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you in various investment areas.
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deposit protection needed for registered retirement investments
All guaranteed registered retirement investment products held at CDIC
member financial institutions - whether RRSPs, RRIFs or LIFs - should
carry 100% deposit insurance protection.
Investors conscious of deposit insurance limitations and sensitive to
interest-rate returns often choose small or mid-sized institutions for
higher retail deposit rates on their retirement deposit accounts.
Canada Deposit Insurance Corporation (CDIC) coverage protects investment
deposits to a maximum of $100,000 per individual, per institution. Joint
registration is only available for non-registered accounts.
Seniors are becoming concerned that when they are widowed, retirement
plan balances transferred to the surviving spouse's name could exceed
the insurable value of CDIC deposit protection.
"Over the last few decades, we've seen retiring couples refocus
their portfolios towards income-producing investments, choosing secure
fixed-rate investments such as GICs or long-term annuities," says
Martin Kosterman, a retirement income specialist, investment fund consultant
and senior insurance advisor at Fiscal Agents.
The sometimes roller-coaster effect found in the equity markets is less
palatable for seniors, as other lifestyle and time-of-life realities unfold.
"Choosing the simplicity and protection of fixed-income or conservatively
managed accounts is common practice when security outweighs growth,"
Most retirees and pre-retirees have recent memories of dealing with their
own parents' financial needs, with liquidity and income requirements playing
major roles. With such valuable insights, better planning is being undertaken
for their own accounts.
Over time, these individuals have benefited from sound investment planning
and accumulated RRSP-type portfolios in excess of the deposit insurance
limits. To maintain financial security, additional deposit protection
is now needed.
Fifty percent of provinces have realized the need for higher coverage
limits for provincially insured retirement deposits, such as those purchased
from credit unions, and have much higher limits than CDIC. For example,
Alberta, Saskatchewan, Manitoba, PEI, and New Brunswick provincial deposit
insurance protection is unlimited at 100%, wherein $100,000,00 B.C, Quebec
and Nova Scotia and Newfoundland at $250,000. Ontario provides $100,000.00
per registered account. 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 current needs?
What we've seen in the past is that your voice has made the difference - CDIC
Coverage was $60,000. with the help of a investors petition it now stands at
$100,000 Follow this link to read about that
We at Fiscal Agents feel that CDIC coverage should be increased to 100% 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 the Finance Minister Jim Flaherty or
complete one of our preprinted form letters available via the links below, forwarding
it to our offices which we will submit in bulk to the Finance Minister. The
respective addresses are as follows:
|James M. Flaherty
Minister of Finance
140 O'Connor Street
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.
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.
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