How do I know if my deposit is safe?

Recently, I have had a lot of questions about the safety of investments. This week I will talk about term deposits. Deposit insurance is available for qualifying deposits. Banks, Trust Companies and Mortgage and Loan Companies must be members of the Canadian Deposit Insurance Corporation (CDIC) or Credit Union Depositor Protection Programs (CUDIC).

Deposits are insured up to $100,000 with banks and trust companies and $100,000 for credit unions. Life and Health Insurance Companies can be members of the Canadian Life and Health Insurance Compensation Corporation (CompCorp) which insure deposits up to $60,000. Published listings of these member institutions may change from time to time due to corporate name changes, buy-outs or amalgamations. There are limits to insurance protection and not all deposits are insured. Certain terms and conditions may apply. For example, the maximum deposit term covered by CDIC is five years; there is no such limitation under CompCorp. For detailed information on deposit insurance coverage contact your financial institution.

What is a deposit broker?

Deposit Brokers are independent retailers of financial products and services specializing in “guaranteed” investment products such as GICs, term deposits, and Canadian Savings Bonds. They work diligently to provide you with the best, independent advice on information affecting your deposit product needs. A deposit broker maintains daily information on current interest rates, helps you achieve the best possible return on your deposit investment, and works on your behalf to find the best investment available from all financial institutions including trust companies, banks, insurance, and fund companies. And best of all, there is no fee for this service!

What type of financial products can I invest in through a deposit broker?

Most Deposit Brokers are full-service investment advisors offering a complete range of financial products and services including:

Term Deposits, Guaranteed Investment Certificates, Short Term Deposits,
Cashable Certificates, RRSPs RRIFs, LIFs, Annuities, Mutual Funds, Life Insurance.

You can get the best rates and widest selection of investment options at no cost to you by using the services of a Deposit Broker. Deposit Brokers, unlike most investment advisors, have access to large volume, deposit product selections. Financial Institutions use the Deposit Brokerage channel to offer these deals which can then be offered to investors efficiently and at top returns, completely free of fees or commission.

To find out more contact your financial advisor.


  1. Kathleen

    The information on your site regarding deposit insurance for BC credit unions is not correct. In 2008, the BC government adopted amendments to the Financial Institutions Act to introduce unlimited deposit insurance protection of all deposits with British Columbia’s credit unions. So, there you go. I’m looking forward to seeing the information corrected in your “How do I know if my deposit is safe?” article.

    Cheers, Kathleen

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