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HomeFinanceSave MoneyAre You Unbanked?

Are You Unbanked?

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Many immigrants had suffered financial loss through bank failures in their home country or elsewhere prior to moving to Canada, so they come in with skepticism and are unwilling to part with their money. It is totally understandable. Coming to Canada is no cheap business. For most immigrants, assets and properties were sold to meet up with CIC requirements. Flights aren’t cheap either and as family size increases, so does the financial burden.

Even some of the best economies in the world are not immune to bank failure. Canada has had its fair share too. But not recently. In the last 25 years, no CDIC-member bank has failed in Canada. As a matter of fact, many have suggested that Canada has the best banking system in the world, leading the G7 countries.

Insured deposits are 100% safe. Just know your limits. Know what is covered. In an interview with Peter Routledge, the immediate past President and CEO of Canada Deposit Insurance Corporation (CDIC), The Immigrant Life confirmed that your money is protected even if you have deposits of up to $100,000 with different banks. You could for instance, have a savings account in one bank, a chequing account in another, and GIC in yet a third bank. In the unlikely event that the 3 banks failed, nothing will happen to your money. All your funds would have been insured if you banked with a CDIC member institution.

See the video recording of the interview with Peter Routledge below:

This interview was recorded in June 2021 when Peter Routledge was still serving as President and CEO of CDIC. He left CDIC and is now the Superintendent of Financial Institutions.

The CDIC sticker is proof that the bank is a member institution. Watch out for it on the wall of your bank. Once you see the purple sticker, you are good to go. Walk in and voila! You are covered.

What You Can do as a Depositor

There are 5 easy things to do to guarantee the safety of your money.

  1. Find out if your bank is a CDIC member institution.
  2. Determine if your deposit is eligible
  3. Use CIDC’s online calculator to estimate your coverage based on your peculiarity.
  4. There is a limit on coverage. Check the seven deposit categories here.
  5. Keep yourself up to date with information about deposit protection. Visit the CIDC website. It is user-friendly, with videos, annual reports and even online games that will keep you informed.

When your deposit is covered, you are covered. Immigrants have little to worry about where their deposits are concerned. CDIC has got you covered. Your money is safer in the bank when you keep it in a CDIC-insured bank.

While it is not exactly likely we will see another bank failure in Canada anytime soon, it doesn’t mean that it is guaranteed not to happen. A bank may still fail, however tiny the chance may be. But even as a worst-case scenario, if your bank goes belly up, your money would be safe, up to $100,000 per insured category. Awareness is key. It is the antidote against the virus of misunderstanding. Get informed. Ask questions. Join the community.

Listen to the audio recording of the interview with Peter Routledge here:

This interview was recorded in June 2021 when Peter Routledge was still serving as President and CEO of CDIC. He is now the former President and CEO

Written by Yinka Bakare.

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