6

$100K CAD appears a low maximum, esp. for retirees. FDIC does so until $250K USD.

  • 1
    It makes me wonder how millionaires don’t worry about losing their wealth. – Rich Feb 22 '18 at 13:01
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    Magua'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 Sarwate Feb 22 '18 at 18:10
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    Relevant questions from the Economics board: economics.stackexchange.com/questions/5308/… – Gramatik Feb 26 '18 at 21:22
  • Why would you keep more than $100K in a bank account, rather than investing it? – jamesqf Feb 26 '18 at 22:41
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    @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%? – Greek - Area 51 Proposal Feb 28 '18 at 0:23
12

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.

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