Deposit Insurance FAQs

Yes. There are no immediate changes. Prospera and Sunshine Coast members’ deposits are protected through CUDIC until the completion of their continuance and the merger. Coast Capital member eligible deposits are currently covered by CDIC and this will continue after completion of the merger.

Prospera and Sunshine Coast will continue as federal credit unions and immediately merge with Coast Capital to create a combined federal credit union. Deposits held with the combined federal credit union will be insured by the Canada Deposit Insurance Corporation (CDIC), which provides coverage up to $100,000 per depositor, per deposit category. CDIC is the federal crown corporation that also protects eligible deposits at the major banks and Coast Capital. CDIC provides coverage for deposits in multiple categories (e.g. non-registered accounts, RRSPs, RRIFS, TFSAs, deposits held in trust and joint accounts), with coverage up to $100,000 available separately for each category per depositor.

If the continuance and merger proceeds, there will be a transition period for deposit insurance coverage provided by CDIC starting the day the transaction is completed. CDIC will provide the same coverage as CUDIC for most pre-existing deposits for a transition period starting on the day the continuance and merger is completed and ending after 180 days, in the case of demand deposits, and on the date of maturity or cashing out, in the case of term deposits. After the transition period, CDIC’s normal coverage will apply. 

CDIC deposit insurance applies automatically and free of charge to cover eligible deposits in the very unlikely event the member institution of CDIC holding the deposit fails. We can help you maximize your deposit insurance coverage by holding funds in multiple categories.

CDIC offers $100,000 insurance per separately insured category:  

• Deposits held in one name  
• Deposits held in more than one name (joint deposits)  
• Deposits in a trust account  
• Deposits in a TFSA  
• Deposits in an RRSP  
• Deposits in an RRIF  
• Deposits held in an RESP  
• Deposits held in an RDSP  
• Deposits held in a FHSA 

Joint name unique combinations are insured separately (shifting the order of joint names would not be separately insured). Principal and interest are included in the amount insured.

Members can get more than $100,000 of deposit insurance coverage from CDIC by rearranging their deposits into multiple categories. The amount of CDIC coverage available to an individual will depend on their circumstances and the types of accounts they hold. For example, one person can obtain up to $500,000 of coverage for their eligible deposits by putting money in non-registered accounts, RRSPs, TFSAs, RESPs and FHSAs. If this person has a spouse, the spouse will have the same amount of coverage available separately. Additional coverage of up to $100,000 will be available if they place eligible deposits in a joint account. More coverage could be available depending on family circumstances and preferences.

Before making any changes to the structure and ownership of your deposits, we recommend having a discussion with an advisor. Deposit insurance is just one factor to consider when determining the best way to structure your deposits. Changes made to maximize deposit insurance coverage may have impacts on estate planning, tax efficiency and other investment goals, so it is important to work with an advisor to holistically review your financial goals and ensure changes you may be considering do not negatively impact other aspects of your financial plan.

If a member holds eligible deposits with two or more of Coast Capital, Prospera and Sunshine Coast on the date of the merger that remain on deposit with the combined federal credit union, these deposits, less any withdrawals, will be treated as separate deposits, each with separate coverage per category up to CDIC’s insurance limit for two (2) years following that date, in the case of demand deposits, and until maturity or cashing out, in the case of term deposits. After this period, a single $100,000 CDIC insurance limit per category per registration will apply across the combined federal credit union.

Yes. Following completion of the continuance and merger, CDIC will offer transitional coverage for eligible pre-existing term deposits previously held with Prospera and Sunshine Coast credit unions. Eligible term deposits that members have with Prospera or Sunshine Coast that are still outstanding on the closing date of the merger will continue to have unlimited deposit insurance until the end of the term or until they are cashed out.

Following the completion of the continuance and merger, CDIC will offer transitional coverage for existing eligible demand deposits (e.g. chequing and savings accounts) previously held with Prospera and Sunshine Coast credit unions. The transition period lasts for 180 days, during which CDIC protection will apply to eligible deposits made before the transition.

Immediately before the date that Prospera and Sunshine Coast credit unions complete their continuance and merge with Coast Capital to form the combined federal credit union (“the continuance and amalgamation day”), Paul is a member of either Prospera or Sunshine Coast and has the following products with that credit union:

Starting on the continuance and amalgamation day and for the first 180 days after continuance and amalgamation day:

• All of Paul’s pre-existing demand deposits, minus any withdrawals he makes, will be fully insured by CDIC. 
• All of Paul’s pre-existing term deposits will be fully insured until the date of maturity or they are cashed out.

• Any new deposits Paul makes are separately insured by CDIC in accordance with its standard coverage. 

On the 181st day following continuance and amalgamation day:

• Paul’s demand accounts will be covered in accordance with CDIC’s standard coverage. 
• Paul’s term deposits will be fully insured until the date of maturity, or they are cashed out.

After the transitional coverage ends, some of Paul’s deposits would exceed CDIC’s coverage limits. However, we can help to provide strategies that could help Paul maximize his coverage. For example, in Paul’s case he could obtain additional coverage by putting some of his money in a TFSA, RESP or FHSA. Another thing Paul could do is put some of his money in a joint account with his spouse.

For the purposes of deposit insurance, a depositor may be an individual, an association of persons, a partnership, a corporation or a government entity. Eligible deposits in business accounts may be insurable separately from eligible deposits in individual accounts. 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 sole proprietor’s personal deposits.

Federally regulated credit unions are governed by and organized under the Canadian Federal Bank Act and regulated by OSFI. Compliance with federal financial consumer protection legislation is overseen by the Financial Consumer Agency of Canada. Deposit insurance is provided by CDIC. This is the same regulatory framework that applies to Canada’s largest banks. 

Canada’s financial system is regarded as one of the safest and strongest in the world. The federal regulatory framework and supervision play an important role in promoting and contributing to financial stability and public confidence and, in particular, supporting depositors to have confidence that their deposits are safe.