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Ontario|Financial InstitutionsFinancial Institutions 286 If your bank, trust or loan company fails: Canada Deposit Insurance Corporation (CDIC)
If you have deposited money in a bank, trust or loan company that is a member of the Canada Deposit Insurance Corporation, you may be eligible for some compensation if your financial institution fails. Whether you receive compensation will depend on whether your financial institution is a member of the Canada Deposit Insurance Corporation and the type of deposit you have made.
- How to determine if your financial institution is a member of CDIC
Banks, trust, and loan companies that are members of the Canadian Deposit Insurance Corporation known as CDIC usually display a sign in the branch or office that identifies them as a member institution. Most major banks and trust companies are insured by CDIC, however you can obtain a full list of CDIC member institutions by calling CDIC or referring to one of its brochures. The number is listed in the Blue pages of the telephone book.
- What type of deposits are eligible for coverage?
CDIC insures several types of deposits, including: savings and chequing accounts, term deposits, including GICs, money orders and drafts, certified drafts and cheques, and traveler's cheques that are issued by institution members. All eligible deposits must be in Canadian currency. Term deposits must be payable no later than five years after the date of deposit to be eligible for coverage. CDIC does not insure: foreign currency deposits, term deposits with a maturity of more than five years from the date of deposit, debentures issued by chartered banks, bonds and debentures issued by governments and corporations, Treasury bills, and investments in mortgages, stocks, and mutual funds.
- What type of coverage does CDIC provide?
CDIC provides a maximum of $60,000 per depositor in each member institution. CDIC also provides separate protection for joint deposits, deposits held in trust, and deposits in RRSPs and RRIFs. Joint deposits are insured separately from accounts in your own name, to a maximum of $60,000. The records of the financial institution must indicate that the account is owned jointly. Trust deposits are also insured separately from accounts in your own name. The records of the financial institution must indicate that the account is held in trust and it must identify the beneficiaries. Each beneficiary's portion of the trust is insured up to a maximum of $60,000.
- What if member institutions merge?
If one member institution merges with another member institution, and if the result is that your total insurable deposits with the new member institution exceed $60,000, your insured deposits in savings and chequing accounts in each institution will continue to be insured until they are withdrawn. Insured term deposits will be insured until they mature. However, if you make new deposits at the merged institution, your deposits will not be insured above the maximum of $60,000.
- How to make a claim
If your financial institution fails, you do not have to file a claim with CDIC. They will contact you and inform you of how and when you will receive payment. You will usually receive your payment within two months.
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