Ottawa proposes increasing federal deposit insurance protection to $250,000

OTTAWA — The federal government is proposing to more than double deposit insurance protection for Canadians, increasing the maximum coverage provided by the Canada Deposit Insurance Corporation (CDIC) from $100,000 to $250,000.

The measure, included in the federal budget presented November 5, would represent the first increase to the federal deposit insurance limit in more than two decades.

CDIC provides protection for eligible deposits held at member financial institutions in the event of a bank failure. The current $100,000 limit has remained unchanged since 2005.

The proposed increase is intended to modernize Canada’s financial protection framework and account for changes in savings, inflation and the banking sector.

Under the government’s plan, additional protections would also be introduced for unusually large temporary deposits arising from major life events, such as the sale of a home.

Ottawa is also proposing to remove deposit insurance limits for eligible deposits held in registered and tax-free accounts, while introducing mandatory reviews of the federal deposit insurance framework every 10 years.

The measures follow concerns that Canada’s existing insurance limits have fallen behind those of several other major economies.

The federal government maintains that stronger deposit protection will improve consumer confidence and reinforce financial stability.

The changes would require amendments to the Canada Deposit Insurance Corporation Act before taking effect.

The proposed reforms are among several banking and financial-sector measures included in Budget 2026, aimed at improving consumer protection, promoting competition and modernizing Canada’s financial institutions.