- The CDIC is a federally run institution that insures the eligible accounts of Canadian investors. The amount the CDIC will pay was the equivalent of about $100,270 in U.S. dollars as of early 2011. This can be a concern for Canadian investors who have more than $100,000 in their country's currency on deposit at one financial institution.
- Non-registered Canadian accounts are investment or savings accounts on which interest and investment income is taxed at the account holder's income tax rate. These accounts include bank accounts in Canadian dollars, guaranteed investment certificates (GICs) in Canadian dollars with a maturity less than or equal to five years, bank drafts, money orders, traveler's checks, certified checks, debentures issued by loan companies and money held for property taxes on mortgaged properties. Amounts held in one name are insured for up to $100,000 total. You can hold another $100,000 jointly. Therefore, a couple can have up to $300,000 of non-registered deposits insured.
- Registered Canadian accounts are structured so the account holder will pay less tax on the income generated there than in a non-registered account. Registered account deposits held in registered retirement savings plans, retirement income funds, education savings accounts and tax-free savings accounts are CDIC-insured. Accounts held in trust also can be CDIC insured. The underlying investments in each account must be eligible deposits.
- Even if they are held in a registered account, mutual funds and stocks are not CDIC insured. Bank accounts or investments held in any currency other than Canadian dollars, GICs with a term to maturity greater than five years, bank drafts, money orders, certified or traveler's checks issued by a non-CDIC financial institution, T-bills, bonds, notes and debentures also are not counted within the Canadian deposit limits when calculating CDIC coverage.
Protection Limits
Non-Registered Accounts
Registered Accounts
Coverage Exclusions
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