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An Overview of CDIC and What It Covers
Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that insures more than $1 trillion in deposits held in member institutions. CDIC is fully funded by members and coverage is free and automatic—you don’t have to sign up. CDIC protects eligible deposits in Canadian and foreign currency for up to $100,000 (Canadian dollars) in each of CDIC's insurance categories, which include deposits held in one name, jointly, in trusts or in registered plans like the RRSP and TFSA.
Covered by the CDIC:
Deposits in Canadian or foreign currency (including via payroll, Interac e-Transfer, or cheque)
Guaranteed Investment Certificates (GICs)
Other term deposits
NOT covered by the CDIC:
Mutual funds
Stocks and bonds
Exchange-Traded Funds (ETFs)
Cryptocurrencies
What’s Happening to Your CDIC Coverage
When two or more CDIC member institutions amalgamate, insured deposits held at each institution before the amalgamation continue to be insured separately for up to $100,000 per depositor per category, as if the institutions had not amalgamated.
In the case of HSBC Bank Canada and RBC, there are four CDIC member institutions amalgamating: Royal Bank of Canada (RBC), HSBC Bank Canada (HBCA), HSBC Trust Company (Canada) (HTCC) and HSBC Mortgage Corporation (Canada) (HMCC). Once amalgamation of these entities occurs, all HSBC Bank Canada deposits held within any of the three entities (HBCA, HMCC and HTCC) will be migrated to a single RBC entity (Royal Bank of Canada).
In practice, this looks like a new RBC deposit account being opened with the same or similar attributes as the one previously held at HSBC Bank Canada.
Insured deposits that a client has at any HSBC Bank Canada entity and Royal Bank of Canada entity before the amalgamation continue to be insured separately, up to $100,000 per depositor per category for a period of two years post amalgamation, or in the case of term deposits, until maturity (or redemption). However, the amount of separate coverage is reduced by withdrawals made from those separate deposits, or as term deposits mature or are redeemed—per CDIC regulation.
As a part of the amalgamation, both new to RBC and shared clients may consider optimizing their CDIC coverage as grandfathered coverage begins to reduce. Please speak to an advisor for more information.
Post Amalgamation: How New Deposits are Covered
Coverage for new deposits made by a client at RBC (i.e. the amalgamated institution) after amalgamation depends on the total deposit amounts the client had at the member institutions before they amalgamated:
If a client’s total existing deposits (in a category) held with the entities immediately prior to amalgamation total $100,000 or more, any new eligible deposits the client makes (for that category) at RBC after amalgamation will exceed the $100,000 maximum and not be insured by CDIC.
If a client’s total existing deposits (in a category) held with the entities immediately prior to amalgamation are less than $100,000, any new eligible deposits the client makes (for that category) at RBC after amalgamation will be added to the previous deposits, and the total will be insured up to $100,000.
Important Considerations for HSBC InvestDirect (HIDC) and RBC Direct Investing Accounts
Uninvested cash deposits in RBC Direct Investing registered accounts are held at our affiliate, The Royal Trust Company, which is a CDIC member institution. These deposits may be eligible for CDIC coverage up to the $100,000 limit, per category, under The Royal Trust Company member institution.
This coverage does not apply to cash held in non-registered accounts, which is insured under the Canadian Investor Protection Fund (CIPF). CIPF provides coverage up to a limit of $1,000,000 for cash and securities held in an account. Learn more about CIPF coverage.
If you held RBC Investment Savings Account (ISA) products at both HSBC InvestDirect (HIDC) and RBC Direct Investing prior to the amalgamation, CDIC eligible deposits would each have been insured separately up to individual limits of $100,000. After your account moves to RBC Direct Investing, if the total amount of CDIC eligible deposits held in your RBC Investment Savings Account at RBC Direct Investing exceeds $100,000 per CDIC category, per member institution, you will only receive CDIC insurance coverage up to a limit of $100,000.
RBC Direct Investing offers Investment Savings Account products from several CDIC member institutions, each of which is eligible for coverage up to $100,000 per CDIC category. Learn more about RBC ISAs.
GICs held at online brokerages or broker GICs can be held in two ways:
- Under a client’s name
- Under a broker’s name as a client’s nominee (“Nominee Broker”)
Nominee Broker GICs are eligible for separate CDIC coverage if held at different brokerages, even if they are issued by the same CDIC member institution. Nominee Broker GICs are also eligible for separate CDIC coverage from GICs purchased directly through a member institution even if they are issued by the same institution.
If you have GICs held under a broker’s name as your nominee at both HSBC InvestDirect and RBC Direct Investing prior to amalgamation, you may be eligible for separate CDIC coverage up to a maximum of $100,000 per member institution/per broker/per CDIC category. Post amalgamation, coverage continues as if the entities had not amalgamated for a period of two years from the date of amalgamation, excluding term deposits. For term deposits, coverage extends until maturity unless the accounts are merged, at which point you will lose the separate coverage.
Examples of CDIC Coverage
Explore several examples of how amalgamation would affect CDIC coverage for a fictional client.
Note: In the examples below, the new account at the resulting institution post amalgamation will be referred to as follows: e.g. RBC savings account—formerly HBCA1 savings account.
In this case, there are four CDIC member institutions amalgamating: Royal Bank of Canada (RBC), HSBC Bank Canada (HBCA), HSBC Trust Company (Canada) (HTCC) and HSBC Mortgage Corporation (Canada) (HMCC). Insured deposits at each institution, including RBC, continue to be separately insured up to $100,000 per depositor per category, as if the institutions had remained separate legal entities.
Example: Jane has the following deposits at RBC and HSBC Bank Canada entities before amalgamation.
Here’s what does 
and does not 
qualify for CDIC coverage:
| Before Amalgamation | After Amalgamation |
|---|---|
|
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|
CDIC Coverage: $400,000 |
CDIC Coverage: $400,000 |
Before and after amalgamation, Jane has $400,000 in coverage ($100,000 per institution). Coverage continues as if the entities had not amalgamated for a period of two years from the date of amalgamation, excluding term deposits where coverage extends until maturity.
In this case, there are four CDIC member institutions amalgamating: Royal Bank of Canada (RBC), HSBC Bank Canada (HBCA), HSBC Trust Company (Canada) (HTCC) and HSBC Mortgage Corporation (Canada) (HMCC). Insured deposits made at each institution prior to amalgamation continue to be separately insured up to $100,000 per depositor per category for a period of two years, as if the institutions had remained separate legal entities. However, withdrawals, term deposit renewals/redemptions and new deposits made after amalgamation affect coverage.
Example: Soon after amalgamation, Jane makes a $50,000 withdrawal from her savings account.
Here’s what does and does not qualify for CDIC coverage:
| After Amalgamation - Before $50,000 Withdrawn | After Amalgamation - After $50,000 Withdrawn |
|---|---|
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CDIC Coverage: $400,000 |
Revised CDIC Coverage: $350,000 |
Jane now has $350,000 in coverage, because she withdrew $50,000 from the RBC savings account (formerly HBCA savings account).
Example: One year after amalgamation, two of Jane’s GICs mature.
Here’s what does and does not qualify for CDIC coverage:
| After Amalgamation - Before 1-Year GICs Mature | After Amalgamation - After 1-Year GICs Mature |
|---|---|
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CDIC Coverage: $350,000 |
Revised CDIC Coverage: $150,000 |
Jane now has $150,000 in coverage, because her two one-year GICs have matured.
Example: 18 months after amalgamation, Jane makes a new deposit of $50,000 to her savings account.
Here’s what does and does not qualify for CDIC coverage:
| After Amalgamation - Before New $50,000 Deposit to Savings Account | After Amalgamation - After New $50,000 Deposit to Savings Account |
|---|---|
|
|
|
$100,000 in RBC savings account (formerly HBCA savings account)
|
CDIC Coverage: $150,000 |
CDIC Coverage: $150,000 |
Jane has $150,000 in coverage. Her new $50,000 deposit to the savings account is not covered because she already has over $100,000 in coverage for deposits in that one category—$100,000 for the RBC GIC and $50,000 in the RBC savings account (formerly HBCA savings account).
Example: With her coverage at $150,000, Jane now withdraws $75,000 from her savings account.
Here’s what does and does not qualify for CDIC coverage:
| After Amalgamation - Before $75,000 Withdrawn from Savings Account | After Amalgamation - After $75,000 Withdrawn from Savings Account |
|---|---|
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|
$100,000 in RBC savings account (formerly HBCA savings account)
|
|
CDIC Coverage: $150,000 |
Revised CDIC Coverage: $100,000(Maximum coverage for deposits in one category. Grandfathering is no longer relevant in this scenario.) |
Jane withdrew $75,000 from the RBC savings account (formerly HBCA savings account). The $25,000 left in the savings account would not receive separate coverage as this was added post amalgamation and exceeds the maximum coverage ($100,000) for deposits in one category.
Example: Jane wins the lottery and makes another deposit to her savings account of $1,000,000.
Here’s what does and does not qualify for CDIC coverage:
| After Amalgamation - Before $1,000,000 Deposited | After Amalgamation - After $1,000,000 Deposited |
|---|---|
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|
CDIC Coverage: $100,000 |
CDIC Coverage: $100,000(Maximum coverage for deposits in one category. Grandfathering is no longer relevant in this scenario.) |
Jane deposited $1,000,000 into the RBC savings account (formerly HBCA savings account). Jane’s coverage remains at $100,000 in this scenario because she has already reached the maximum coverage for deposits in one category. If maximizing her CDIC coverage on the lottery winnings was important, Jane and her advisor could optimize her coverage by depositing the funds across:
- RBC entities, and
- CDIC categories, taking into consideration the account type based on her existing contribution room, eligibility and timeframe for needing to access the funds.
In this case, there are four CDIC member institutions amalgamating: Royal Bank of Canada (RBC), HSBC Bank Canada (HBCA), HSBC Trust Company (Canada) (HTCC) and HSBC Mortgage Corporation (Canada) (HMCC). Insured deposits at each institution prior to amalgamation continue to be separately insured up to $100,000 per depositor per category for a period of two years, as if the institutions had remained separate legal entities. However, withdrawals, term deposit renewals/redemptions and new deposits made after amalgamation affect coverage.
Example: Eric has the following deposits before amalgamation.
Here’s what does and does not qualify for CDIC coverage after the one-year mark and the two-year mark:
| Coverage at Amalgamation | Coverage 1 Year After Amalgamation | Coverage 2 Years After Amalgamation |
|---|---|---|
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CDIC Coverage: $400,000 |
Revised CDIC Coverage: $300,000Coverage ends for RBC GIC (formerly HTCC GIC) since it has matured. |
Revised CDIC Coverage: $200,000Separate coverage for deposits in the RBC savings account and former HBCA savings account ends automatically after 2 years (as these are not term deposits). Separate coverage for the former HMCC GIC continues until maturity as it is a term deposit. |
Note: If the 3-year GIC was an HBCA GIC instead of an HMCC GIC, the result would be the same. From a CDIC perspective, all amalgamating entities are treated the same and the rules apply equally.
In this case, there are four CDIC member institutions amalgamating: Royal Bank of Canada (RBC), HSBC Bank Canada (HBCA), HSBC Trust Company Canada (HTCC) and HSBC Mortgage Corporation Canada (HMCC). Insured deposits at each institution prior to amalgamation continue to be separately insured up to $100,000 per depositor per category for a period of two years, as if the institutions had remained separate legal entities. However, withdrawals, term deposit renewals/redemptions and new deposits made after amalgamation affect coverage.
Example: John has the following deposits at HSBC Bank Canada entities before amalgamation.
Here’s what does and does not qualify for CDIC coverage:
| Before Amalgamation | After Amalgamation |
|---|---|
|
|
|
|
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|
CDIC Coverage: $300,000 |
CDIC Coverage: $300,000 |
Before and after amalgamation, John has $300,000 in coverage ($100,000 per institution). Coverage continues as if the entities had not amalgamated for a period of two years from the date of amalgamation, excluding term deposits where coverage extends until maturity.
Example: Soon after amalgamation, John makes a $50,000 withdrawal from his savings account.
Here’s what does and does not qualify for CDIC coverage:
| After Amalgamation - Before $50,000 Withdrawal | After Amalgamation - After $50,000 Withdrawal |
|---|---|
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CDIC Coverage: $300,000 |
Revised CDIC Coverage: $250,000 |
John now has $250,000 in coverage, because he withdrew $50,000 from the RBC savings account (formerly HBCA savings account).
Example: Jane has the following deposits at RBC Direct Investing and HSBC InvestDirect (HIDC) before amalgamation.
Here’s what does and does not qualify for CDIC coverage:
| Before Amalgamation | After Amalgamation |
|---|---|
|
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|
|
CDIC Coverage: $200,000 |
CDIC Coverage: $200,000 |
Before amalgamation, Jane has $200,000 in coverage ($100,000 per broker). Post amalgamation, coverage continues as if the entities had not amalgamated and expires upon the maturity of the GICs since they are term deposits.
Example: Jane has the following deposits at RBC Direct Investing and HSBC InvestDirect (HIDC) before amalgamation.
Here’s what does and does not qualify for CDIC coverage:
| Before Amalgamation | After Amalgamation |
|---|---|
|
|
|
|
CDIC Coverage: $200,000 |
CDIC Coverage: $200,000 |
Before and after amalgamation, Jane has $200,000 in coverage as one GIC deposit is held with a bank, and the other is a broker GIC held at an investment brokerage. Coverage continues as if the entities had not amalgamated and expires upon the maturity of the GICs since they are term deposits.
Frequently Asked Questions
Coverage will depend on the products held. For details, see Important Considerations for HSBC InvestDirect and RBC Direct Investing Accounts above.
Eligible deposits include savings accounts, chequing accounts, GICs or other term deposits, money orders, certified cheques, and bank drafts issued by CDIC member institutions.
Market-linked or index-linked deposits are insurable only if the principal is fully repayable (at maturity or otherwise).
To learn more about deposit insurance and how to maximize coverage please speak to an RBC advisor or visit cdic.ca.
In the case of HSBC Bank Canada and RBC, there are four CDIC member institutions amalgamating: Royal Bank of Canada (RBC), HSBC Bank Canada (HBCA), HSBC Trust Company (Canada) (HTCC) and HSBC Mortgage Corporation (Canada) (HMCC).
At amalgamation, all HSBC Bank Canada deposits held within any of the three entities (HBCA, HTCC and HMCC) will be migrated to a single RBC entity (Royal Bank of Canada). Insured deposits that a client has at any HSBC Bank Canada entity and RBC before the amalgamation continue to be insured separately, up to $100,000 per client per category for a period of two years. However, coverage is reduced when money is withdrawn from those separate deposits, or as term deposits mature or are redeemed.
Need Assistance?
Call 1-800-769-2503
Need Assistance?
Call 1-800-769-2503
For more information related to CDIC annual beneficiary disclosure, please speak to your RBC advisor or visit https://www.rbcroyalbank.com/
CDIC insures eligible deposits for up to $100,000 (including principal and interest) at each member institution, for each of the following categories:
- Deposits held by one person/depositor (BASIC)
- Joint deposits held in more than one name (by two or more people/depositors) (JOINT)
- Deposits held in a Registered Retirement Savings Plan (RRSP)
- Deposits held in a Registered Retirement Income Fund (RRIF)
- Deposits held in a Tax-Free Savings Account (TFSA)
- Deposits held in a First Home Savings Account (FHSA)
- Deposits held in a Registered Education Savings Plan (RESP)
- Deposits held in a Registered Disability Savings Plan (RDSP)
- Deposits held in trust (up to $100,000 for each beneficiary named in a trust, provided certain disclosure rules are met) (TRUST)
A term deposit is a deposit that is due at the end of a fixed term. It may pay interest at a fixed rate, at a floating (variable) rate or at an index-linked rate. A GIC is a common type of term deposit.
This refers to a merger between CDIC member institutions. In this case, member institutions include:
- HSBC Bank Canada
- HSBC Trust Company (Canada)
- HSBC Mortgage Corporation (Canada)
- Royal Bank of Canada (RBC)
For the purpose of CDIC deposit insurance, a depositor may be an individual (including sole proprietorship), corporation, partnership, government, church, charity, non-profit organization, estate and trustee that has monies placed in a member institution. See FAQs - cdic.ca for more details.
Each of the following are CDIC member institutions of Royal Bank of Canada:
- Royal Bank of Canada (RBC)
- Royal Bank Mortgage Corporation (RBMC)
- The Royal Trust Company (RTC)
- Royal Trust Corporation of Canada (RTCC)
Each of the following are CDIC member institutions of HSBC Bank Canada:
- HSBC Bank Canada (HBCA)
- HSBC Trust Company (Canada) (HTCC)
- HSBC Mortgage Corporation (Canada) (HMCC)
Note: Upon completion of the amalgamation, these entities will legally cease to exist, and accounts will be held within a single RBC entity (Royal Bank of Canada).
A new RBC client is a client of an HSBC Bank Canada entity prior to amalgamation, that becomes an RBC client post amalgamation and that is not an existing RBC client at the time of amalgamation.