Frequently Asked Questions
The following represent frequently asked questions regarding DICO deposit insurance coverage.
- How will I know that my credit union is insured by DICO?
- In the unlikely event my credit union ceases operations, are my deposits still insured?
- How do I apply for deposit insurance?
- How can I achieve maximum coverage?
- If I have deposits in separate branches of the same credit union, is each deposit insured separately?
- If I have deposits in different credit unions, are deposits in each insured separately?
- Are my business / corporate accounts covered?
- If I open two deposit accounts, one John H. Jones and the other J. Jones, are both accounts insured separately to a maximum of $100,000?
- What deposit insurance coverage is provided on trust accounts?
- Are term deposits with terms over 5 years insured?
- Are my mutual funds insured by DICO?
- Examples
How will I know that my credit union is insured by DICO?
All active credit unions in Ontario are required by legislation to be insured by DICO. Each of these institutions is required to display the official DICO membership sign, which confirms that deposits are insured. In addition a listing of all insured credit unions is provided on DICO's Web site.
In the unlikely event my credit union ceases operations, are my deposits still insured?
Your deposits will continue to be insured by DICO in accordance with the specified coverage limits.
How do I apply for deposit insurance?
It is not necessary to apply for deposit insurance. Deposit insurance, to a maximum of $100,000 applies automatically to the combined total of all deposits, plus $100,000 for deposits in each individual registered savings plan.
How can I achieve maximum coverage?
By planning your investment portfolio with an understanding of deposit protection, you can achieve maximum coverage for your combined savings. For example, if you and your spouse had individual deposit accounts, plus a joint account you could achieve coverage up to $300,000 (maximum of a $100,000 on each account).
If I have deposits in separate branches of the same credit union, is each deposit insured separately?
No. The deposit insurance coverage applies to the combined total of your deposits in any one member credit union.
If I have deposits in different credit unions, are deposits in each insured separately?
Yes. Deposit insurance coverage limits are applied separately to the deposits held in each credit union.
Are my business / corporate accounts covered?
Yes. Separate deposit insurance coverage up to a maximum of $100,000 is provided for each business that holds an account or accounts at a member credit union. Businesses include corporations, partnerships and associations.
If I open two deposit accounts, one John H. Jones and the other J. Jones, are both accounts insured separately to a maximum of $100,000?
No. Each depositor of a credit union is limited to a maximum of $100,000 coverage on their deposit accounts.
What deposit insurance coverage is provided on trust accounts?
Each trust account is insured separately from any individual deposit accounts of the trustee, provided that the interest of the beneficiary is disclosed upon the records of the credit union. Each unique trust account of a different trustee and beneficiary combination is insured to a maximum of $100,000. In addition, provided that the interest of each beneficiary in the deposit is disclosed upon the records of the credit union, then the interest of each beneficiary is separately insured to a maximum of $100,000.
Are term deposits with terms over 5 years insured?
Yes. DICO insures Term Deposits regardless of the term of the deposit.
Are my mutual funds insured by DICO?
No. Only deposits are insured.
Examples - Basic Coverage
DICO provides deposit insurance protection for each individual depositor up to $100,000. The maximum basic coverage applies to the total of all insurable deposits held at the same institution.
Basic deposit insurance protection applies to savings accounts, chequing accounts and term deposits including guaranteed investment certificates.
| Example 1: | ||
| DICO would provide full deposit protection if you held the following deposits in a member credit union. | ||
| Deposit | Amount | |
| Savings account | $5,000 | |
| Chequing account | $1,000 | |
| Term deposit | $28,000 | |
| Total deposits at this credit union | $34,000 | |
| Total deposits covered by DICO | $34,000 | |
| Example 2: | ||
| DICO would provide deposit protection up to the $100,000 limit, if you held the following deposits in a member credit union. | ||
| Deposit | Amount | |
| Savings account | $25,000 | |
| Chequing account | $4,000 | |
| Term deposit | $85,000 | |
| Total deposits at this credit union | $114,000 | |
| Total deposits covered by DICO | $100,000 | |
| Uninsured deposits | $14,000 | |
| Note: Deposits in the name of an individual over $100,000 are not insured. | ||
| Example 3: | ||
| DICO would provide deposit protection for $45,000, if you held the following deposits in a member credit union. | ||
| Deposit | Amount | |
| Savings account (Canadian Dollars) | $10,000 | |
| Chequing account (U.S. Dollars) | $5,000 | |
| Term deposit | $35,000 | |
| Mutual fund investments | $10,000 | |
| Total deposits at this credit union | $60,000 | |
| Total deposits covered by DICO | $45,000 | |
| Uninsured deposits | $15,000 | |
| Note: Mutual fund investments and foreign currency deposits are not insured. | ||
Joint Deposits
DICO provides separate deposit insurance protection for deposits held jointly with other members.
DICO provides protection for all deposits held by the same joint owners up to $100,000. The $100,000 limit applies to the joint owners collectively, NOT to each individual.
If you have eligible joint deposits with another person or other joint deposits with a different joint owner(s) at the same member institution, these would be insured separately from each other to the $100,000 limit.
Example:
DICO would provide full deposit protection for all deposits for each individual member plus the deposits held in joint names if you held the following deposits in a member credit union.
| Deposit | Amount | |
| Individual #1 | ||
| Savings account | $35,000 | |
| Chequing account | $5,000 | |
| Total deposits of individual #1 | $40,000 | |
| Total deposits covered by DICO | $40,000 | |
| Individual #2 | ||
| Savings account | $35,000 | |
| Chequing account | $1,000 | |
| Total deposits of individual #1 | $36,000 | |
| Total deposits covered by DICO | $36,000 | |
| Joint Account (Individual #1 and /or Individual #2) | ||
| Savings account | $24,000 | |
| Chequing account | $1,000 | |
| Term deposit | $35,000 | |
| Total deposits held in joint names | $60,000 | |
| Total deposits covered by DICO | $60,000 | |
Deposits Held in Trust
DICO provides separate deposit insurance protection for deposits held in trust for other beneficiaries.
Deposits held in trust must clearly indicate the beneficiaries to be eligible for separate deposit insurance protection up to $100,000. So long as each beneficiary is properly designated, each beneficiary is entitled to the maximum insurance coverage. The following information should be available on the records of the trust account:
- the fact that the deposits are held in trust;
- the name and address of the trustee (s);
- the name and address of the beneficiary, or each beneficiary if there are two or more;
- if there are two or more beneficiaries, the percentage or amount of each beneficiary's interest in the trust;
These deposits are also insured separately from deposits held by any of the beneficiaries in his or her own name. If there is more than one beneficiary of an eligible deposit that is held in trust, the amount or percentage of each beneficiary's interest in the deposit must be disclosed on the member institution's records.
Example 1:
DICO would provide full deposit protection for all deposits in your name plus all the deposits held in trust, if you held the following deposits in a member credit union.
| Deposit | Amount | |
| Your name | ||
| Savings account | $15,000 | |
| Chequing account | $1,000 | |
| Term Deposit | $50,000 | |
| Total deposits in your name | $66,000 | |
| Total deposits covered by DICO | $66,000 | |
| Trust account set up by you for an individual beneficiary | ||
| Term deposit | $55,000 | |
| Total deposits in trust | $55,000 | |
| Total deposits covered by DICO | $55,000 | |
Example 2:
DICO would provide full deposit protection for all deposits in your name plus all the deposits held in trust for each of the beneficiaries, if you held the following deposits in a member credit union.
| Deposit | Amount | |
| Your name | ||
| Savings account | $15,000 | |
| Chequing account | $1,000 | |
| Term Deposit | $50,000 | |
| Total deposits in your name | $66,000 | |
| Total deposits covered by DICO | $66,000 | |
| Trust account set up by you for Three Beneficiaries (equal shares) | ||
| Term deposit | $150,000 | |
| Total deposits in trust | $150,000 | |
| Total deposits covered by DICO | $150,000 | |
| Note: In this example each beneficiary’s share of $50,000 would be covered. | ||
Deposits Held in Registered Plans (e.g. RRSP, RRIF, etc.)
DICO provides separate deposit insurance protection for deposits held in registered plans. DICO insures deposits held in registered plans separately from other deposit accounts held in the depositor’s name. Each registered plan is insured to a maximum of $100,000.
Example:
DICO would provide deposit insurance protection for the $35,000 held in your savings and chequing accounts, plus $110,000 for deposits held in your registered plans, if you held the following deposits in a member credit union.
| Deposit | Amount | |
| Savings account | $33,000 | |
| Chequing account | $2,000 | |
| Total deposits in your name | $35,000 | |
| Total deposits covered by DICO | $35,000 | |
| RRSP - savings account | $25,000 | |
| RRSP - term account | $85,000 | |
| RRSP mutual funds | $60,000 | |
| Total Registered Plans | $170,000 | |
| Total Registered Plans covered by DICO | $110,000 | |
| Uninsured Registered Plans | $60,000 | |
| Note: the $60,000 RRSP with mutual fund investment is not insured. | ||
Deposits Held in the Name of a Corporation, Partnership or Association
DICO provides separate deposit insurance protection up to $100,000 for the deposits held in the name of a corporation, partnership or association. Eligible accounts must be designated on the member institution's records by name and the member institution must maintain copies of the appropriate supporting documentation.
Eligible types of business accounts include:
- Corporations (registered under either the provincial or federal Corporations Act)
- Partnerships (registered with partnership agreement)
- Associations (e.g. Community Hockey Association)
Deposits for eligible business accounts are insured separately from deposits held in the names of any of the individual principals.
Example:
DICO would provide deposit insurance protection for the $58,000 held in your individual account, plus the $90,000 for your business account, if you held the following deposits in a member credit union.
| Deposit | Amount | |
| Your name | ||
| Savings account | $13,000 | |
| Chequing account | $5,000 | |
| RRSP - term deposit | $40,000 | |
| Total deposits at this credit union | $58,000 | |
| Total deposits covered by DICO | $58,000 | |
| Your Business (Corporation) | ||
| Current account | $10,000 | |
| Term deposit | $58,000 | |
| Total business deposits at this credit union | $90,000 | |
| Total deposits covered by DICO | $90,000 | |