What is a bank deposit?
A bank deposit is an amount of money that you deposit in a bank. When characterizing a deposit, it is worth paying attention to its main properties:
- Storage: Deposit involves the storage of the client's funds in his account.
- Interest: Most banks charge interest on the amount of the deposit. The amount of interest may vary depending on the type of bank deposit, the amount and term of the funds placement
- Term: Individuals have the opportunity to make a deposit for a certain period or an indefinite period
- Withdrawal: A bank deposit provides for the possibility of withdrawing funds as needed. Depending on the type of deposit, early withdrawal, free withdrawal or a ban on withdrawal before the end of the term may be provided
Thus, a deposit is not only a reliable way to store money, but also an opportunity to receive additional income in the form of interest.
How much are deposits guaranteed in Canada?
Before making a deposit, many depositors are interested in the question: what deposit amount is guaranteed by the Canadian Deposit Insurance Corporation? No matter how reliable Canada's banking system is, there is always the risk of a crisis or other unforeseen circumstances. Therefore, most Canadians regularly inquire about the amount guaranteed, so as not to take risks.
As of today, the Canadian Deposit Insurance Corporation (CDIC) guarantees deposits of up to $100,000 per depositor in each insured category at each member institution. That is, we are talking about the total amount per depositor in savings accounts, current accounts and time deposits (GIC, with a term of five years or less).