How are deposits protected?
Credit unions are required to hold retained earnings to offset unforeseen contingencies.
Credit unions contribute annually to a guarantee fund managed by Credit Union Deposit Guarantee Corporation.
Credit unions are required to operate in a prudent manner by complying with provincial legislation and standards of sound business practice. As a result, potential for loss is minimal.
How will I know if my deposits at the credit union are insured, or guaranteed?
Deposits held in all Saskatchewan credit unions are guaranteed. If you would like confirmation your deposits are fully guaranteed, speak to your local credit union representative or contact us. In addition, you can look for the Corporation’s logo displayed in your local credit union.
Do I have to be a member of the credit union to qualify for the guarantee?
No. The Credit Union Act, 1998, permits credit unions to provide services to the general public. Deposit protection through the Credit Union Deposit Guarantee Corporation is provided to all depositors of the credit union.
Who pays the cost of deposit insurance?
Guarantee assessments are charged by Deposit Guarantee Corporation to credit unions on an annual basis.
Does "full amount" mean more than $60,000?
Yes, there is no limit to a depositor’s valid claim regardless of the amount on deposit – whether $100 or $1,000,000 or more.
What exactly is covered by the guarantee?
The guarantee applies to all forms of personal, business and trust deposits including, but not limited to chequing, savings, term deposits and registered plans that are comprised of deposits in the credit unions, and includes accrued interest.
What is not covered by the guarantee?
Contents of safety deposit boxes, securities held for safekeeping, RRSPs that are not a deposit with a credit union or brokered securities. The guarantee does not cover any form of equity or capital such as membership or investment shares. The guarantee does not apply to mutual funds or other investment programs that are not credit union deposits.
Why are safety deposit box contents not covered?
The safety deposit box is rented from a credit union to house one’s personal belongings. The contents of the box are not considered deposits made to the credit union and therefore no deposit protection exists through the credit union and Deposit Guarantee Corporation.
Why are mutual funds and securities not covered by the guarantee?
Mutual funds and securities are investments purchased by an agent who invests in other companies on your behalf. The investments are not deposits made to the credit union, therefore, they are not covered by the guarantee.
Why aren’t shares and equity included in the guarantee?
Shares and equity are considered investments. They are not deposits.
Is interest on deposits included as part of the guarantee?
Yes, interest is included.
How does the credit union guarantee compare to deposit insurance at banks and trust companies?
Credit unions are provincially regulated and have provincial deposit protection programs in place. In Saskatchewan, the Deposit Guarantee Corporation fully guarantees all (no dollar limit) deposits held in Saskatchewan credit unions. Banks are federally regulated and provide deposit insurance limits through Canada Deposit Insurance Corporation.
Is the same level of deposit protection provided in other provinces?
No, due to the fact that credit unions are provincially regulated, the extent of deposit protection provided varies from province to province.
What happens to my deposits in a credit union if I die?
In the event of death, all deposits, including RRSPs, become part of a depositor’s estate. The money is covered by the guarantee as long as it remains in a Saskatchewan credit union.
How long has the Corporation been around?
The Corporation was established in 1953 and was initially called the Mutual Aid Board. The name was changed in 1983 to better reflect our purpose.
Who is the Corporation accountable to?
The Corporation is accountable to the Government of Saskatchewan’s Registrar of Credit Unions and is independently audited on an annual basis.
If your questions have not been addressed please contact us.
