749 replies to this topic

[Mike K.]

While I get the point you are making here Mike, i.e ascertaining and collating a list of financial institutions where you can deposit funds, as I'm sure you are well aware a credit union is definitely not a bank.

There are various operating and service/product offering differences between the two but for the purposes of this thread, in Canada while both credit unions and banks are protected by deposit insurance, banks are covered by the CDIC as mentioned a couple of times above, credit unions are covered by provincial deposit insurance providers.

I’m just showing the local competition.

Credit unions shadow the CDIC, so it’s a wash in any event. Like the stress test for mortgages. That was a CDIC requirement, that credit unions immediately implemented.

[phx]

 

If you bank with a CDIC member institution, your eligible deposits include savings accounts, term deposits and GICs, all of which are automatically covered up to $100,000.

 

I believe you are covered up to $100,000 in total. It’s not $100,000 per account, term deposit, GIC, etc.

[Mike K.]

It’s a laughably small amount in Canada. You can lose everything, because the experts turn out not to be experts.

The US has over 3x the protection we do here.

[Victoria Watcher]

I believe you are covered up to $100,000 in total. It’s not $100,000 per account, term deposit, GIC, etc.

 

 

https://www.cdic.ca/...g-your-deposit/

 

[lanforod]

And CDIC does cover some credit unions: National ones, like Coast Capital.

[Victoria Watcher]

And CDIC does cover some credit unions: National ones, like Coast Capital.

 

https://www.cdic.ca/...g-your-deposit/

 

[AllseeingEye]

I believe you are covered up to $100,000 in total. It’s not $100,000 per account, term deposit, GIC, etc.

 

Entirely correct I don't think I said or inferred otherwise but my bad if it was construed that way. Hundred grand, all in.....

[lanforod]

It is broken up by type somewhat.

[lanforod]

ASE and phx you two should just go to Cidc.ca instead of speculating lol. VW already posted the screenshots correcting you

[AllseeingEye]

ASE and phx you two should just go to Cidc.ca instead of speculating lol. VW already posted the screenshots correcting you

 

I wasn't 'speculating': the vast majority of CU's in this country are not federal credit unions. They are smaller regional entities in general, with foot prints in their respective provinces only for the most part. Therefore my statement stands generally with this small amendment if it makes your day - *credit unions with only very,very few exceptions (two of them) are incorporated in and covered by provincial insurers.

 

That changed in the case of CCU when it became a truly federal entity five years or so ago, and it was if I recall correctly only the second CU to attain that status in the country, the other being Caisse Populaire which achieved the distinction a couple of years previously.

 

*Satisfied now? Here is your list BTW of provincially-mandated insurers which cover the vast majority of CU's in the country, CCU and the Caisse excepted:

 

Alberta – Credit Union Deposit Guarantee Corporation (Alberta)
British Columbia – Credit Union Deposit Insurance Corporation (British Columbia)
Manitoba – Deposit Guarantee Corporation of Manitoba
New Brunswick Credit Union Deposit Insurance Corporation
Newfoundland and Labrador – Credit Union Deposit Guarantee Corporation (Newfoundland and Labrador)
Nova Scotia Credit Union Deposit Insurance Corporation
Ontario – Financial Services Regulatory Authority of Ontario[10]
Prince Edward Island – Credit Union Deposit Insurance Corporation (Prince Edward Island)
Saskatchewan – Credit Union Deposit Guarantee Corporation (Saskatchewan)

[Victoria Watcher]

Entirely correct I don't think I said or inferred otherwise but my bad if it was construed that way. Hundred grand, all in.....

You said $100k, all in.

But you can actually have coverage up to $800,000 over different account types. As per my purple graphic several posts up.

Edited by Victoria Watcher, 12 March 2023 - 02:00 PM.

[Victoria Watcher]

Canada's top banking regulator takes temporary control of Silicon Valley Bank's Canadian branch

https://www.cbc.ca/n...asury-1.6776510



"I want to be clear: the Silicon Valley Bank branch in Canada does not take deposits from Canadians, and this situation is the result of circumstances particular to Silicon Valley Bank in the United States."

"The superintendent took this action to preserve the value of the assets held at the branch," the statement said.

The Office of the Superintendent of Financial Institutions (OSFI) said SVB has operated in Canada since February, 2019, as a foreign bank branch.

Edited by Victoria Watcher, 12 March 2023 - 03:26 PM.

[lanforod]

I’m satisfied you corrected yourself to include the exceptions (not exactly minor exceptions!)…

[AllseeingEye]

/\ So very happy you approve.....I'll sleep better tonight no doubt. But yeah they are 'minor' exceptions considering there are all of two federal CU's in the country out of a total of 400+. 

[Mike K.]

Ok, we’ll I’ve learned something here.

So in the US, is that $250,000 inclusive of all investment vehicles in a bank, or is that just the chequing account/cash total?

[Victoria Watcher]

Per ownership category: Ownership category simply refers to who owns the account. The easiest distinction is between single, meaning an account owned by just one person, and joint, meaning an account shared by two or more people. Other kinds of ownership categories include certain retirement accounts, such as IRAs, trust accounts and employee benefit plan accounts.

There’s separate coverage for money that’s in different categories of ownership. So a person who has multiple accounts at an insured bank could qualify for more than $250,000 in coverage if their funds are in accounts that are in different ownership categories and other requirements are met. And if an account is co-owned by two people, for example, that account is insured up to $250,000 per person, for a total of $500,000.


https://www.nerdwall...ship-categories

Edited by Victoria Watcher, 13 March 2023 - 07:06 AM.

[Victoria Watcher]

Here is the bottom line. If you have hundreds of thousands of dollars of cash, spend a few hours initially and many minutes monthly spreading it around and monitoring it.

Seeing as the average person has less than $45,000 tucked away, it’s not an issue for most.

Edited by Victoria Watcher, 13 March 2023 - 07:10 AM.

[Barrrister]

To state the obvious, though, this is insurance per institution. If you have a hundred at TD and a hundred at Scotia (even in the same category) both are covered up to a hundred. 

[Victoria Watcher]

Also if TD and Scotia fail in the same week the country and likely the world is doomed. And your money is not your biggest worry.

[Mike K.]

That’s tricky. Sell one house as a retiree, and you’re looking for a dozen banks to split your money across. Not good in an era when banks have collapsed multiple times since the turn of the century. I bet WAMU caught some Victorians off guard. I still recall the WAMU chief flying his kid in to Brentwood school with a chopper (a cousin attended school with the kid). That stopped when the bank dieded.

The $100k rate for liquid assets is too small to be practical today.