U.S. dollar bank deposits are not insured in Canada
(NC) – If you're a snowbird, or a frequent traveller to the United States, pay special attention to your deposit protection, say specialists in this field.
November is Financial Literacy Month and it's also the time of year when retirees start to travel south. To smooth this travel, many snowbirds open a U.S. dollar account here in Canada – but if you do that, be aware those deposits would not be protected by CDIC if that bank failed.
“Many people don't realize that foreign currency accounts, including those in U.S. dollars, are not covered by Canada Deposit Insurance Corporation,” says Brad Evenson, CDIC's communications director. “Understanding deposit insurance is an important aspect of financial literacy, particularly for people like retirees who wouldn't have time to make up losses in the event their bank failed.”
She notes that banks can go under in Canada: 43 have failed since CDIC's creation in 1967. “Even during those failures, depositors did not lose a single insured dollar.”
“You've worked hard for your money,” Mr. Evenson points out. “The best way to protect it is to get informed.”. Take a look at the workings of deposit insurance in three videos available on YouTube (CDICchannel).
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