Understanding deposit insurance

Have you ever wondered what would happen to your money if your financial institution failed? In Canada, there is a deposit insurance system financed by the institutions themselves.

Your eligible deposits are generally insured up to $100,000 per person, per institution.

In Canada, all institutions that take deposits from the public must be registered in a deposit insurance program.

If your financial institution has a federal charter (most banks do), it is a member of the Canada Deposit Insurance Corporation.

In Quebec, the Autorité des marchés financiers () manages the deposit insurance fund.

There are 4 types of AMF members authorized to take deposits:

  • financial services cooperatives
  • trust companies
  • savings companies
  • insurers

Elsewhere in Canada

The Canada Deposit Insurance Corporation and provincial deposit insurance agencies generally apply the same rules as the AMF.

Investment Industry Regulatory Organization of Canada

Your securities held in a financial institution are not guaranteed by deposit insurance.

However, the Canadian Investor Protection Fund () protects your assets if you purchased them from an investment dealer registered with the Investment Industry Regulatory Organization of Canada ().

Your stocks, bonds, mutual funds, etc., are guaranteed up to $1 million. Registered funds (RRSP, RRIF, and RESP) are guaranteed separately in the same amount.

The CIPF protects your equity shares not only if a member becomes insolvent but also in the case of fraud.