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CDIC Insurance Coverage
March 28, 2021
9:39 am
Dean
Valhalla Mountains, British Columbia
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.

    sf-smile My two questions, for the day . . .
    .

It is my understanding (please correct me, if I'm wrong) that with FI's insured by the CDIC, there are multiple $100K coverages available :

    - 'Chequing Accounts' have separate $100K CDIC coverage.
    - 'Savings Accounts' have separate $100K CDIC coverage.
    - 'TFSAs' have separate $100K CDIC coverage.
    - 'RRSPs' have separate $100K CDIC coverage.
    - 'RRIFs' have separate $100K CDIC coverage.
    - 'GICs' (5 years or less) have separate $100K CDIC coverage.

Am I correct on this, or am I out to lunch ❓

And if I have more than one GIC at the same FI, is 'each' GIC covered for up to $100K, or is that $100K coverage for 'all' my GIC's at that FI ❓

Thanks,

    Dean

sf-cool " Live Long And Prosper " sf-cool

March 28, 2021
10:13 am
Dean
Valhalla Mountains, British Columbia
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March 28, 2021
10:48 am
Norman1
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There's no separate CDIC coverage for chequing accounts, unregistered GIC's, and unregistered savings accounts.

Some banks have separate CDIC coverage for such deposits because the savings account, for example, is issued by a different CDIC member. In Account and Other Related Service Fees, TD describes such coverage:

Account Issuers: Chequing, Youth, TD Wealth Private Banking, and U.S. Dollar Accounts offered by The Toronto-Dominion Bank. Savings Accounts offered by TD Mortgage Corporation, except in British Columbia or Yukon, which are offered by TD Pacific Mortgage Corporation. All Savings Accounts are guaranteed by The Toronto-Dominion Bank. Any accounts opened at Canada Trust prior to conversion to TD Canada Trust are issued by The Canada Trust Company.

March 28, 2021
11:59 am
lhsaid
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Not quite: within each FI:
- Total of all your unregistered chequing and saving accounts (joint accounts not included) : only first 100K is insured
- For each co-owner group, the total of all chequing and saving accounts for the same group: only first 100K is insured
- Total of all your TFSA (Saving + GICs): only first 100K is insured
- Total of all your RRSPs (Saving + GICs): only first 100K is insured
- Total of all your Retirement Income Accounts: only first 100K is insured

again, this is for each FI.

March 28, 2021
1:25 pm
Bill
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lhsaid, to your first group, unregistered chequing and savings accounts, you need to add unregistered GICs. So if at an fi you have a chequing account balance $20K, an unregistered savings account balance $40k, and two unregistered GICs each worth $20K you're right at the $100k limit.

March 28, 2021
1:35 pm
lhsaid
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Bill said
lhsaid, to your first group, unregistered chequing and savings accounts, you need to add unregistered GICs. So if at an fi you have a chequing account balance $20K, an unregistered savings account balance $40k, and two unregistered GICs each worth $20K you're right at the $100k limit.  

Thanks Bill, I missed that. Basically, in each category you need to combine Chequing+Saving+GICs .

March 28, 2021
2:47 pm
Dean
Valhalla Mountains, British Columbia
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lhsaid said

Thanks Bill, I missed that. Basically, in each category you need to combine Chequing+Saving+GICs .  

That's a pretty good way to sum it up.

Thanks everyone, for setting me straight.

      Dean

sf-cool " Live Long And Prosper " sf-cool

April 2, 2021
5:50 pm
smayer97
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Another related thought to consider is to understand if your account is with a "wholly owned independent subdiary" which is separately insured by the CDIC vs a branding/marketing division of a bank, which would NOT be insured separately from deposits at the main bank.

Examples I have discovered recently that are aggregated and NOT insured separately:
- Simplii and CIBC
- Motive Financial and CDW (Canadian Western Bank)
- Neo and Concentra

Vs examples that ARE insured separately, even though they are owned by another bank:
- Tangerine and Scotiabank
- B2B Bank and Laurentian Bank

Is there a place on this site where these things are tracked?

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