Are High-Interest Savings Accounts CDIC Insured?

Sometimes, but not always.

A high-interest savings account may be CDIC insured if it is an eligible deposit held at a CDIC member institution. CDIC does not insure every financial product, and not every institution in Canada is covered by CDIC.

When a HISA is CDIC insured

CDIC says it insures eligible deposits if a member institution fails. CDIC coverage is automatic for eligible deposits held at CDIC member institutions in Canada. Savings accounts are one of the deposit types that can be covered.

So a HISA is generally CDIC insured when:

• it is actually a deposit product

• it is held at a CDIC member institution

• the amount falls within CDIC’s coverage rules and categories.

How much CDIC covers

CDIC says eligible deposits are insured up to $100,000 per category, per member institution, including principal and interest. That means coverage is not simply one flat $100,000 total across everything you own. Different deposit categories are insured separately.

CDIC lists categories such as:

• deposits held in one name

• joint deposits

• TFSAs

• RRSPs

• FHSAs

• trusts.

Why the answer is not always yes

Some people hear “savings account” and assume full protection always applies. That is not accurate.

CDIC only covers eligible deposits. It does not cover mutual funds, stocks, bonds, ETFs, or cryptocurrencies. So if a product is marketed alongside savings features but is not actually an eligible deposit, CDIC coverage may not apply.

What if the HISA is inside a TFSA?

A HISA held inside a TFSA can still be CDIC insured if it is an eligible deposit at a CDIC member institution. Eligible deposits held in a TFSA are protected in the TFSA category.

But CDIC also makes clear that not everything inside a TFSA is covered. For example, stocks, bonds, and ETFs in a TFSA are not CDIC-insured deposits.

What if the account is at a credit union?

A HISA at a credit union may be protected by a provincial deposit insurer instead of CDIC. Provincial deposit insurance plans apply to provincially regulated credit unions, caisses populaires, and some provincially regulated trust and loan companies, and the rules vary by province.

So if your HISA is not with a CDIC member institution, that does not automatically mean it is uninsured. It may just fall under a different deposit insurance system.

How to check

Before relying on CDIC protection, check:

• whether the institution is a CDIC member

• whether the HISA is an eligible deposit

• how much money you have in that coverage category

• whether any of your money is held in products CDIC does not insure.

What to Remember

High-interest savings accounts are not automatically CDIC insured in every case. A HISA may be covered when it is an eligible deposit at a CDIC member institution, and coverage is generally up to $100,000 per category, per member institution, including principal and interest.

If the account is with a credit union or another non-member institution, you may need to check provincial deposit insurance instead.