Frequently Asked Questions


The following represent frequently asked questions regarding DICO deposit insurance coverage.

Who is DICO?

The Deposit Insurance Corporation of Ontario (DICO) is an agency of the Province of Ontario with a mandate to: insure deposits held by members of credit unions and caisses populaires incorporated in Ontario. Act as a prudent regulator of CUs and CPs as per the Credit Union and Caisses Populaires Act, 1994. The Board of Directors is appointed by the Minister of Finance as per the Credit Union and Caisses Populaires Act, 1994.

Who does DICO insure?

DICO insures the deposits of members of credit unions and caisses populaires that are incorporated in Ontario. All Credit Unions and Caisses Populaires are governed by the Credit Union and Caisses Populaires Act, 1994 and must be insured by DICO to operate in Ontario.

What is deposit insurance?

Deposit insurance provides protection for eligible deposits held at credit unions or caisses populaires in the unlikely event that an institution goes out of business.

Who pays for this deposit insurance?

All insured credit unions and caisses populaires are required to pay premiums to DICO for deposit insurance protection.

How do I apply for deposit insurance?

No. It is not necessary to apply for deposit insurance. You are automatically covered when you become a member of a credit union and hold deposits at that institution.

Can I buy additional deposit insurance?

No. Additional deposit insurance protection cannot be purchased by an individual from DICO.

Do I have to be a member of a credit union or caisse populaire to be covered?

Yes. You must be a member of the credit union or caisse populaire and own the minimum number of membership shares required by the institution.

How will I know that my credit union or caisse populaire is insured by DICO?

All credit unions and caisses populaires incorporated in Ontario are required by legislation to be insured by DICO. Each of these institutions is required to display the official decal (sticker) decal , which confirms that deposits are insured by DICO.

What are eligible deposits?

The following types of products are considered “eligible deposits” and must be payable in Canada in Canadian dollars:

  • savings deposits
  • chequing deposits
  • guaranteed investment certificates or term deposits
  • money orders
  • bank drafts
  • funds in transit
  • index-linked term deposits (principal portion only)

What types of accounts are covered?

  • Accounts held in one name
  • Joint Accounts in two or more names
  • Trust Accounts
  • Business Accounts (e.g. Corporations, Partnerships)
  • Life Income Fund (LIF)
  • Locked-in Retirement Account (LIRA)
  • Locked-in Retirement Income Fund (LRIF)
  • Registered Disability Savings Plans (RDSP)
  • Registered Educational Savings Plans (RESP)
  • Registered Retirement Savings Plans (RRSP): locked-in and not locked-in)
  • Registered Retirement Income Funds (RRIF): locked-in and not locked-in)
  • Tax Free Savings Accounts (TFSA)

Which institutions are not insured by DICO?

DICO only insures credit unions and caisses populaires incorporated in the province of Ontario. Banks, insurance companies, trust companies, investment houses and deposit brokers are not insured by DICO. For information on the types of insurance available for these organizations please use the following link (www.financeprotection.ca).

How much are my deposits protected?

Non-registered demand deposits (savings accounts, term deposits, GICs ,chequing accounts, certified cheques, money orders, “bank” drafts and funds in transit) in the name of an individual member are covered up to a combined maximum of $100,000 at each insured institution. DICO also provides separate deposit insurance protection for deposits held jointly with other members and for deposits held in trust.

There is no maximum limit for coverage on deposits held in registered savings plans (i.e. LIF, LIRA, LRIF, RRSPs, RDSP, RESP, RRIFs, TFSA). All deposits in registered savings plans are fully insured.

Do I have separate coverage if I have deposits at more than one credit union or caisse populaire?

Yes. You deposits held at different credit unions/caisses populaires are separately insured.

If I have deposits in separate branches of the same credit union, is each deposit insured separately?

No. Deposit insurance protection applies to the combined total of your deposits in any one insured credit union/caisse populaire.

In the unlikely event that my credit union goes out of business, are my deposits still protected?

If your credit union/caisses populaires goes out of business, your deposits and accrued interest will continue to be insured by DICO in accordance with the prescribed maximum limits.

If I open two deposit accounts, one in the name of John H. Jones and the other J. Jones, are both accounts insured separately to a maximum of $100,000 each?

No. A variation of your own name on the ownership of an account is not considered a separate legal person and therefore would not be covered separately. Aggregate deposits in the name of an individual member of a credit union/caisse populaire is insured up to a maximum of $100,000.

Is my term deposit or GIC with a 10 year term covered by deposit insurance?

Yes. All term deposits or GICs are eligible for deposit insurance coverage regardless of the term.

What types of deposits are NOT covered?

  • Membership shares of a credit unions
  • Investment shares of a credit union
  • Patronage or bonus shares of a credit unions
  • Mutual Funds
  • Treasury bills
  • Government and corporate bonds
  • Stocks, debentures or shares
  • Any foreign currency deposit or investment
  • Bonds

Is my foreign currency account covered by deposit insurance?

No.Only Canadian currency deposits are covered.

If I am a member and have deposits at an Ontario credit union/caisse populaire and I subsequently move out of province, are my deposits still covered by DICO?

Yes. Your deposits will remain protected while you remain a member of an Ontario credit union/caisse populaire.

If I have a joint account and I am the primary account owner with my spouse on one account and I am a joint account owner with my spouse as the primary account owner on a second account, are they each insured separately?

No, both accounts would be insured up to a combined total of $100,000 as the joint owners are the same regardless of who is the primary account owner on any particular account.

Does DICO insure deposits held in trust?

Yes. DICO insures eligible deposits in trust accounts at each DICO insured institution up to a maximum of $100,000 for each named beneficiary of the trust.

Special rules apply regarding insurance protection for deposits held in trust. Generally, the following criteria must be met:

  • the existence of the trust must be disclosed on the records of the insured institution`s
  • the name and address of the trustee must be disclosed in the records of the insured institution;
  • the name and address of each beneficiary must be disclosed in the records of the insured institution;
  • if there is more than one beneficiary, the portion belonging to each must be disclosed on the records of the institution;

If all above criteria are met and the deposits are considered eligible then each beneficiary’s portion of the trust deposits is insurable up to a maximum of $100,000.

What is the definition of a business for the purposes of deposit insurance protection?

For the purposes of determining deposit insurance protection, a business is defined as a corporation, partnership, association, registered charity or government.

Does the number of signatories on a business account increase the amount of deposit insurance protection?

No. The maximum insurance protection is $100,000 for the business entity.

How is the limit for deposit insurance protection calculated for deposits held in the name of a business?

DICO insures eligible deposits of a business at each DICO insured institution up to a maximum of $100,000 for all business types except sole proprietorships.

Deposits for eligible business accounts are insured separately from deposits held in the names of any of the individual principals. Eligible deposits in the name of a business will be insurable separately from eligible deposits in individual accounts or accounts in the name(s) of the business owner(s), if the business is a partnership or an incorporated business.

How is deposit insurance protection limit calculated for sole proprietorships?

“Sole Proprietorships” do not benefit from separate deposit protection as they are not separate legal entities. As a result, deposits in the individual’s name will be combined with the deposits of the “sole proprietorship”. To be eligible for DICO deposit insurance, eligible deposits must be payable in Canada, in Canadian currency, by a DICO insured member institution.

EXAMPLES - Basic Protection

DICO provides deposit insurance protection for each individual depositor up to $100,000. The maximum basic protection 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 an insured 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 an insured 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 an insured 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 1:
DICO would provide full deposit protection for all deposits for Bob, $100,000 for Sara plus $100,000 for the deposits held jointly by Bob and Sara if they held the following deposits in an insured credit union.

  Deposit Amount
  Bob’s accounts
  Savings account $35,000
  Chequing account $5,000
 
  Total deposits of Bob $40,000
  Total deposits covered by DICO $40,000
 
  Sara’s accounts
  Savings account $35,000
  Chequing account $1,000
  Term deposits $75,000
 
  Total deposits of Sara $111,000
  Total deposits covered by DICO $100,000
  Uninsured deposits $11,000
  Note: Deposits in the name of an individual over $100,000 are not insured.
 
  Joint Account (jointly owned by Bob and Sara)
  Savings account $24,000
  Chequing account $5,000
  Term deposits $75,000
 
  Total deposits held in joint names $104,000
  Total deposits covered by DICO $100,000
  Uninsured deposits $4,000
  Note: Deposits in the name of the joint owners over $100,000 are not insured.

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 protection.

These deposits are also insured separately from deposits held by any of the beneficiaries in his/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 insured 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 an insured credit union.

  Deposit Amount
  Your name
  Savings account $15,000
  Chequing account $4,000
  Term Deposits $50,000
   
  Total deposits in your name $69,000
  Total deposits covered by DICO $69,000
 
  Trust account set up by you for your daughter as an individual beneficiary:
  Term deposit $55,000
 
  Total deposits in trust $55,000
  Total deposits covered by DICO $55,000

Example 2:

In the example below, DICO would provide $100,000 of deposit protection for all deposits in your own name plus $300,000 of deposits held in trust for account with 3 beneficiaries, if you held the following deposits in an insured credit union as outlined.

  Deposit Amount
  Your name
  Savings account $15,000
  Chequing account $7,000
  Term Deposits $95,000
 
  Total deposits in your name $117,000
  Total deposits covered by DICO $100,000
  Uninsured deposits $17,000
 
  Trust account set up by you for your three grandchildren (equal shares):
  Term deposit $330,000
 
  Total deposits in trust $330,000
  Total deposits covered by DICO $300,000
  Uninsured deposits $30,000
 
  Note: In this example each beneficiary’s share up to $100,000 would be covered.

Deposits Held in Registered Plans (e.g. RRSP, RRIF, TFSA, etc.)

DICO provides separate unlimited deposit insurance protection for deposits held in registered savings plans. DICO insures deposits held in registered savings plans separately from other deposit accounts held in the depositor’s name. Each registered plan is insured with no maximum.

Example:

  Deposit Amount
  Savings account $30,000
  Chequing account $2,000
  Term Deposit $58,000
 
  Total deposits in your name $90,000
  Total deposits covered by DICO $90,000
 
  RRSP - savings account $25,000
  RRSP - term account $185,000
  RRSP mutual funds $60,000
  TFSA – savings $5,000
 
  Total Registered Plans $275,000
  Total Registered Plans covered by DICO $215,000
  Uninsured Registered Plans $60,000

DICO would provide deposit insurance protection for the $90,000 held in your savings, chequing and term deposit accounts, plus $215,000 for deposits held in your registered plans, if you held the deposits in an insured credit union as outlined above.

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 insured institution's records by name and the insured 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.

Note: Deposits of a Sole Proprietorship business are not separately insured from the other deposits in the name of individual owner.



Example 1:

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 $80,000
 
  Total business deposits at this credit union $90,000
  Total deposits covered by DICO $90,000



Example 2: Individual with Sole Proprietorship account

DICO would provide deposit insurance protection for the $100,000 held in the non-registered accounts plus $150,000 your registered accounts. Funds held in your sole proprietorship business account are not insured separately from the accounts held in your individual accounts.

  Deposit Amount
  Your name
  Savings account $50,000
  Chequing account $10,000
  RRSP $150,000
 
  Your Sole Proprietorship Business
  Current account $10,000
  Term deposit $60,000
 
  Total deposits at this credit union $280,000
  Total non-registered deposits covered by DICO $100,000
  Total registered deposits covered by DICO $150,000
  Uninsured deposits $30,000