Coverage
Insurance is restricted to registered member institutions, and covers only the first $100,000 in very specific categories of accounts. Credit unions and Quebec and New Brunswick's caisses populaires are not insured federally, because they are created under provincial charters and backed by provincial insurance plans, which generally follow the federal model. Deposits in foreign currencies are not insured, even when held by a registered CDIC financial institution. Guaranteed Investment Certificates with a term longer than 5 years are also not insured. Funds in foreign banks operating in Canada are not covered. Some funds in Registered Retirement Savings Plans or Registered Retirement Income Funds at a bank may not be covered if they are invested in mutual funds or held in specific instruments like debentures issued by government or corporations. The general principle is to cover reasonable deposits and savings, but not deposits deliberately positioned to take risks for gain, such as mutual funds or stocks.
Read more about this topic: Canada Deposit Insurance Corporation