Women make up more than half of the workforce in Canada1, but many of us are overwhelmed with the topic of money and personal finances.
And some of us are worried about making a mistake or we think we’re just not qualified enough to learn. We lack confidence. But honestly, one of the most important things we can do is to make sure that our money is protected.
Where to start? Right here: Just as you protect your home, your car and your identity, you need to make sure your money is secure. You’ll feel more in control, more confident, and you’ll have a better relationship with your money.
Q: Is your money safe in a bank?
We generally assume that if we deposit our money in a bank account, then it’s safe. And that’s basically correct. The Canada Deposit Insurance Corporation (CDIC) insures eligible deposits so that money is protected in the event of a bank failure. But there are a few things you need to know.
3 Things You Need to Know
1. CDIC protects your money at no cost to you. In Canada, the CDIC protects deposits in eligible accounts at member financial institutions for up to $100,000—no matter who you are, how much you earn or how you deposit your money! It’s automatic, you don’t even have to sign up for coverage. The best part? There’s no charge. Member financial institutions pay the premiums on deposit insurance.
2. What’s eligible? Money in savings and chequing accounts, GICs and other term deposits. As well, you can maximize your coverage, You’re eligible for $100,000 in each of these accounts: in your name alone; in a joint account; savings in trust (for each beneficiary, includes RESPs); tax-free savings (TFSA); retirement savings; retirement income (RRIF). Plus, deposits at different financial institutions are insured separately, and they’re not subject to a cumulative limit. What’s not covered? Stocks, mutual funds, ETFs and cryptocurrency.
3. Ensure that your bank is a CDIC member. Before you deposit your money in a financial institution, check to see if they are a member. Want to see if your bank is a member institution? Check the CDIC website and search their list.
What’s Coming Down the Pipeline
Here’s more good news. This year, to protect the savings of Canadians planning for their future, new coverage will further extend deposit protection. Registered Education Savings Plans (RESPs) and Registered Disability Savings Plans (RDSPs) will receive separate coverage.
You’re Already One Step Closer
Now you have a better idea of how your money is secure—feel free to share this info with your family and friends. We’re all in this together, and the CDIC is here to protect your money. At this moment, the CDIC is protecting an unprecedented amount of deposits—just over a trillion dollars in savings at more than 80 member institutions2. Since its establishment, the CDIC has handled the failure of 43 members, affecting about two million Canadians. And no one has lost a single dollar under CDIC protection.