Deposit Insurance

Deposit Insurance Corporation of Ontario (DICO)

DICO is a corporation established by the Credit Unions and Caisses Populaires Act (Ontario) to provide deposit insurance for credit union and caisse populaire depositors against loss of part or all of their deposits. The deposits accepted by all credit unions and caisses populaires in Ontario, subject to the deposit insurance coverage limits specified in the Act and DICO By-laws, are insured by DICO. The purpose of this information is to explain the deposit insurance coverage that DICO provides.

> See the DICO brochure

General Questions

1. How will you know that your credit union or caisse populaire is insured by DICO? Expand/Collapse

Each credit union or caisse populaire must display the official membership sign of DICO.

2. How will you know if your credit union or caisse populaire is not insured by DICO? Expand/Collapse

All active credit unions and caisses populaires in Ontario are required by legislation to be insured by DICO. In the unlikely event that a credit union or caisse populaire should cease operations, its deposits continue to be insured by DICO in accordance with the specified coverage limits.

3. Who pays the cost of deposit insurance? Expand/Collapse

Credit unions pay for deposit insurance protection through premiums paid to DICO.

4. Are deposits in different credit unions and caisses populaires separately insured? Expand/Collapse

Yes. If you have deposits with more than one credit union or caisse populaire, deposit insurance coverage limits are applied separately to the deposits in each credit union or caisse populaire.

5. Are deposits in different branches of the same credit union or caisse populaire separately insured? Expand/Collapse

No. Deposit insurance coverage limits apply to the combined total of the deposits in all branches of any one credit union or caisse populaire.

Obligations: Insured & Insurance Limits

6. What does DICO insure? Expand/Collapse

DICO insures Canadian currency deposits payable in Canada including:

  • savings and chequing accounts;
  • term deposits including index-linked term deposits;
  • guaranteed investment certificates;
  • deposits in registered savings plans (e.g. - RRSP, LIRA, RRIF, LIF, RESP, RDSP, TFSA);
  • to be eligible for deposit insurance protection, you must be a member of a credit union.

7. What is the maximum insurance protection? Expand/Collapse

Basic Protection

The maximum basic protection for eligible deposits is $250,000 (principal and interest combined) per member in each credit union.  Deposits held in different branches of the same credit union are not separately insured.

Separate Protection

DICO provides separate protection for deposits held in joint accounts and trust accounts.  All deposits in registered savings plans are all fully insured.

Joint Deposits - deposits you own with someone else are insured separately from deposits in your own name, provided the records of the credit union identify the name and address of each joint owner. The maximum insurance protection for deposits  having the same joint owners at each credit union is $250,000 (held jointly, not per individual owner).

Trust Deposits - Deposits held in trust accounts are insured separately from deposits owned by the trustee or the beneficiary.  The records of the credit union must identify:

  • that the deposits are held in trust;
  • the name and address of the trustee(s);
  • the name and address of the beneficiary(ies).

If a trust deposit has more than one beneficiary, the portion owned by each beneficiary must be identified on the credit union's records.  Each beneficiary's portion is insured up to $250,000.  Eligible deposits having both the same trustee and the same beneficiary are combined and the the total is insured to a maximum of $250,000.


Registered Savings Plan
- Deposits held in registered savings plans are separately insured from the deposits held in other accounts.  All deposits made to registered savings plans are fully insured with no limit on the maximum amount.  Registered Savings Plans include RRSP, LIRA RRIF, LIF, RESP (Registered Educational Savings Plan), RDSP (Registered Disability Savings Plan), and TFSA (Tax Free Savings Account).

8. What items are not insured by DICO? Expand/Collapse

DICO does NOT insure:

  • mutual funds;
  • membership shares;
  • patronage, investment or preferred shares issued by a credit union;
  • foreign currency deposit accounts;
  • contents of safety deposit boxes;
  • securities held for safekeeping.

GLOSSARY OF TERMS Expand/Collapse

Credit Union or Caisse Populaire

A corporation incorporated as a credit union or caisse populaire under the Credit Unions and Caisses Populaires Act or as a predecessor thereof

Deposit

Funds held on deposit with a credit union or caisse populaire by a member or for his or her benefit, including savings and chequing accounts, term deposits, and guaranteed investment certificates.

Person

A corporation, an individual, an unincorporated association or a partnership.

Depositor

A person who is a member of a credit union or caisse populaire under the Credit Unions and Caisses Populaires Act and any other depositor from which a credit union or caisse populaire may lawfully accept deposits.

 

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Deposit Insurance Corporation of Ontario (DICO)

Deposits are guaranteed by the Deposit Insurance Company of Ontario.

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