# 5-Year GIC - CDIC coverage



## marketwatcher (May 18, 2012)

Hi guys - i have a question regarding CDIC and wish someone could help me out here. If I have my amount is greater than 200,000 with the same credit union or bank, will this be fully covered by CDIC or it's only covered for $100,000?! Thanks a lot


----------



## CanadianCapitalist (Mar 31, 2009)

It's hard to answer your question without knowing more details. Is the entire amount in your name or is it jointly owned? Do you hold other accounts with the same credit union or bank?

Anyway, the CDIC webpage should help you answer your question. You can find it here: 

http://cdic.ca/e/depositinsurance/faq.html


----------



## marina628 (Dec 14, 2010)

This is very good question and We have much more than the limit at TD bank.I have been considering opening up a hisa at another bank but then I think what are odds TD will go bust.


----------



## CanadianCapitalist (Mar 31, 2009)

marina628 said:


> This is very good question and We have much more than the limit at TD bank.I have been considering opening up a hisa at another bank but then I think what are odds TD will go bust.


Your cash holdings should be absolutely safe. I sincerely hope TD will never go bust as well but hope isn't a strategy. What's stopping you from opening accounts at different institutions to get full deposit insurance coverage? Or at least parking the cash in various institutions through HISAs available at TDW. And if you still have many 100 Gs left over, you can always buy some T-bills. Granted you'll get anemic interest but you get absolute safety.


----------



## marina628 (Dec 14, 2010)

Nothing stopping me just laziness I suppose .


----------



## marketwatcher (May 18, 2012)

That said - I have a million and will only go under my name (1 person). What are the good ways to put this 1 M? MAXA is offier 5 years GIC at 3.25% but they are not secured by CDIC. I called Coast capital today and they told me they used to cover only $100,000 but now they have changed it to unlimited. TD is my major bank; however, their GIC rate is so low ~ Any suggestions - Should I put in different banks or just one bank? Thanks


----------



## OhGreatGuru (May 24, 2009)

You are asking 2 different questions;
1. How to remain CDIC insured; and,
2. How to find decent GIC rates in the current environment.

1. If you want to be CDIC insured, I believe the limit is $100k per person per institution. So you would have to divide it between 10 institutions. (I won't go into why you would want $1M in GICs, nor whether there is any real risk of one of our major institutions defaulting on its GICs.)

2. Try a brokerage like Heritage Financial in Ottawa to find the best rates, and also to place your money with different institutions.


----------



## Eder (Feb 16, 2011)

I just opened another HISA, this time at Canadian Tire to ensure my cash is CDIC insured...I have GIC's spread all over the place to make sure they are insured. I don't know if I would trust TD not to go belly up, but that's probably an unfounded fear.


----------



## marketwatcher (May 18, 2012)

Eder- I do have HISA with Canadian Tire and ally. They dropped the rate from 2 to 1.8 last month. I think spread all around would be a good idea. So what do you think about MAXA or ACHIEVA FINANCIAL? They offer 3.25% for 5 year GIC... The best rate in BC is around 2.45 ~ 2.7%

OhGreatGuru - Thanks for the feedback. I will check with them too.

Appreciate any feebacks...


----------



## Spudd (Oct 11, 2011)

I heard that the Manitoba credit unions are covered by Manitoba deposit insurance, which covers unlimited amounts. Do your own research but if I ever get that much $ I will certianly be looking into it.


----------



## Eclectic12 (Oct 20, 2010)

Eder said:


> I just opened another HISA, this time at Canadian Tire to ensure my cash is CDIC insured...I have GIC's spread all over the place to make sure they are insured. I don't know if I would trust TD not to go belly up, but that's probably an unfounded fear.


Hmmm ... you are willing to put money with CT (how long have they existed? who is running their financials?) but are concerned about TD, which can trace it's roots in the business back to 1856.

So I suspect your fear is unfounded ...


Cheers


----------



## Eder (Feb 16, 2011)

My statement on TD was in response to Marina's post above. Although TD is very unlikely to faceplant I still won't put money in it that is not CDIC insured (over 100k).


----------



## Eclectic12 (Oct 20, 2010)

Eder said:


> My statement on TD was in response to Marina's post above. Although TD is very unlikely to faceplant I still won't put money in it that is not CDIC insured (over 100k).


Ahh .... so it's more the being over CDIC insured limits than a concern about TD per se. Thanks for the clarification.


Any idea who is running CT's operation?


Cheers


----------



## kcowan (Jul 1, 2010)

Does anyone know the status of TD e-series funds? Do any qualify for CDIC coverage on their own?


----------



## CanadianCapitalist (Mar 31, 2009)

kcowan said:


> Does anyone know the status of TD e-series funds? Do any qualify for CDIC coverage on their own?


No. TD e-series funds are mutual funds and do not have CDIC coverage.


----------



## marketwatcher (May 18, 2012)

Canadiancapitalist - are you saying -- if I purchased the GIC from TD Waterhouse, my fund would not be secured? TD trust did suggest me to put some money away for short term GIC in TD waterhouse e-series. 

If so, your informaiton is very important to me..


----------



## CanadianCapitalist (Mar 31, 2009)

marketwatcher said:


> Canadiancapitalist - are you saying -- if I purchased the GIC from TD Waterhouse, my fund would not be secured? ..


Please read the CDIC FAQ I linked to earlier in the thread. If you purchase GICs through TD Waterhouse it probably is eligible for CDIC coverage. TD e-series funds are mutual funds and mutual funds are not eligible.


----------

