above to find out how Fiscal Agents can assist
you in various investment areas.
Use this link to connect you directly to content related to specific areas
of our site.
2005: CDIC RAISES LIMIT TO $100,000! Yes,
it's finally happened - The CDIC deposit insurance limit of $100,000 is
now in force. Royal Accent was given to Bill-C48 on June 29th, bringing
the increased coverage into play and retroactively from February 23, 2005
- thus adding some $40,000.00 more insurance for each of your CDIC eligible
guaranteed investments. Click
here for a bulletin with the details.
Deposit insurance, for banks and
trust companies, based on its current coverage limit is not providing
enough value for depositors. Most people who purchase GIC type investments
are aware that the maximum basic protection for eligible deposits covered
by Canada Deposit Insurance Corporation (CDIC) is $60,000 per depositor
per member institution. What they might not be aware of however is that
this $60,000 limit was brought into place in 1983
Over 20 years
ago. The limit prior to that time was $20,000. During the past 21 years
inflation has decreased the buying power of a dollar by about 56% based
on changes in the consumer price index. Inflation has also reduced the
value of CDIC coverage by this same percentage. The $60,000 coverage limit
of 1983 is now worth about $34,000 in today's dollars.
eroded value of CDIC insurance has forced some depositors to use multiple
registrations, such as adding other family member's names to some of their
investments, in order to keep all of their deposits insured. This practice
might insure a deposit but it also results in a sharing of ownership,
which may not be in the best interest of the original owner. A larger
more practical limit for CDIC insurance would reduce the need to use such
Many provinces have realized the
need for higher coverage limits for provincially insured deposits, such
as those purchased from credit unions, and have much higher limits than
CDIC. For example, the provincial deposit insurance limit is $100,000
in Ontario, $250,000 in Nova Scotia and unlimited in Alberta. If the provinces
can provide a higher limit for their credit unions why can't the federal
government bring its coverage for banks and trust companies in line with
We at Fiscal Agents feel that CDIC
coverage should be increased to $100,000.00 at a minimum and un-limited
for registered plans. This probably won't happen anytime soon however
without a lobbying effort on the part of the public. We are therefore
recommending that all concerned either write directly to CDIC or complete
one of our pre-printed form letters available via the links below, forwarding
it to our offices which we will submit in bulk to the CDIC. The respective
addresses are as follows:
50 O'connor Street, 17th Floor
P.O. Box 2340, Station D
Fax: (613) 996-6095
25 Lakeshore Rd. W.
Fax: (905) 844-8552
Below are links to the pre-printed
letters we have made available suitable for mailing or sending via fax,
in Adobe PDF format. Each are interactive and can be filled out and sent
through Adobe Reader software. Simply click the blank fields on the letter
and type. When complete, use the Send Mail option in the file menu, and
use the address email@example.com.
For any questions that you may have
about current CDIC policies please contact them directly at 1-800-461-2342.
You can also contact our office at 905-844-7700 if you have any
questions about deposit insurance coverage on your existing investments.
of Canadian Deposit Insurance Agencies
In the table below are the contact information and dollar amount of coverage
provided by various deposit insurance agencies across Canada. To review
each deposit insurer use the links provided.
Deposit Insurance Corporation
Union Deposit Insurance Corporation of B.C.
Credit Union Deposit Guarantee Corporation
Credit Union Deposit Guarantee Corporation
Union Deposit Guarantee Corporation (Manitoba)
Corporation of Ontario
Deposit Insurance Board (QDIB)
Union Deposit Insurance Corporation (PEI)
(100% registered funds)
Scotia Credit Union Deposit Insurance Corporation
Brunswick Credit Union Deposit Insurance Corporation
and Labrador Credit Union Deposit Guarantee Corporation
Canadian Life insurance issuers
Our efforts in this matter have been recognized recently by
various news outlets, online and in print. Below are a collection of these
CDIC have a Deposit insurance
calculator that will guide you through a series of questions about
the deposits for which you wish to calculate deposit insurance coverage.
This process should take approximately 10 to 15 minutes. The calculator
will then produce a report showing your deposit insurance coverage based
on the information you provide.