Are GICs Insured? | What Protects Your Money

Yes, most Canadian GIC deposits at insured institutions are protected by deposit insurance up to set limits on principal and interest.

When you lock money into a guaranteed investment certificate, you want the interest rate to make sense and you want the cash to be there if the institution ever fails. Your confidence rests less on the logo on the door and more on the rules behind deposit insurance.

In Canada, many GICs count as insured deposits, but not all of them. Protection depends on who issues the product, how long the term lasts, what account type you use, and whether the institution belongs to a deposit insurer.

Are GICs Insured In Canada Under CDIC Rules?

For GICs from banks and federal trust companies, the main safety net comes from the Canada Deposit Insurance Corporation (CDIC). CDIC is a federal Crown corporation that steps in when a member institution fails so that insured deposits are repaid within its limits. That keeps the rules clear.

The Financial Consumer Agency of Canada explains that eligible deposits such as savings accounts and GICs are insured separately up to 100,000 dollars per depositor, per insured category, at each CDIC member institution, including both principal and interest combined.

CDIC also lists GICs among the products it insures on its GIC information page, as long as the original term is five years or less, the deposit is payable in Canada, and the product sits at a member institution in Canadian dollars or another currency that the institution offers.

What Makes A GIC An Eligible Deposit

To fall under CDIC protection, a GIC must be a true deposit issued by a CDIC member such as a federally regulated bank or trust company. The original term cannot exceed five years, and the money has to be repayable in Canada. Products that look similar but are actually mutual funds, notes, or insurance contracts do not sit under CDIC rules.

Market-linked GICs can qualify when the principal is guaranteed and the term fits within the five year window. In that case, the principal and the interest that has built up count toward the insured limit in the relevant CDIC category, even if the final return depends on an index.

How CDIC Insurance Limits Work

CDIC does not protect GICs in a single pool. Instead, it groups deposits into categories such as deposits held in one name, joint deposits, registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), first home savings accounts (FHSAs), registered education savings plans (RESPs), registered disability savings plans (RDSPs), and registered retirement income funds (RRIFs). Each category at each member institution has its own 100,000 dollar limit per depositor.

That structure means you might have several insured GIC balances at the same bank if they sit in different categories. You could hold 90,000 dollars in GICs in a personal non-registered account, 90,000 dollars in GICs inside an RRSP, and 90,000 dollars in GICs in a TFSA at the same CDIC member. Each category would sit below its own 100,000 dollar cap, so all of those balances would fit within the insurance rules.

Provincial Credit Union GIC Insurance

Not all GICs sit at CDIC member banks. Many savers buy GICs from credit unions and caisses populaires, which fall under separate provincial systems. Each province has its own deposit insurer with its own rules and limits for members. An overview of these systems appears on the Canadian Credit Union Association deposit insurance page.

In Ontario, the Financial Services Regulatory Authority (FSRA) provides deposit insurance for credit union members through the Deposit Insurance Reserve Fund. FSRA lists GICs and other term deposits among insurable products and notes that non-registered deposits are insured up to 250,000 dollars per member, while eligible registered accounts such as RRSPs and TFSAs have unlimited protection when the product meets the conditions on its list. These details appear in the FSRA deposit insurance overview.

Across Canada, provincial rules differ. Some provinces insure deposits up to a fixed limit, while others offer unlimited protection at certain member institutions, so a GIC at a credit union can be insured to a different dollar amount than a similar product at a bank.

When A GIC Is Not Fully Insured

Many GICs qualify for deposit insurance, but some fall outside the rules or only enjoy partial protection. Knowing these gaps helps you avoid surprises if a bank or credit union ever runs into trouble.

Issuer Is Not A Member Of A Deposit Insurer

Deposit insurance attaches to the institution, not the marketing name on a brochure. If the issuer is not a CDIC member or is not protected by a provincial deposit insurer, the product will not fall under those programs. This may happen with certain finance companies, foreign banks operating without insured branches, or investment products that look like GICs but are structured notes.

Balance Above Insurance Limits

Insurance limits apply per depositor, per category, per institution. When your combined deposits in that bucket exceed the cap, only the part up to the limit is insured. If you hold 160,000 dollars in several non-registered GICs at one CDIC member bank, only 100,000 dollars plus accrued interest up to that amount fall under protection. The extra 60,000 dollars would sit outside the protected window.

Term And Product Features Outside The Rules

CDIC does not insure GICs with an original term longer than five years. A ten-year deposit would not be eligible, even if your balance sits under the dollar limit. Products that blend deposit features with securities, such as certain notes or fund-style investments, may also sit outside deposit insurance when they do not meet the formal definition of a deposit.

Common GIC Types And Typical Insurance Treatment

The table below compares frequent GIC setups and the way insurance usually applies when the issuer belongs to a deposit insurer. Terms still depend on the specific institution and category, so use this as a quick map instead of a contract.

GIC Type	Where It Is Held	Typical Insurance Treatment
1-year fixed-rate GIC	Personal non-registered account at CDIC member bank	Eligible for CDIC insurance up to 100,000 dollars within the single-name category at that bank.
5-year laddered GICs	RRSP at CDIC member bank	Each GIC with term of five years or less counts toward the separate 100,000 dollar RRSP category at that bank.
Market-linked GIC	TFSA at CDIC member bank	Principal and accrued interest within five years are insured up to 100,000 dollars under the TFSA category.
Foreign currency GIC	Personal account at CDIC member bank	Eligible for CDIC insurance when payable in Canada, combined with other deposits in the same category up to 100,000 dollars.
Brokered GIC	Investment account at dealer placing money with several CDIC members	Insurance depends on the underlying issuing institutions; limits apply per member bank and category, not per dealer.
Credit union GIC	Ontario credit union non-registered account	Insured by the provincial deposit insurer, often up to 250,000 dollars for non-registered accounts at that credit union.
Term over five years	Any account at CDIC member bank	Not eligible for CDIC insurance once the original term exceeds five years, even if other conditions match.

Sample GIC Insurance Scenarios

The next table shows how protection can change with account structure and institution choice. The numbers are simplified, but they give a clear sense of how deposit insurance works in practice.

Scenario	Total GIC Holdings	Amount Insured
Single-name GICs at one CDIC bank within limit	80,000 dollars in non-registered GICs	All 80,000 dollars insured under the single-name category at that bank.
Single-name GICs at one CDIC bank above limit	140,000 dollars in non-registered GICs	100,000 dollars insured, 40,000 dollars uninsured at that bank.
Split GICs across two CDIC banks	70,000 dollars at Bank A and 70,000 dollars at Bank B	All 140,000 dollars insured because each bank applies its own 100,000 dollar limit.
RRSP and TFSA GICs at same CDIC bank	90,000 dollars in RRSP GICs and 90,000 dollars in TFSA GICs	All 180,000 dollars insured because RRSP and TFSA categories each have a separate limit.
Non-registered GIC at Ontario credit union	200,000 dollars in a five-year GIC	Entire 200,000 dollars insured when it falls within the 250,000 dollar non-registered limit.
Registered GIC at Ontario credit union	350,000 dollars in RRSP GICs	Entire 350,000 dollars insured because eligible registered accounts have unlimited protection.
Ten-year GIC at CDIC member bank	50,000 dollars in a ten-year term	No CDIC protection because the original term is longer than five years.

Steps To Keep Your GIC Savings Protected

Confirm The Insurer Before You Invest

Always check whether the institution issuing the GIC is a CDIC member or covered by a provincial deposit insurer. CDIC keeps a public list of member institutions, and provincial insurers do the same for credit unions. If you buy through a broker or online platform, look for the name of the underlying bank or credit union, not only the dealer brand.

Match Your GIC Terms To Insurance Rules

If you want CDIC protection, keep GIC terms at five years or less. That still gives room to build a ladder out to five years while staying inside the rules. At credit unions, read the insurer brochure to confirm whether longer terms qualify and whether any special products sit outside deposit insurance.

Spread Large Balances Across Categories And Institutions

People with large balances can often keep full protection by splitting money across institutions and categories. You might hold one set of GICs in a personal account, another set in joint names with a spouse, and another inside registered plans such as RRSPs and TFSAs, choosing different banks and credit unions as needed.

Simple Takeaways On GIC Insurance Safety

GICs at Canadian banks and credit unions can offer both steady returns and strong protection when they fit within CDIC or provincial deposit insurance rules. To keep that protection in place, check that the issuer belongs to an insurer, watch the five-year term limit for CDIC coverage, and respect the dollar caps that apply to each category and institution.

With a short checklist and a basic chart of your accounts, you can line up GIC purchases so that every deposit sits under a protection limit somewhere. That structure lets your savings work quietly while you stay confident that a bank or credit union failure would not wipe out the cash you worked so hard to build.