About your CDIC coverage

Your deposits continue to be insured following the migration of your Laurentian Bank products and services.

Protecting your deposits

The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that contributes to the stability of the Canadian financial system. It provides deposit insurance against the loss of all or part of eligible deposits at member institutions in the event of failure. The CDIC covers certain eligible deposits in Canadian and foreign currency for up to 100,000 CAD in each of CDIC’s insurance categories, and applies to deposits held in trust, joint accounts and registered and non-registered accounts.

Covered by CDIC

  • Deposits in Canadian or foreign currency
  • Term deposits, including Guaranteed Investment Certificates (GICs)
  • Bank drafts and money orders

Not covered by CDIC

  • Stocks
  • Bonds
  • Mutual funds
  • Exchange-Traded Funds (ETFs) 
  • Cryptocurrencies

Good to know:

After the migration of Laurentian Bank products and services to National Bank, some of your investment products with National Bank Trust may be protected by the Autorité des marchés financiers (AMF). Certain restrictions may apply to Ontario and Newfoundland residents. For more information, visit the AMF website. 

What happens to my current CDIC coverage?

If two or more CDIC member institutions merge, insured deposits made at each institution before the merger continue to be insured separately up to $100,000 per depositor per category, as if the institutions had not combined. This separate coverage applies for two years after the merger, less any withdrawals from those deposits or until term deposits mature or are redeemed.

 

In other words, a client’s insured deposits at Laurentian Bank and National Bank of Canada before the migration will continue to be insured separately. 

 

This coverage applies up to $100,000 per depositor per category for two years after the merger, less any withdrawals from those deposits or until term deposits mature or are redeemed. The amount of separate coverage is adjusted according to withdrawals from those deposits, or the maturation or redemption of term deposits, as per CDIC regulations.

 

Please speak to your account manager for more information.

How new deposits are covered

Coverage for new deposits at National Bank after the migration depends on the total deposits the client had at the member institutions before they merged. For example:

 

  • If your total deposits in a category already exceeded $100,000 before the merger, then new deposits will not be insured by the CDIC.
  • If your total deposits in a category are still under $100,000, then new eligible deposits made at National Bank will be added and insured up to $100,000.

Examples of CDIC coverage

Here are several examples of how the migration might affect your CDIC coverage.

How does coverage change after a merger?

In this case, National Bank is taking over deposits from Laurentian Bank, two CDIC member institutions.

 

Insured deposits at each institution continue to be separately insured up to $100,000 per depositor per category, as if the institutions had remained separate legal entities for a period of two years after the merger, less any withdrawals made from those separate deposits, and as term deposits mature or are redeemed. 

For ease of reference in the following examples:

  • Following the migration, the Laurentian Bank savings account will be referred to as the National Bank savings account.
  • Following the migration, the Laurentian Bank guaranteed investment certificate (GIC) will be referred to as the National Bank guaranteed investment certificate (GIC).

Example 1: You have the following deposits with National Bank and Laurentian Bank entities before the migration.

 

Here’s what does ✓ and does not ✗ qualify for CDIC coverage:

 

Before the merger:

 

✓ $100,000 in a NBC GIC maturing in 5 years

 

✓ $80,000 in a Laurentian Bank savings account

 

✓ $20,000 in a Laurentian Bank GIC maturing in 1 year

 

CDIC Coverage: $200,000

 

After the merger:

 

✓ $100,000 in a National Bank GIC maturing in 5 years

 

✓ $80,000 in a National Bank savings account (formerly Laurentian Bank savings account)

 

✓ $20,000 in a National Bank GIC (formerly Laurentian Bank GIC) maturing in 1 year

 

CDIC Coverage: $200,000

 

Before and after the migration, you have $200,000 in coverage ($100,000 per institution). For two years following the migration date, the coverage continues as if Laurentian Bank’s deposits had not been migrated to National Bank, except any withdrawals from those deposits, and for term deposits where coverage extends until maturity.

 

How does the coverage change in case of withdrawals, term deposit maturities and renewals, or new deposits?

 

Withdrawals, term deposit renewals/redemptions, and new deposits made after the merger affect coverage. Let’s look at a few cases below.

Example 2: Soon after the merger, you make a $40,000 withdrawal from your NBC savings account (formerly the Laurentian Bank savings account).

 

Here’s what does ✓ and does not ✗ qualify for CDIC coverage:

 

Before the $40,000 withdrawal: 

 

✓ $100,000 in a National Bank GIC maturing in 5 years 

 

✓ $80,000 in a National Bank savings account (formerly the Laurentian Bank savings account) 

 

✓ $20,000 in a National Bank GIC (formerly a Laurentian Bank GIC) maturing in 1 year 

 

CDIC Coverage: $200,000

 

After the $40,000 withdrawal: 

 

✓ $100,000 in a National Bank GIC maturing in 5 years

 

✓ $40,000 in a National Bank savings account (formerly the Laurentian Bank savings account)

 

✓ $20,000 in a National Bank GIC (formerly a Laurentian Bank GIC) maturing in 1 year

 

CDIC Coverage: $160,000

 

Since you withdrew $40,000 from the NBC savings account (formerly the Laurentian Bank savings account), you now have $160,000 in coverage.

 

    

Example 3: 15 months after the migration, one of your GICs matures.

 

Here’s what does ✓ and does not ✗ qualify for CDIC coverage:

 

Before the 1-year GIC matures:

 

✓ $100,000 in a National Bank GIC maturing in 5 years

 

✓ $40,000 in a National Bank savings account (formerly a Laurentian Bank savings account)

 

✓ $20,000 in a National Bank GIC (formerly a Laurentian Bank GIC) maturing in 1 year

 

CDIC Coverage: $160,000

 

After the 1-year GIC matures:

 

✓ $100,000 in a National Bank GIC maturing in 5 years

 

✓ $40,000 in a National Bank savings account (formerly the Laurentian Bank savings account)

 

✗ Maturity amount of a $20,000 National Bank GIC (formerly a Laurentian Bank GIC)

 

CDIC Coverage: $140,000

 

Now that your one-year National Bank GIC (formerly a Laurentian Bank GIC) has matured, you have $140,000 in coverage since CDIC coverage stops as term deposits mature.

 

 

Example 4: 15 months after the migration, you make a new deposit of $70,000 in your National Bank savings account (formerly the Laurentian Bank savings account).

 

Here’s what does ✓ and does not ✗ qualify for CDIC coverage:

 

Before the deposit of $70,000 in the savings account: 

 

✓ $100,000 in a National Bank GIC maturing in 5 years 

 

✓ $40,000 in a National Bank savings account (formerly the Laurentian Bank savings account) 

 

CDIC Coverage: $140,000

 

After the $70,000 deposit in the savings account:

 

✓ $100,000 in a National Bank GIC maturing in 5 years

 

✓ $40,000 in a National Bank savings account (formerly the Laurentian Bank savings account)

 

✗ New deposit of $70,000 after the merger

 

CDIC Coverage: $140,000

 

Your new $70,000 deposit to a National Bank savings account (formerly a Laurentian Bank savings account) is not covered as it was made after the merger. Only the existing $40,000 in the National Bank savings account (formerly the Laurentian Bank savings account) is covered.

Example 5: 18 months after the migration, you withdraw $15,000 from your savings account.

 

Here’s what does ✓ and does not ✗ qualify for CDIC coverage:

 

Before the $15,000 withdrawal from the savings account:

 

✓ $100,000 in a National Bank GIC maturing in 5 years

 

✓ $40,000 in a National Bank savings account (formerly the Laurentian Bank savings account)

 

✗ $70,000 new deposit after the merger

 

CDIC Coverage: $140,000

 

After the $15,000 withdrawal from the savings account: 

 

✓ $100,000 in a National Bank GIC maturing in 5 years 

 

✓ $25,000 in a National Bank savings account (formerly the Laurentian Bank savings account) 

 

✗ $70,000 new deposit after the merger

 

CDIC Coverage: $125,000

 

The new post-merger $15,000 withdrawal decreases the coverage, and only $25,000 in the National Bank savings account (formerly the Laurentian Bank savings account) is now covered.

Example 6: Two years after the migration, the CDIC’s two-year post-merger coverage ends.

 

Here’s what does ✓ and does not ✗ qualify for CDIC coverage:

 

Before the post-merger coverage stops:

 

✓ $100,000 in a National Bank GIC maturing in 5 years

 

✓ $25,000 in a National Bank savings account (formerly the Laurentian Bank savings account)

 

✗ $70,000 new deposit after the merger

 

CDIC Coverage: $125,000

 

After the post-merger coverage stops:

 

✓ $100,000 in a National Bank GIC maturing in 5 years

 

✗ $25,000 in a National Bank savings account (formerly the Laurentian Bank savings account)

 

✗ $70,000 new deposit after the merger  

 

CDIC Coverage: $100,000

 

Since grandfathering is no longer relevant in this scenario, the coverage now extends to only one deposit insurance limit of $100,000 under the ''Deposits held in one name'' category. With your 5-year, $100,000 National Bank GIC, you already have the maximum coverage possible ($100,000).

Example 7: About 2 years and 4 months after the migration, you inherit $150,000 from your grandfather and wish to invest the whole amount in GICs.  Although you may have already reached the maximum CDIC coverage for National Bank, there may be other options to maximize your coverage. We recommend speaking to a financial advisor or your relationship manager.

 

How is coverage affected two years after the merger?

 

Two years after the merger, the CDIC coverage ceases, as if the migration to National Bank had not occurred.

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