All member deposits, with the exception of Mutual Funds, Share Account Balances and US Accounts are insured through the Deposit Insurance Corporation of Ontario (DICO). DICO is a provincial government body whose mandate is to insure member deposits.
Individual non-registered accounts are insured up to a total of $100,000. Joint non-registered accounts are also insured independently of individual accounts. This means an individual could be listed as the owner of an individual account and joint holder of a joint account and both accounts would be insured for $100,000 each. There are no limits to the number of joint accounts a member can hold but each joint account must list different account holders to qualify for separate coverage.
Term Deposits carry a guarantee that at maturity both the principal and interest will be paid to the member at the rate agreed to when the investment was purchased. This guarantee is primarily issued by Southwest Regional Credit Union Ltd. and secondarily by DICO.
Registered accounts (ie. RRSPs, RRIFs, Tax-Free Savings Accounts) are handled differently when it comes to insurance coverage. All eligible deposits made to any registered savings plan are fully insured with no maximum limit.
The DICO equivalent for chartered banks is the Canadian Deposit Insurance Corporation (CDIC), a government agency with a mandate to ensure federally regulated institutions. One major difference between DICO and CDIC is that through DICO, Credit Unions are able to insure any registered deposit in term deposit or demand account business. Banks, on the other hand, are limited to $100,000. Most times they are able to extend this limit by filtering money through different divisions of the banks or associated companies. In most cases they can only insure about $300,000, $100,000 through three different companies. Essentially, Credit Unions can insure any limit under registered contracts.
For additional information on deposit insurance coverage, you can contact DICO at 1-800-268-6653 or view their website.