Credit Union Deposit Insurance Corporation (CUDIC)
The Credit Union Deposit Insurance Corporation (CUDIC) was incorporated under the laws of Prince Edward Island to protect the money you deposit in Credit Unions. Subsection 173(9) of the Credit Unions Act provides that the Government of Prince Edward Island will ensure that this obligation of the Corporation is carried out.
Click Here to Visit CUDIC's Website
Are all Prince Edward Island Credit Unions members of CUDIC?
Yes, all PEI Credit unions are required to be members of CUDIC. The Inspector of Credit Unions examines them at least annually.
What does CUDIC insure?
Insurable deposits include:
- Membership Share Accounts;
- Savings and Chequing Accounts;
- Term Deposits;
- Money Orders;
- Drafts;
- Certified Drafts and Cheques.
To be eligible for deposit insurance protection, deposits must be payable in Canadian currency. Deposits must also be repayable no later than five years after the date of deposit. A depositor may be an individual, an association of individuals, a corporation, an association of corporations or a government.
What is not covered?
Not all deposits and investments are insurable. For example, CUDIC does not insure:
- Foreign Currency Deposits (Savings Accounts, Chequing Accounts and Term Deposits);
- Term Deposits that are locked in longer than five years;
- Debentures issued by a Credit Union;
- Bonds and Debentures issued by governments and corporations;
- Treasury Bills
- Investments in Mortgages, Stocks and Mutual Funds.
What is the maximum insurance protection?
Basic Protection
The maximum basic protection that you can have with the same Credit Union is $125,000 (principal and interest combined). The $125,000 maximum, therefore, applies to all the insurable deposits that you have with the same member. Deposits are not insured separately in each branch of a Credit Union.
Separate Protection:
CUDIC provides separate protection for joint deposits; trust deposits and deposits held in Registered Retirement Savings Plans (RRSPs) and in Registered Retirement Income Funds (RRIFs).
Joint Deposits
If you have a deposit in your name as well as a deposit that is owned jointly with someone else, the deposit is insured separately. The maximum insurance for the same joint owners with the same Credit Union is $125,000.
Trust Deposits
If you are a trustee for another person, and the trusteeship is on record with the Credit Union, the deposit is insured separately from other deposits that you have in your own name. This deposit is also insured separately from the deposits made directly by the beneficiary.
A Trust Deposit can have more than one beneficiary. If the member institution has on its records a breakdown of the interest of each person holding money in the deposit, each beneficiary is insured up to $125,000.
Registered Plans
CUDIC insures the total value of deposits held in Registered Retirement Savings Plans and Registered Retirement Income Funds as defined in the Income Tax Act (Canada).
To be insurable, the funds must be invested in Savings Accounts or in Term Deposits that meet the five year requirement and must be payable in Canadian currency.
What If I have deposits in one Credit Union, does this affect my coverage limits for deposits in another Credit Union?
No, your deposits in each Credit Union are separate and distinct and the limits apply to each Credit Union separately. Eligible deposits in one Credit Union do not affect the limits for eligible deposits in another Credit Union.
Contact Us
Mailing Address:
PO Box 20103, RPO Sherwood
161 St.Peter’s Road
Charlottetown PE C1A 5P0
Canada
Telephone:
(902) 628-6280
Fax Number:
(902) 628-8147
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