The majority of credit unions in Canada are provincially incorporated and insured by provincially constituted entities.
- Credit Union Deposit Insurance Corporation of British Columbia (British Columbia)
- Credit Union Deposit Guarantee Corporation of Newfoundland and Labrador (Newfoundland and Labrador)
- Credit Union Deposit Insurance Corporation of Prince Edward Island (Prince Edward Island)
The Canada Deposit Insurance Corporation insures credit unions that are federally incorporated.
Are Canadian credit union accounts insured?
Protecting Credit Union Member Deposits is a video by DIRF. The Financial Services Regulatory Authority of Ontario manages the Deposit Insurance Reserve Fund (DIRF) (FSRA).
“DIRF” appears in white bold type on the video graphic. To close, a lockanimates. The white strong word “Protecting Credit Union Member Deposits” emerges. In white letters, it says, “Deposit Insurance Reserve Fund (DIRF) administered by Financial Services Regulatory Authority of Ontario (FSRA).”
Did you know that your deposits are guaranteed if you are a member of a credit union?
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Yes, Ontario credit unions are required to pay premiums to the Deposit Insurance Reserve Fund (DIRF).
Black writing on a white backdrop with a left-aligned alignment. A man in slacks catches a bag of cash with his arms at a 90-degree angle.
The DIRF insures credit union member deposits if the credit union goes out of business in Ontario.
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Deposit insurance is provided at no cost to depositors by the Deposit Insurance Reserve Fund, which is administered by FSRA and pre-funded by Ontario credit unions and caisses populaires.
Visualization in video: On a white backdrop, black text is oriented to the left. Hands holding a tablet with a teal background and the DIRF decal.
Members’ deposits in Canadian currency maintained at Ontario credit unions and caisses populaires are insured up to a maximum of $250,000.
Black letters drawn on a white board with the center aligned. A lady in a business suit instructs an audience while pointing to a white board.
Black writing on a white backdrop with a left-aligned alignment. A woman in a business suit speaks via a megaphone.
Black writing on a white backdrop with a left-aligned alignment. Laptop with the home page of the FSRA website.
Are credit unions safe in Canada?
In Canada, credit unions are either federally controlled or provincially regulated. Credit unions, despite their modest size, can be just as safe to do business with as banks. Credit unions are a safe place to purchase a mortgage, borrow, invest, or save because of federal or provincial rules and deposit protection.
All Canadian residents are welcome to join federally licensed credit unions (also known as Federal Credit Unions). Residents of the credit union’s home province, a certain area, or even a specific profession may be targeted by provincially governed credit unions.
The New Brunswick Teachers Association (NBTA) Credit Union, for example, caters to New Brunswick teachers but is also open to the general public. The Ontario Provincial Police Association (OPPA) Credit Union, on the other hand, is solely open to OPP officers, OPPA members, and their family members.
What is a CDIC member institution?
Deposit-taking institutions regulated by the federal government, such as banks, trust companies, loan companies, and federal credit unions, are CDIC members.
Can I get information about CDIC at my financial institution?
CDIC member institutions are provided booklets to exhibit in their branches, and are required by law to display the CDIC sticker on each retail branch’s door and on their websites. CDIC coverage information can also be found on the websites of member institutions and in mobile banking apps. Consult the display specifications.
I don’t see my financial institution’s name in CDIC’s list of member institutions. Does this mean my deposits are not protected by CDIC?
Some CDIC members have subsidiaries or trademark entities that are not separate members but may be covered by their parent company’s coverage. The province’s deposit insurer, not the CDIC, protects provincial credit unions. If your financial institution isn’t on our list of members, you can contact CDIC to ask about deposit insurance.
Are all subsidiaries covered by CDIC?
No, a member institution can possess subsidiaries that provide a variety of financial products and services, such as investment, brokerage, and insurance firms, as well as trust and loan organizations. They are not necessarily all CDIC members, even if they are owned by the same group or parent firm. The list of CDIC’s member institutions may be found here.
Are credit unions and caisses populaires covered by CDIC?
Credit unions and caisses populaires are not allowed to join the CDIC because they are governed by provincial rules. They can apply to continue operating as federal credit unions, and if their application is approved, they will join the CDIC.
What happens to coverage if two CDIC members merge?
If two or more CDIC member institutions merge, insured deposits placed at each institution prior to the merger are still insured independently up to $100,000 per depositor per category, just as they were before the merger. Any withdrawals from those distinct deposits, or as term deposits mature, lower the amount of separate coverage (or are redeemed). The amount of coverage for any deposits made with the entity that arose from the merger is determined by the total volume of deposits you made at the institutions prior to the merger.
- If your existing deposits (i.e., the total of deposits you held with the entities immediately before the merger) total $100,000 or more, any new deposits you make at the institution after the merger will exceed the $100,000 ceiling and will not be guaranteed by CDIC.
- If the amount of your current deposits is less than $100,000, any additional qualifying deposits you make at the amalgamated institution will be added to those previously made deposits, and the total will be insured up to $100,000.
I have deposits in different branches of the same financial institution. Are they separately covered?
Deposits placed at multiple branches of the same CDIC member institution are not insured separately.
Are my deposits in U.S. subsidiaries of a Canadian financial institution covered by CDIC?
Deposits at a Canadian financial institution’s U.S. subsidiaries are not covered by the CDIC, but they may be covered by the Federal Deposit Insurance Corporation of the United States (FDIC).
Is my money safe in a credit union?
Why are credit unions considered to be safer than banks? Credit unions, like banks, are federally guaranteed by the Federal Deposit Insurance Corporation (FDIC), making them just as safe as banks. The NCUSIF provides $250,000 in coverage for single ownership accounts to all members of federally insured credit unions.
Is money in credit unions insured?
Credit unions that are federally insured provide a secure environment for members to save money. The National Credit Union Share Insurance Fund protects all deposits in federally insured credit unions, with deposits guaranteed up to $250,000 per individual depositor. At a federally insured credit union, members have never lost a dime of their guaranteed savings. Consumers can find more information on NCUA share insurance coverage at MyCreditUnion.gov.
How much money is insured in a bank account Canada?
- The Canadian Deposit Insurance Corporation (CDIC) is an independent crown corporation that insures customer deposits held by member institutions.
- Deposits in specific categories, such as checking and savings accounts, certain investments, foreign currency accounts in Canada, registered retirement accounts, and other registered products, are covered up to $100,000 per depositor.
- Mutual funds, ETFs, money market funds, digital currencies, cryptocurrencies, and treasury bills are not covered by the CDIC.
- Major national banks, federal credit unions, Canadian branches of some international banks, and non-traditional banks are all members.
Are credit unions in Canada federally regulated?
Credit unions in Canada prioritize individuals over everything else. Whatever your hopes, dreams, needs, and desires are, we prioritize them. Banking is only one of the ways we may assist you in achieving your goals.
We provide traditional banking services
Credit unions are financial cooperatives that provide a broad range of services. We offer checking and savings accounts, as well as mortgages, business loans, and investment advice, just like other financial institutions. Are you interested in starting a registered savings plan? Do you want to invest in mutual funds? Do you want to do your banking online? Credit unions also provide this service.
We work for you, our shareholders
Because credit unions are owned by their members those who bank with them your bottom line is also our bottom line. All members have a role in how their credit union runs, and they can vote democratically for the board of directors.
We provide access to thousands of ding-free ATMs
Through the THE EXCHANGE and ACCULINK networks, credit union members have access to thousands of DING-FREE ATMs across Canada. It’s a network of ATMs that outnumbers most banks!
We are regulated
In Canada, credit unions are either provincially or federally governed. Individual credit unions are regulated, and they are obliged to satisfy standards and collaborate with government organizations to guarantee they are among the safest financial institutions in the country.
Your deposits are protected
All provinces have deposit guarantee regimes that give credit union members with deposit protection that is on par with, if not better than, that provided by the big banks. In other provinces, coverage is completely unrestricted.
We provide award-winning service
For the 14th year in a row, Canada’s credit unions have placed first among all financial institutions in overall Customer Service Excellence. We’re good at a lot of things, but we’re especially good at prioritizing you.
What are the risks of a credit union?
Internal risk variables differ from external risk factors in that credit union management have some control over them. External danger factors are beyond their control.
Natural disasters, exchange fluctuations, interest rates, and theft are all external risk concerns that credit unions must contend with.
Internal hazards include internal fraud, legal and regulatory noncompliance, data breaches, and injuries to employees and visitors.
What are the disadvantages of credit unions?
- You must join the club. Because most credit unions are made up of people who share a common interest, such as a workplace or industry, you must meet certain criteria to join and use the products and services. However, membership requirements are frequently relaxed, and it may be as simple as placing $5 into a savings account to become a member.
- You might be able to get a better deal somewhere else. You might be able to get a greater APY on a share certificate or savings account, as well as a lower rate on an auto or other sort of loan, with online-only banks because they don’t have to operate branches.
- Accessibility is restricted. Traditional banks have more branches than credit unions. Unless your credit union is part of a shared branch network and/or a big ATM network like Allpoint or MoneyPass, a credit union may not be close to where you live or work, which could be an issue.
- Not every credit union is the same. Smaller credit unions and banks might not have as many lending and deposit options as larger credit unions and banks. They may also lack cutting-edge technology like internet banking, mobile banking, and peer-to-peer payment networks like Zelle.
Who governs credit unions in Canada?
Financial Consumer Agency of Canada (FCAC) The Bank Act is the major piece of legislation that governs Canadian banks and federal credit unions.