I remember when my Nana passed away; we were cleaning up her house and finding money in envelopes that she stuffed away between the mattresses. And then a few years later, when I was working at a car dealership, an elderly lady come in and payed for her car in cash in FULL.
Even back then, when bank cards were just coming out and online banking did not exist, I couldn’t imagine why they wouldn’t have just put all that money in the bank? To me it did not seem safe at all to have money lying around and not safe and sound in the bank. These days, I am hard pressed to actually have cash at all in my wallet. I am reliant on my bank card and the money just being in the bank.
It never really dawned on me why my Nana and this other lady wouldn’t trust having their money in the bank until someone reminded me that they probably were children of the depression era and saw their families or people that they knew lose everything when banks closed and took their money with them.
But banks don’t close these days, do they? My money is safe……isn’t it? But what if something happened and the economy suddenly crashed like it did in the 1930s? Being a single Mom with one income, I need every penny of that pay cheque to be there for me, my bills and what little savings I have. I can’t even imagine what I would do if my bank suddenly failed.
Single income families like my own cannot take any risks with our money. We need to ensure that what is ours stays ours. I know many of these families already have sleepless nights worrying about making ends meet and accumulating what little savings they can, so worrying about our banks closing and losing everything is not something we want to add to our troubles.
Luckily, I can rely on the Canada Deposit Insurance Corporation (CDIC) to protect my money. If you have never heard of CDIC, you’re not alone – less than half of Canadian women have. CDIC is a federal Crown corporation that protects your deposits up to $100,000 per financial category with banks that are CDIC members. The coverage is free and automatic; there is nothing you need to sign up for, and in the event of a failure, you don’t have to file any claims.
Since its creation in 1967, CDIC has dealt with the failure of 43 institutions. I was actually shocked when I read this information. I didn’t think banks failed in this day and age. But I guess I was wrong, and knowing that my savings are being taken care of if there is ever a problem made be breathe a little sigh of relief.
However, be aware that not all deposits are covered by CDIC.
What is covered:
- Savings accounts
- Chequing accounts
- Term deposits, (such as GICs) with original terms to maturity of five years or less
- Cheques certified by CDIC members
- and more
What is not covered:
- Mutual funds (including money market funds), stocks and bonds
- Term deposits, such as GICs, with original terms to maturity greater than five years
- Foreign or digital currency deposits (e.g., U.S. dollars, bitcoin)
- and more
Up until now, I knew where my money was going and being held but I didn’t really know anything about its actual safety. It also gives me a little more insight into where I want to invest and save my money for not only my future but my son’s future as well. I don’t work as hard as I do only to have my money not protected, nor should you.