Canada Deposit Insurance Corporation
The Canada Deposit Insurance Corporation (CDIC) is a government organization that helps protect people's money if their bank goes out of business or can't pay them back.
Think of it like a piggy bank. When you put your money in a real piggy bank, you know that you can always take it out later, even if you accidentally break the piggy bank. The CDIC is sort of like that, but for banks.
When you put your money in a bank, the bank lends that money to other people to make money. But what if some of those people can't pay the bank back? What if the bank itself gets in trouble?
That's where the CDIC comes in. It makes sure that your money is still safe and that you can still get it back even if the bank can't pay you back. Basically, the CDIC insures your money in case something goes wrong with the bank.
This insurance is free and automatic, so you don't have to do anything to sign up for it. It covers up to $100,000 per account type (like a savings account or chequing account).
So, if your bank has problems and can't give you your money back, the CDIC will step in and give you your money up to $100,000. This means that you can feel safe and secure keeping your money in a Canadian bank, knowing that the CDIC is there to protect your money.
Think of it like a piggy bank. When you put your money in a real piggy bank, you know that you can always take it out later, even if you accidentally break the piggy bank. The CDIC is sort of like that, but for banks.
When you put your money in a bank, the bank lends that money to other people to make money. But what if some of those people can't pay the bank back? What if the bank itself gets in trouble?
That's where the CDIC comes in. It makes sure that your money is still safe and that you can still get it back even if the bank can't pay you back. Basically, the CDIC insures your money in case something goes wrong with the bank.
This insurance is free and automatic, so you don't have to do anything to sign up for it. It covers up to $100,000 per account type (like a savings account or chequing account).
So, if your bank has problems and can't give you your money back, the CDIC will step in and give you your money up to $100,000. This means that you can feel safe and secure keeping your money in a Canadian bank, knowing that the CDIC is there to protect your money.