Financial Services Regulatory Authority of Ontario’s (FSRA) deposit insurance program protects insurable deposits held with Ontario credit unions and caisses populaires. Deposit insurance is part of a comprehensive depositor protection program that ensures the safety and soundness of credit unions and caisses populaires.
The liability of FSRA to insure deposits held at Ontario credit unions is limited to the assets of the Deposit Insurance Reserve Fund.
To be eligible for deposit insurance coverage, you must be a member of the credit union or caisse populaire. Deposit insurance coverage is provided by the Deposit Insurance Reserve Fund administered by FSRA and pre-funded by Ontario credit unions and caisses populaires at no cost to depositors.
All credit unions and caisses populaires in Ontario are required to prominently display the official decal provided by FSRA at each of their locations.
Who pays for deposit insurance coverage?
- Credit unions and caisses populaires pay for deposit insurance coverage through premiums paid to FSRA. All insurable deposits held by depositors are automatically covered.
What happens if a credit union or caisse populaire goes out of business?
- Payments for insurable deposits are made as soon as possible
- The payment includes principal and interest up to $250,000 for insurable deposits held in non-registered accounts aggregated together and unlimited for insurable deposits held in registered accounts
- Borrowers from an insolvent credit union or caisse populaire are responsible for repayment of outstanding debt until paid in full and will be notified by letter from FSRA with specifics, including any exercise of a right of set-off against deposits or deposit insurance payments to assist in such repayment
As an account owner what can I do to ensure complete and prompt payment if my credit union or caisse populaire fails?
- Ensure your credit union or caisse populaire always has your current and complete contact information;
- Understand what’s covered and what’s not.
Note: All amounts include principal and interest payable in Canada (in Canadian dollars)