CDICs

CDICs, or the Canadian Deposit Insurance Corporation, is a federal Crown corporation in Canada that provides deposit insurance for deposits held at member financial institutions. It was established in 1967 by the Canada Deposit Insurance Corporation Act to promote stability in the financial system and protect depositors. The corporation maintains a Deposit Insurance Fund and uses it to reimburse insured deposits if a member institution fails.

CDIC coverage details: Insured deposits include chequing and savings accounts, term deposits such as GICs, and certain registered accounts held at CDIC member institutions. Coverage is up to 100,000 Canadian dollars per depositor per insured category at each member institution. Ownership structures matter; separate categories apply for different ownership types, including singles and joint accounts. Not all products are insured; investments in mutual funds, stocks, bonds, and other non-deposit products are not covered.

Operations and governance: The fund is built from premiums paid by member institutions and from investment income. CDIC has a governance structure with a board of directors and is subject to oversight by the federal government under the Canada Deposit Insurance Corporation Act. In the event of a member failure, CDIC coordinates resolution and pays eligible deposits up to the limit, subject to the fund’s capacity. The corporation operates independently but reports to Parliament through the Minister of Finance and administers policy in line with federal financial stability objectives.