yes. CDIC covers foreign currencies including U.S. dollars, as long as they are payable in Canada.

“If my bank fails, where do I apply to get my money back and how long is the wait?”

Coverage is automatic for all depositors, so you don’t need to do anything. You should receive any funds owed to you within a few days.

“Would I even hear about a bank failure before it happens?”

Likely not. Most bank failures are usually handled quietly over a weekend to minimize panic in the form of a bank run. With that said, CDIC will communicate directly with depositors when this happens.

Got Any More Questions for Me?

Let me know in the comments.

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