CDIC deposit insurance explained for newcomers

What is CDIC?

The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation created in 1967. It protects eligible deposits at its member institutions if a member fails. Members include banks, federally regulated credit unions, and trust and loan companies.

Members pay for CDIC. It does not receive taxpayer dollars to operate. Coverage is free and automatic: you do not sign up, and the Financial Consumer Agency of Canada (FCAC) says you do not need to file a claim. CDIC says no one has ever lost a dollar of deposits under its protection.

What does CDIC cover, and what does it not?

For newcomers this means a US dollar savings account at a CDIC member is eligible. Investments inside a TFSA or RRSP, such as ETFs, are not covered by CDIC, even at a bank. Only the deposits (cash and GICs) in those plans are.

How does the $100,000 limit work?

CDIC insures up to $100,000 per insured category, per member institution, including principal and interest. Each category is insured separately:

• Deposits in one name
• Joint deposits
• RRSP, RRIF, TFSA, RDSP, RESP and FHSA (each its own category)
• Trust deposits

Example 1. At one bank, you hold $80,000 in your own name, $40,000 in a joint account with your spouse, and $20,000 in an FHSA. Each amount is in a different category and under $100,000, so all $140,000 is eligible.

Example 2. You hold $150,000 in savings in your own name at one bank. Only $100,000 is insured. The other $50,000 is not.

Brands that share coverage. CDIC lists some brands as trade names of a member. Simplii Financial is a trade name of CIBC, and EQ Bank is a trade name of Equitable Bank. Deposits under the brand and the parent are added together. Tangerine Bank is listed as its own member, so it has its own coverage, separate from Scotiabank. Check any brand on CDIC’s member list.

Are fintech apps covered? Trust accounts explained

CDIC’s Information Bulletin for Fintechs (April 2026) sets out three points:

1. Fintechs are not CDIC members. CDIC only insures deposits held at its members.
2. If a fintech holds your money in trust at a member, coverage can be up to $100,000 per beneficiary, but only if CDIC’s disclosure rules are met. If the account is in the fintech’s own name and not in trust, its clients are not protected.
3. Protection applies if the member institution holding the money fails. It does not apply if the fintech itself fails.

Checked October 10, 2026, on each provider’s own site and CDIC’s member list.

What is CIPF, and how is it different?

The Canadian Investor Protection Fund (CIPF) covers clients of member investment dealers. If a member firm becomes insolvent, CIPF works to return property it held for you. If property is missing, CIPF covers it within limits:

• Up to $1 million for all general accounts combined (such as cash, margin, TFSA and FHSA accounts)
• Up to $1 million for all registered retirement accounts combined (such as RRSP, RRIF and LIF)
• Up to $1 million for all RESPs where you are the subscriber

CIPF does not cover a drop in the value of your investments, unsuitable investments, poor advice, or the default of the company that issued a security. Crypto assets are not eligible. In short: CDIC protects deposits if a bank fails; CIPF protects your holdings if your dealer fails. Neither protects you from market losses.

What about credit unions and Desjardins?

Federally regulated credit unions are CDIC members. Most credit unions and caisses populaires are regulated by their province and covered by a provincial deposit insurer instead. FCAC says these plans vary between provinces. Examples, as of October 10, 2026:

Other provinces have their own insurers and rules. Ask your credit union who insures it. See credit unions for newcomers and Desjardins for newcomers.

What happens if a bank fails?

CDIC has several tools. It may support the sale of a troubled member to a healthy one. If needed, it reimburses depositors directly.

• Non-registered deposits (chequing, savings, GICs): CDIC says cheques start to be mailed in the days after the failed member closes. It sends a separate letter, statement and cheque for each category.
• Registered deposits (RRSP, TFSA, FHSA and others): this takes longer, to avoid tax problems. You open the same type of plan at a new institution, and it arranges the transfer.

Keep your Canadian mailing address up to date with your bank, since CDIC pays by mail.

How to check your own coverage

1. Search the institution on CDIC’s member list. Look for trade names under the parent bank.
2. Add up deposits by category at each member, including brands that share coverage.
3. For a fintech, read its disclosure: is your money held in trust, at which members, and are there conditions (such as opting in)?
4. For a credit union, find your provincial insurer.
5. Watch for scams. A fake “insured” investment that promises high returns is a common fraud. See banking scams to avoid.

Common questions

Sources

• CDIC: What’s covered
• CDIC: Information Bulletin for Fintechs (April 2026)
• CDIC: Deposits held in trust
• CDIC: List of member institutions
• CDIC: About CDIC
• CDIC: Reimbursement of insured deposits, for depositors
• FCAC: Deposit insurance
• CIPF: About CIPF coverage
• AMF (Québec): Deposit protection
• FSRA (Ontario): Credit unions and deposit insurance
• CUDIC (British Columbia): What CUDIC covers
• Wealthsimple Help Centre: How we keep your money safe
• KOHO: Is my money safe with KOHO?
• KOHO Help: Is KOHO CDIC insured?
• Neo Support: Get a Neo Savings account
• Wise Help: How Wise Payments Canada Inc. safeguards customer funds
• Simplii Financial: No Fee Chequing Account
• EQ Bank: Savings accounts
• Tangerine: No-Fee Chequing Account

Checked against these sources on October 10, 2026. Spotted something out of date? Tell us.