Is my RRSP protected? CDIC, CIPF, Assuris and creditors
An RRSP is not one kind of product, so there is no single guarantee. Deposits in an RRSP at a bank can be insured by CDIC, investments held at a dealer are protected by CIPF if the dealer fails, insurance-company plans are covered by Assuris, and federal bankruptcy law shields most RRSP and RRIF savings from creditors. None of these protect you from investment losses.
This page's address dates from the 1990s, when some Canadians were asking whether their savings were safe around the time of the 1995 Quebec referendum; the questions about protection remain the same.
- $100,000CDIC coverage per insured category, per member institution
- $1 millionCIPF coverage per account group, per member firm
- 12 monthsRRSP contributions before bankruptcy that are not exempt
CDIC: deposits at banks and other members
The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation. If a member institution fails, it protects eligible deposits, including principal and interest, up to $100,000 in each insured category. Coverage is free and automatic. Eligible deposits include deposits in Canadian or foreign currency, GICs and other term deposits.
Deposits held inside registered plans are separate categories, so they don't share the $100,000 limit with your regular accounts. The insured categories are:
- Deposits held in one name
- Joint deposits (held in more than one name)
- Deposits in RRSPs
- Deposits in RRIFs
- Deposits in TFSAs
- Deposits in RDSPs
- Deposits in RESPs
- Deposits in FHSAs
- Trust deposits
Example: at one CDIC member bank you have $60,000 in a savings account, a $90,000 GIC in your RRSP and $40,000 in a TFSA savings account. Each sits in a different category, so all $190,000 is covered. If instead your RRSP held $150,000 of GICs at that one bank, only $100,000 of the RRSP deposits would be insured; spreading them over two separate member institutions would bring both portions under coverage.
What CDIC does not cover
- Mutual funds
- Stocks and bonds
- Exchange-traded funds (ETFs)
- Cryptocurrencies, including stablecoins
This is true even when you buy these products at a bank branch. Not every deposit-taking institution is a CDIC member; CDIC's website lets you check. If yours isn't listed, ask the institution which protection, if any, applies.
CIPF: if your investment dealer fails
If your RRSP holds stocks, bonds, ETFs or mutual funds through an investment dealer that is a member of the Canadian Investor Protection Fund (CIPF), CIPF steps in if that dealer becomes insolvent and your property is missing. For an individual the limits are generally:
- $1 million for all general accounts combined (cash and margin accounts, TFSAs and FHSAs);
- plus $1 million for all registered retirement accounts combined (RRSPs, RRIFs, LIFs and similar);
- plus $1 million for all RESPs combined where you are the subscriber.
Not market protection. CIPF returns property a failed member firm should have been holding for you. It does not guarantee the value of your investments and does not protect against any other type of risk or loss, such as falling markets. Crypto assets are excluded.
Assuris: plans with insurance companies
Some RRSPs and RRIFs are set up with a life insurance company, usually as segregated funds or accumulation annuities. Every life and health insurer authorised in Canada must be a member of Assuris, a not-for-profit organisation that protects policyholders if their insurer fails. For investment and savings products, Assuris protects $100,000 or 90% of the promised value, whichever is higher. For segregated funds, what is protected is the guarantee in the contract, not the market value lost in a downturn.
Protection from creditors
If you go bankrupt, the federal Bankruptcy and Insolvency Act exempts property in an RRSP, a RRIF or an RDSP from what is divided among your creditors, except property contributed in the 12 months before the date of bankruptcy. That rule stops people from moving cash into an RRSP just before declaring bankruptcy.
Example: Lee's RRSP holds $80,000, of which $10,000 was contributed 8 months before Lee's bankruptcy. The $70,000 contributed earlier is generally exempt; the $10,000 can be claimed for creditors.
Other points:
- Provincial rules differ. The federal Office of the Superintendent of Bankruptcy notes that assets which can be kept, including certain RRSPs, RRIFs, pension plans and insurance contracts, vary from province to province. Protection outside bankruptcy (for example, against a lawsuit judgment) depends on provincial law.
- Insurance-company RRSPs. Because insurance contracts are treated differently, an RRSP held as an insurance contract, with a beneficiary named in the contract, may have added protection under provincial insurance law. Whether it applies depends on the province, who the beneficiary is and the circumstances. Don't buy a product only for this reason; get legal advice.
If you are struggling with debt, a licensed insolvency trustee can explain your options, including how your RRSP would be treated. Be wary of anyone who asks you to move retirement savings to "protect" them; see RRSP scams.
Quick summary
| What is in your RRSP | Protection if the institution fails | Limit |
|---|---|---|
| Savings deposits or GICs at a CDIC member | CDIC | $100,000 per category per member |
| Stocks, bonds, ETFs, mutual funds at a CIPF member dealer | CIPF (custody only, not market losses) | $1 million for retirement accounts combined |
| Segregated funds or annuities at a life insurer | Assuris | $100,000 or 90%, whichever is higher |
| Crypto assets | None of the above | None |