In Québec, the Deposit Institutions and Deposit Protection Act ensures that you won’t lose your money if your financial institution ever goes bankrupt.
What is it?
Your deposits are protected up to a maximum of $100,000 per authorized deposit institution, including principal and accrued interest.
Deposits that are protected
Deposits of money, including the most common deposits:
- deposits held in chequing accounts and savings accounts
- term deposits and Guaranteed Investment Certificates (GICs)A guaranteed investment certificate (GIC), also called a certificate of deposit or term deposit, is a security indicating that an investor has lent money to a financial institution. GICs earn interest.
- drafts and certified cheques
For these types of deposits to be protected, they must meet certain conditions. They must:
- be made and payable in Québec
- be in Canadian dollars
- have a term to maturity of five years or less. Deposits with a term to maturity longer than five years are eligible, however, if they are repayable, at any time, on demand by the depositor, after the fifth year.
Deposits that are not protected
Because they do not meet the conditions for a deposit, some savings products are excluded from the deposit protection program.* For example:
- stocks, mutual fundsA mutual fund is made up of money that is pooled by several investors and used on their behalf by a manager to buy shares, bonds or other securities in line with the fund’s objectives. , bondsA bond is a security issued by governments and companies through which an investor lends money to the issuer.
In general, the government or company promises to pay the investor interest at a fixed rate and at certain intervals (for example, 2% per year). Interest is normally paid twice a year. At maturity, the government or company pays back a predetermined amount that is called the face value. The face value is usually $1,000.
There are several types of bonds:
Stripped bondReal return bondConvertible bondSavings bondRetractable bondUnsecured bondEtc. , debenturesA debenture is a fixed-income investment, similar to bonds, except that debentures are generally not backed by specific assets. Also called unsecured bond., mortgage-backed securities and unitsA mortgage-backed security is a type of security tied to a mortgage.
A mortgage loan (a loan secured by a mortgage) is a mortgage-backed security. , sharesA share, also referred to as stock, is an equity security that entitles you to an ownership interest in a company.
The company can distribute a portion of its earnings to shareholders by paying them a dividend.
The shares of companies listed on an exchange are bought and sold at the exchange.
When a company ceases to operate, the proceeds from the sale of its assets are used to pay its debts and taxes, and the rest of the money is distributed to shareholders. or other equity securities
- Treasury billsA treasury bill is a short-term investment guaranteed by a government. It reaches maturity within a year at most. At maturity, the government pays out a greater amount than the amount invested.Un bon du Trésor est un placement à court terme garanti par un gouvernement. L'échéance est d'au maximum un an. À l'échéance, le gouvernement rembourse une somme plus élevée que la somme investie.
- life insurance policies and segregated fundsA segregated fund is a fund issued by insurers. It is similar to a mutual fund, but has additional guarantees. For example, capital may be reimbursed in the event of death, even if your investments have declined in value.
*Certain products may be eligible for other protection programs, such as the Canadian Investor Protection Fund (CIPF) This link will open in a new window, Assuris This link will open in a new window and the Fonds d’indemnisation des services financiers.
Your deposits with deposit institutions displaying this sticker inside or at the entrance to their premises are protected by the AMF.
How are protected deposits repaid?
If an institution goes bankrupt, the AMF will repay the protected deposits. Most deposits will be repaid within seven business days following the bankruptcy.
The repayment of protected deposits is automated, with the AMF issuing a cheque using data received from the institution. With certain exceptions, depositors do not need to contact the AMF or provide supporting documents in order for their protected deposits to be repaid.
The repayment of transaction account deposits will be given priority, so that you receive the funds you need for your daily activities as quickly as possible.
The maximum amount is set at $100,000 per person, per authorized deposit institution, and includes the principal and accrued interest.
For example, while principal and interest combined for a $95,000 investment that earns $7,000 in interest is $102,000, the protection provided by the AMF is $100,000.
Another example: If you make three eligible $50,000 deposits with three different authorized deposit institutions, each deposit, or a total of $150,000, will be protected.
Amalgamation of two authorized institutions
If authorized deposit institutions amalgamate (for example, Desjardins caisses), your protected deposits with the new institution will continue to be protected as if no amalgamation had taken place.
For example, if you hold an $80,000 deposit with institution A and a $40,000 deposit with institution B and the two institutions amalgamate, the amount protected will be $120,000 until the deposits reach maturity or are withdrawn.
Deposits made following the amalgamation will be protected only to the extent that your total deposits with the institution resulting from the amalgamation do not exceed $100,000.
Individuals (including minors)
The protection applies to all deposits belonging to an individual that are held with the same institution. For example, the protection applies to the accounts that are held by:
- you personally
- you and a sole proprietorship owned by you. A firm’s registration in the Registre des entreprises (REQ) This link will open in a new window contains information about its legal form A sole proprietorship does not create a legal person separate from its owner. The deposits of the sole proprietorship and those of its owner, even if they are made to separate accounts, are combined when calculating the maximum deposit protection amount
- you personally and all the accounts for which you are the account owner. For example, if you’re the signatory on the transaction account (account owner) of an association, the association’s deposits and your deposits, even if they are made to separate accounts, are combined when calculating the maximum deposit protection.
A legal person is constituted under a law and has a legal personality separate from that of its owner or owners. A firm’s registration in the REQ This link will open in a new window contains information about its legal form.Examples of legal persons include corporations constituted under a Québec law like the Business Corporations Act or cooperatives constituted under the Act respecting financial services cooperatives. There are also other forms of legal persons, such as non-profit organizations.
Groups of persons
The deposit protection limit applies to all jointly owned deposits with the same authorized deposit institution. The institution’s records must indicate that the deposit is owned by more than one person. For example:
- you and your spouse own a joint account
- you and your fellow partners own a joint account for your firm. A firm’s registration in the REQ This link will open in a new window contains information about its legal formExamples of groups of persons include general partnerships, limited partnerships and joint ventures (undeclared partnerships). A partnership is not a legal person separate from its members (owners). It is established by individuals who agree to operate a business and share in its profits.
Protection that is calculated by category of deposits
Your deposits with an authorized deposit institution are protected up to a maximum of $100,000 in each of the following categories:
- your combined total deposits in non-registered accounts (chequing or transaction account, savings account, term deposit or GIC)
- your combined total deposits in one or more Registered Retirement Savings Plans (RRSPs), including deposits in a Locked-In Retirement Account (LIRA)
- your combined total deposits in one or more Tax-Free Savings Accounts (TFSAs)
- your combined total deposits in one or more Registered Retirement Income Funds (RRIFs), including deposits in a Life Income Fund (LIF)
- the combined total deposits that are jointly held by you (joint deposits)
- deposits you make as a trusteeIn the context of a trust, the trustee is the person who undertakes to hold and administer the assets in the trust on behalf of one or more other individuals or companies. or mandataryA mandatary is the person who carries out a mandate. For example, if an investor gives a lawyer a mandate to carry out a transaction on their behalf, then the lawyer is the mandatary and the investor is the mandator. if the trust or mandate has been entered in the institution’s records. Each beneficiary of a trust is also entitled to protection up to a maximum of $100,000
- amounts deposited and reserved for property taxes (including school and municipal taxes) on a mortgage when received by an authorized deposit institution
Documentation and tools
- Your deposits are protected. That's a guarantee! (pdf - 2 MB)This link will open in a new windowUpdated on 27 October 2014
- Deposit Insurance in Québec 1967 to 2017 (pdf - 3 MB)This link will open in a new windowUpdated on 12 October 2017
- Choosing Investments! (pdf - 6 MB)This link will open in a new windowUpdated on 6 October 2016