Deposit insurance changes explained

Before the continuance and merger

Currently, your deposits with Prospera are insured by the Credit Union Deposit Insurance Corporation of BC (CUDIC), providing unlimited coverage for eligible deposits.

After the continuance and merger

Prospera and Sunshine Coast will continue as federal credit unions and merge with Coast Capital to create a combined federally regulated credit union. Deposits held with the combined federal credit union will be insured by the Canada Deposit Insurance Corporation (CDIC), which provides coverage up to $100,000 per depositor, per deposit category. CDIC is the federal crown corporation that also protects eligible deposits at the major banks and Coast Capital.

Transition period

If the continuance and merger proceed, there will be a transition period for deposit insurance coverage provided by CDIC starting the day the transaction is completed. For deposits held by Prospera members immediately prior to the continuance and merger, CDIC will provide the following coverage:

• Demand deposits (e.g., chequing and savings accounts) will have unlimited coverage for 180 days from the closing date of the continuance and merger.
• Term deposits (e.g., GICs) will continue to have unlimited coverage until the end of the term or when they’re cashed out, whichever comes first.

After the transition period, CDIC’s standard coverage of $100,000 per depositor, per category (as described below) will apply to all deposits with the new credit union.

How CDIC standard deposit insurance coverage works:

CDIC deposit insurance applies automatically and free of charge to cover eligible deposits in the very unlikely event the member institution of CDIC holding the deposit fails. We can help you maximize your deposit insurance coverage by holding funds in multiple categories.

CDIC offers $100,000 insurance per separately insured category:

• Deposits held in one name
• Deposits held in more than one name (joint deposits)
• Deposits in a trust account
• Deposits in a TFSA
• Deposits in an RRSP
• Deposits in an RRIF
• Deposits held in an RESP
• Deposits held in an RDSP
• Deposits held in an FHSA

Things to note:

• Joint name unique combinations are insured separately (shifting the order of joint names would not be separately insured).
• Principal and interest are included in the amount insured.
• Mutual funds and ETFs are not covered by CUDIC or CDIC.
• Through stacking and rearranging your eligible deposits in multiple categories, we can help you maximize your deposit insurance coverage.