Deposits
A deposit, as it relates to banking in Canada, is often used to refer to the placement of money into a regular savings or chequing account by an individual. There are actually a wide variety of deposits, and the rules that govern them are dependent on what type of financial vehicle is being used. There are institutions that provide protection for Canadian banking customers and investors to ensure that their funds are kept safe.
You may not have considered what would happen if your bank were to fail. While it is unlikely that one of the large Canadian banks would fail given the stability of the Canadian financial industry, it remains possible and, in fact, banks have failed in Canada before. You may be comforted to learn that if your bank is a member of the CDIC or Canada Deposit Insurance Corporation, some or all of your funds may be insured against such an occurrence.
Spotlight on Deposits
Print Your Own Deposit Slips Online
If you print your own deposit slips online, you can take advantage of all the conveniences offered by this method. Just so we're on the same page, deposit slips are those little forms on which you list any cheques, cash or other funds being deposited in your bank account.
When you make ... Continue Reading »
Print Your Own Deposit Slips Online
If you print your own deposit slips online, you can take advantage of all the conveniences offered by this method. Just so we're on the same page, deposit slips are those little forms on which you list ...
About Deposits
The Canada Deposit Insurance Corporation is neither a bank nor an insurance company, despite the implications of its name. It is actually a Crown Corporation that was created by an act of parliament to protect Canadians that have made deposits at Canadian banks. If you are using one of the big five Canadian banks, all of them are members of CDIC. When you direct funds to one of these CDIC members, you have the security of knowing that, if you have certain types of accounts, they will be protected.
If you want to know how much of your savings are insured by the CDIC, the easiest way might be to ask your bank. You can also do some research yourself, and you will find that savings and chequing accounts are insured. There is also security for guaranteed investment certificates and term deposits that have a maturity date that is no longer than five years in the future. There are a number of other vehicles that are covered by the insurance that include retirement savings products, funds held in trust, money orders, certified cheques and debentures, to name just a few. If you discover you have deposited funds that are not insured, you can usually direct your bank to move them into an account that will be covered by CDIC.
The CDIC will insure amounts up to $100,000. It has been put in place by Parliament in Canada for your protection, so it makes sense to know a little bit about how it operates and whether or not it is currently protecting you.