Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this7:51 am
November 15, 2018
Offline
Does CIDC coverage apply to the original cost of a 5yr or less GIC or the present value? So for instance, if I only have one account that is covered by the CIDC & I bought a compound 5yr GIC 4 yrs ago for $90,000 that is now worth $99,000, how much CIDC coverage would I have on that GIC if the FI went belly up today? Thanks
8:49 am
February 20, 2018
Offline
total interest n principal combined under 100,000. If your 4th and 5th year compound interest payments bring you above 100,000 that amount above 100,000 isnt covered
9:00 am
November 7, 2014
Offline
You are covered to $100,000 at current value. You are covered for interest earned in the investment, $99,000 in your case. Frankly, I do not know if CDIC would reimburse accrued interest, assuming an FI failed in the middle of an investment period. Any interest already compounded into the GIC would count toward the $100,000 max coverage because it has already been paid.
10:46 am
April 6, 2013
Offline
According to Canada Deposit Insurance Corporation Act subsection 14(2.3), accrued interest would be paid, up to the date CDIC issues the order to wind-up the financial institution:
How interest on deposit to be calculated
14 (2.3) For the purpose of calculating the payment of the [Canada Deposit Insurance] Corporation in respect of any deposit insured by deposit insurance where a winding-up order has been made in respect of the member institution that holds the deposit, the interest accruing and payable in relation to the deposit shall be included only to the date of the commencement of the winding-up.
11:27 am
November 15, 2018
Offline
Thanks for all of your replies, very helpful.
6:25 pm
August 10, 2018
Offline
But please don't forget. When the SHTF, we are all up the creek w/o a paddle.
7:27 pm
April 26, 2019
Offline
And then SWRDH.
5:48 am
August 10, 2018
Offline
SWRDH?
7:48 am
December 12, 2009
Offline
Bruford said
SWRDH?
So we are done here? Just a guess... 😉
Cheers,
Doug
12:09 pm
April 15, 2020
Offline
Norman1 said
According to Canada Deposit Insurance Corporation Act subsection 14(2.3), accrued interest would be paid, up to the date CDIC issues the order to wind-up the financial institution:How interest on deposit to be calculated
14 (2.3) For the purpose of calculating the payment of the [Canada Deposit Insurance] Corporation in respect of any deposit insured by deposit insurance where a winding-up order has been made in respect of the member institution that holds the deposit, the interest accruing and payable in relation to the deposit shall be included only to the date of the commencement of the winding-up.
I was involved in at least 2 winding-up order of trust companies in the 1990's when interest rates were a lot higher than today. One stopped paying interest immediately. The other paid interest up to the time they sent a cheque. Very pleased with CDIC.
Please write your comments in the forum.