New app simplifies details of deposit insurance
(NC) Deposit insurance can be complicated. It isn't always clear which accounts are covered, or for how much.
To simplify matters, Canada Deposit Insurance Corporation (CDIC) has introduced a new tool that makes it easier to estimate. Called the CDIC Estimator, this app, believed to be the first of its kind, is now available for download from Apple, Android, Windows and Blackberry stores.
The Estimator is easy to use and the information you provide is not linked to your identity or accounts. Begin by picking your financial institution from CDIC's list of members.
Then choose the type of deposit. You'll be asked to select from a list including savings accounts, chequing accounts, term deposits with maturities of five years or less, money orders, certified cheques and bank drafts. It will let you know if the type of deposit you have selected is ineligible for CDIC coverage; these include mutual funds, stocks or bonds.
Next, select the category in which your deposit is held. Insured categories include accounts in one name, joint deposits, trusts, RRSPs, RRIFs and TSFAs.
Finally, you'll be asked to input a dollar amount.
When you're finished, the app will indicate how much deposit insurance coverage you are likely to receive in the event of a bank failure.
Eligible deposits up to $100,000 per insured category are covered at each member institution. That means you can be insured for more than $100,000 by having your deposits in separate categories, or in different financial institutions.
Here's an example: Bob has an RRSP and a TFSA at ABC Bank, each worth $75,000, as well as a one-year GIC at XYZ Bank worth $90,000. Bob is insured for a total of $240,000 ($75,000 + $75,000 + $90,000).
More information can be found online at cdic.ca.
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