Banks rarely fail in Canada. In fact, since Parliament created the Canada Deposit Insurance Corporation (CDIC) more than 50 years ago, there have been 43 failures of its member financial institutions. That may seem like a lot in a country where most of us believe that it can’t happen, but the last one occurred 20 years ago.
The important thing to remember is that CDIC protected depositors in each of those instances, and no one lost a single dollar under CDIC protection. But how does deposit insurance work? There are a few things you should know if you are concerned about the safety of your hard-earned money:
- Is my financial institution a member of CDIC?
- What is an insured eligible deposit?
- How do I get my money back if my bank fails?
Answers to these questions are available from your financial advisor where you bank or invest, on CDIC’s website, or by contacting CDIC.
Know that, CDIC is here for you, protecting your eligible deposits at our member financial institutions to a maximum of $100,000, per separate insured category, in the event of a failure. Coverage is free and automatic and customers never have to apply for it. If there’s a failure and deposits are insured, no claim needs to be filed, payment is automatic. Banks and other financial institutions in Canada seldom fail, but it has happened and could happen again.