Deposit insurance protects your money.
You can be confident when you make deposits at a protected credit union because your money, up to the coverage limits, is safeguarded from loss.
For members of credit unions, the New Brunswick Credit Union Deposit Insurance Corporation (NBCUDIC) provides deposit insurance against loss.
For credit unions, we protect against financial losses by maintaining a deposit protection fund, and by providing financial assistance, when needed, for the purpose of stabilization.
NBCUDIC is an agent of the Crown of the Province of New Brunswick that provides deposit insurance to members of provincial credit unions. NBCUDIC does not provide deposit insurance to members of a federal credit union or caisse populaire. NBCUDIC is governed by the provisions of the Credit Unions Act.
$250,000 of coverage per category
Members of New Brunswick credit unions with NBCUDIC insurance receive coverage of up to $250,000 in each of the eight categories of savings cited below. Since every category comes with its own, separate coverage of up to $250,000, if you have savings in four categories, you have a combined coverage of up to $1,500,000, depending on your account balances. The eight categories are:
- Eligible deposits in one name are covered to a maximum of $250,000
- Eligible deposits in two or more names are covered to a maximum of $250,000
- Eligible deposits held in trust for another/others are covered to a maximum of $250,000
- Eligible deposits held in Registered Retirement Saving Plans (RRSPs) are covered to a maximum of $250,000
- Eligible deposits held in Registered Retirement Income Funds (RRIFs)are covered to a maximum of $250,000
- Eligible deposits held in Tax Free Savings Accounts (TFSAs) are covered to a maximum of $250,000
- Eligible deposits held in Registered Education Savings Plans (RESPs) are covered to a maximum of $250,000
- Eligible deposits held in Registered Disability Savings Plans (RDSPs) are covered to a maximum of $250,000
- Eligible deposits held in First Home Savings Accounts (FHSAs) are covered to a maximum of $250,000
Eligible deposits include a combination of savings accounts, chequing accounts, term deposits and guaranteed investment certificates (GICs), money orders, drafts, and certified cheques. Balances held in foreign currencies are included in eligible deposits.
Investments and deposits not covered
NBCUDIC does not insure all accounts and financial products. The following are not covered by deposit insurance:
- investments in mortgages, mutual funds, and stocks
- bonds and debentures issued by governments and corporations
- membership shares and other types of shares issued by a credit union
- treasury bills
- deposits made at banks and trust companies
- deposits made at credit unions or caisses populaires that are not incorporated under provincial legislation
The fine print
Joint deposits—deposits owned jointly with someone else—are insured separately from deposits in your own name. The maximum insurance for all eligible deposits having the same joint owners at each member credit union is $250,000 collectively—not per individual owner. To qualify:
The deposit must be jointly owned.
The records of the credit union must identify the name and address of each joint owner.
Trust deposits—deposits held in trust accounts—are insured separately from deposits owned by the trustee or beneficiary. If a trust has more than one beneficiary, each beneficiary’s portion is insured up to $250,000. Eligible deposits having both the same trustee and the same beneficiary are combined, and the total is insured to a maximum of $250,000. To qualify:
The credit union’s records must identify the name and address of the trustee(s), the name and address of the beneficiary(ies), and the interest of each beneficiary.
The deposits must be held in trust.
Registered plans are insured separately from the other deposits held by a member. Registered deposits include RRSPs, RRIFs, RESPs, RDSPs, TFSAs and FHSAs of a member. All eligible RRSP deposits of a member are combined to determine the amount insured up to a maximum of $250,000. The same applies to RRIF, RESP, RDSP, TFSA and FHSA eligible deposits.