$100K CAD appears a low maximum, esp. for retirees. FDIC does so until $250K USD.
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1It makes me wonder how millionaires don’t worry about losing their wealth.– RichCommented Feb 22, 2018 at 13:01
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1Magua'a answer suggests that the coverage is per account and not per person, and so, the low coverage might just be a subtle hint to retirees not have all their money sitting in one account in one bank, but to spread their wealth into multiple smaller accounts in different banks. Don't put all your eggs in one basket....– Dilip SarwateCommented Feb 22, 2018 at 18:10
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1Relevant questions from the Economics board: economics.stackexchange.com/questions/5308/…– GramatikCommented Feb 26, 2018 at 21:22
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Why would you keep more than $100K in a bank account, rather than investing it?– jamesqfCommented Feb 26, 2018 at 22:41
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1@jamesqf 1. What if a Canadian need maintain >$100K in the bank account for sudden purchases? Like a house, if they're hoping for a sudden price drop? 2. In what other liquid investment would they invest that's better than EQ Bank's 2.3%?– user10763Commented Feb 28, 2018 at 0:23
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1 Answer
Because it only needs to insure enough to inspire confidence in the system, and seeing as people use the Canadian banking system, it is successful.
Unrelatedly, you can get multiple coverages from the CDIC for having a joint account, accounts at other banks, in Registered Retirement Plans, etc.
