FSRA provides separate deposit insurance protection up to $250,000 for the deposits held in the name of a corporation, partnership or association. Each account must be designated on the credit union's records by name and the credit union must maintain copies of the appropriate supporting documentation.

Eligible types of businesses include:

  • Corporations (registered under either the provincial or federal Corporations Act)
  • Partnerships (registered with partnership agreement)
  • Associations (e.g. community hockey association)

Deposits for eligible business accounts are insured separately from deposits held in the names of any of the individual principals.

Note: Deposits of a Sole Proprietorship business are not separately insured from other deposits held in the name of the individual owner.

Does the number of signatories on a business account increase the amount of deposit insurance protection?

No. The maximum insurance protection is $250,000 for the business entity.

How is the limit for deposit insurance protection calculated for deposits held in the name of a business?

FSRA insures deposits of a business at each Ontario credit union up to a maximum of $250,000 for all business types, except sole proprietorships.

Deposits for eligible business accounts are insured separately from deposits held in the names of any of the individual principals. Eligible deposits in the name of a business will be insured separately from eligible deposits in individual accounts or accounts in the name(s) of the business owner(s), if the business is a partnership or an incorporated business.

How is the deposit insurance protection limit calculated for sole proprietorships?

“Sole Proprietorships” do not benefit from separate deposit insurance protection as they are not separate legal entities. As a result, deposits in the individual’s name will be combined with the deposits of the “sole proprietorship”. To be eligible for FSRA deposit insurance, deposits must be payable in Canada, in Canadian currency, by an Ontario credit union.

Deposits Held in the Name of a Corporation, Partnership or Association

Example 1:

FSRA would provide deposit insurance protection for the $105,000 held in your individual account, plus the $250,000 for your business account, if you held the following deposits in an Ontario credit union.

Deposit

Amount

Your name

Savings account

$25,000

Chequing account

$5,000

RRSP - term deposit

$75,000

Total deposits at this credit union

$105,000

Total deposits covered by FSRA

$105,000

Your Business (Corporation)

Current account

$50,000

Term deposit

$225,000

Total business deposits at this credit union

$275,000

Total deposits covered by FSRA

$250,000

Uninsured deposits

$25,000

Example 2: Individual with Sole Proprietorship account

FSRA would provide deposit insurance protection for the $250,000 held in the non-registered accounts. Funds held in your sole proprietorship business account are not insured separately from the accounts held in your individual accounts. Your registered deposits are fully insured.

Deposit

Amount

Your name

Savings account

$150,000

Chequing account

$10,000

RRSP

$200,000

Your Sole Proprietorship Business

Current account

$40,000

Term deposit

$60,000

Total deposits at this credit union

$460,000

Total non-registered deposits covered by FSRA

$250,000

Total registered deposits covered by FSRA

$200,000

Uninsured deposits

$10,000