Feds consider raising deposit insurance limit to $150,000

The federal government is looking for feedback on changes to Canada’s deposit insurance framework that could see the coverage limit raised to $150,000.

Right now, the Canada Deposit Insurance Corp. will guarantee Canadians’ deposits up to $100,000 in the event of a bank failure as long as they’re held with a member institution.

All large Canadian banks and many other financial institutions are a part of the CDIC framework, which covers most deposits and guaranteed investment certificates but not mutual funds, stocks, bonds or cryptocurrencies.

Finance Canada is asking Canadians and other stakeholders in the financial system to weigh in on the proposed higher limit and a few other potential changes by Sept. 26.

The department is also consulting on extending coverage for temporarily high balances tied to a disruptive life event and requiring banks to offer more upfront information to customers about what CDIC insurance covers.

Ottawa’s last review of the deposit insurance framework kicked off over a decade ago and saw coverage expanded for foreign currencies in 2018.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.