Question of the Week: Does CDIC cover investments?

Many people are worried about their investments right now. Which led to one reader wondering if Canada Deposit Insurance Corporation (CDIC) covers investments.

Before we answer that question here’s a quick overview of what CDIC does. The CDIC is a federal Crown corporation that protects eligible deposits at specific financial institutions of up to $100,000 in case of institution failure. The coverage is free and applies automatically to eligible deposits.

So, are investments eligible deposits? The answer for most investments is no. Deposits that are not covered by CDIC include foreign currency, treasury bills, and investments in stocks, bonds and mutual funds. Cryptocurrency deposits are also NOT covered by CDIC.

Deposits that are covered by CDIC include saving and chequing accounts, money orders and drafts, travelers cheques, term deposits and GICs. One important note for term deposits and GICs. These deposits are only covered if their term to maturity is five years or less.

For more information on CDIC visit their website at

While CDIC does not protect investments there are a few protections that are available to investors, including the Canadian Investor Protection Fund (CIPF) and the Mutual Fund Dealers Association of Canada Investor Protection Corporation (MFDA IPC).

First we’ll look at the CIPF. The CIPF protects investors, who are clients of IIROC member firms, from loss due to the insolvency of the firm. CIPF does not provide protection against other types of losses due to risk or fraud. For more information on who is covered by CIPF and the limitations of that coverage, visit the CIPF website at

The MFDA IPC covers investment losses incurred as a result of the insolvency of MFDA member firms. MFDA IPC does not cover losses from market changes, or unsuitable investments. For more information on the MFDA IPC, visit the MFDA website at