Lots of great questions everyone, and thank you! I wanted to pin this FAQ to answer some of them from the CDIC website which should help answer them: www.cdic.ca/what-happens-in-a-failure/
Why didn't you mention the bail in legislation that is now in place? Getting your cash back like Cyprus years later after you lose the opportunity costs and receiving worthless stock is what have people scared. Have you covered the amount of money that is in the CDIC that would cover the depositor's money? I believe it is not very much. By all means clarification would be helpful. The freezing of people's bank accounts who supported the trucking convoy is what caused people to lose faith in the banks.
I think the LACK of an answer indicates that you hit the nail on the head. I also believe america is a sinking ship that will take Europe and us DOWN with them. Not only can we NOT TRUST banks, we now KNOW that we can not trust our government ! This is the most worrisome thing !
So if I put $100,000 into a 1 year GIC with 4% rate, then in case the bank goes bankrupt, I will receive only $100,000 and the $4000 interest is not covered by the CDIC.
Correct, the $100,000 threshold covers principal and interest, so anything above that amount isn’t covered. So in your example a solution would be to get two $50,000 GICs and put them in different categories at the same bank, or have them at different banks.
@@jessicamoorhouse Thanks for the reply! You should also make a video about the Canadian Investor Protection Fund (CIPF) coverage. There is no UA-cam video that talks about it.
Thanks jessica , i buy real physical bullion gold , i think its better than cash and doubled my money since 2020 . Whats do you think about physical gold ?
If banks fail then so do all the clients who deal with any specific bank. What needs to be discussed is the clients financial obligations to banks such as mortgage payments, credit card payments, insurance payments regardless of what type of insurance and utility bill payments. In other words, in the event of a bank failure, are we still responsible for these payments and if so, how? If I fail to make a car payment for example, which is not my fault, can the bank or dealership repossess my car? What are one's legal rights?
Dont put it in the bank. Bury it in your backyard instead. The problem is cdic can't possibly cover everyone if all the banks go down. They'd be stretched if even one of the big banks went down.
Great information. Only bank runs could be a 'first' in Canada. I would learn from the Venezuela and Germany collapse. Precious metals and tradeable assets were more valuable. Canadians, we have plastic money backed by nothing. I would rather have silver cutlery than stainless steel. At least i can eat and if needed trade silver for other items. Also start a garden and stock up on non- perishable foods. Its gonna get freaky in 2025.
Cattail roots have the same nutritional value as a potato and dandelion is all over. If you dry out the roots and roasted them they taste just like coffee.
The guaranteed deposit insurance amount of $100,000 was enacted in 2005, a month short of 20 years ago. And not only that, but Canadian banks are fighting against and refusing, to increase it to something more realistic. WHY ?????
Simple solution. Buy physical gold and silver. Protection against inflation and no counterparts risks. For me it feels great having that kind of protection.
Precious metals aren’t very liquid though, plus they do have their own risks and there are some downsides such as price volatility, cost of storage and security (if physical gold), and it doesn’t generate any income like interest or dividends. This is all to say that although gold isn’t necessarily a bad investment for things like hedging inflation, you still need cash for most things and that cash is safe at the bank because of CDIC’s coverage.
I only keep about 10% in physical gold and silver. And it's not an investment, it's an insurance policy. My investments are in income producing assets, such as income property and dividends from companies. I do own banks, but I do not hold my money in them for a long period of time. I get paid and invest out of cash into income producing assets. Dollar cost averaging. I'm Canadian, and other than a TFSA, I dislike all registered investments. Keep your money away from the government. They want us as slaves. Good luck.
This is misinformation and extremely bad advice. You should be holding tangible assets under your mattress, but they should be in the form of vintage porcelain dolls or beanie babies.
So that's a different scenario. Investments like ETFs have different coverage in the case that your investment firm goes bankrupt. CIPF would be the institution that provides coverage: www.cipf.ca/cipf-coverage/about-cipf-coverage
Real estate in Canada is a Ponzi scheme mortgaged by banks, but the federal government always buys those mortgages as a form of bailout, so Canadian banks are unlikely to fail.
Thanks for the information. Can we have more than one joint checking account at the same institution with a maximum balance of 100k to ensure all funds are protected?
Great question! And another reason why I suggest playing with the CDIC coverage calculator because you can test out a number of scenarios. So you can have multiple joint chequing accounts at the same institution, however their combined coverage under CDIC is still $100,000. So let's say you bank with ABC Bank, and have joint chequing account #1 with $40,000 in it, and joint chequing account #2 with $60,000 in it. Because combined they have a balance of $100,000, both accounts are fully covered.
Thank You. Ill definitely check out the CDIC Calculator. Won't it make sense to keep cash at a Credit Union where deposits are 100% guaranteed and there is no limit?
@@Sharkkkyyy Great question about credit unions. Depending on what province they are in, they also are part of their own deposit insurance corporation. More info here: www.cdic.ca/about/partners/provincial-deposit-insurers/
Let's say you have $300,000 worth of GICs in your RRSP at ABC Bank. If that's the case, only $100,000 would be covered. So instead, you'd want to open an RRSP at DEF Bank and have $100,000 of GICs there and then another RRSP at GHI Bank to house the remaining $100,000 in GICs. This way, your entire $300,000 would be covered. To try out different scenarios to maximize your coverage check out the CDIC coverage calculator: www.cdic.ca/depositors/videos-and-resources/deposit-insurance-calculator/
There are also segregated funds, and although most of us would rather not pay fees, paying some fees to sleep at night is a decent compromise. Like any other investment vehicle, some are good and others bad.. From my experience many people hate these funds, then along came 2007 mortgage crash, and 2020 .. . Then the 100% principal guarantees sounded like a godsend.
Canadian banks are considered some of the safest banks in the world. While no bank is immune from failure, if Canadian banks start to fail then there are very serious economic issues and I am not sure that any place or maneuver is going to keep your wealth safe.
Perfectly fine! Everything is correct! But if a major bank will fail, in the current situation the others will follow, and no CDIC will have nearly enough money to deal with it. It was not designed for that. Besides, this will most probably accompanied by hyperinflation. So, after you'll get your $100K you'll be able to buy a slice of pizza for it. Ok, I'll give you the benefit of the doubt - maybe, you'll be able to buy the whole pizza for your $100K. How to avoid that is the question you should be thinking and talking about.
Well, from the experience of Russia that had almost all banks crushed several times after Soviet Union desolation. 1. Don't keep all eggs in one basket. Have your money at least in two banks. If one bank crashed, you probably will have at least several hours to cash from another. 2. At that time US dollar was in good shape. But since US economy also is not in a good condition, your only stable reserve is metal gold. And I mean not paper gold certificate from some institution, but real metal gold that you hold in your hands. Still, having some US cash may save you the day. 3. Just remember, that the only gold is yours, that you can protect. Paper (dry wall) door and camera in your house is not enough. 4. Don't rely on bank cards. In case of crisis no ATM will work probably for weeks. Have some cash in your hands at least for your monthly regular consumption. I don't mean that you should bring it everywhere. But at least have it in some safe spot where you can get it any time without any limit. Good luck! I survived it several times. Some of you (not just everyone) probably survive it too.
Riddle Me This : What Strategy is part of the Triangle, So when the Pyramid does Crumble and is Pointed out in a grade 4 level document which you point out, that limits 100, 000 as Well as the US is 300,000 as Well as EUr. 2nd: What Invention makes Currency Useless. End of Line.
With necessities in Canada going up at 15% a year, you're a fool to keep money on the bank. When the banking collapse happens, there's a bail-in provision passes by Harper. You get to keep $10,000 and the banks keep the rest. That $10K will be massively devalued as well, probably cover a week of living expenses. BTC, gold, silver etc. You're either ignorant or intentionally misleading your audience!
You can’t have an RRSP and a RRIF both at the same time, most people can’t have $100,000 disability savings count, and you’re limited to how much you can put in an resp, so no $100,000 there, and very few people have a FHSA (there again, there’s a limit as to how much you can deposit) so your calculations are way off as to how much a person can protect under CDIC!
In some circumstances, you actually can have an RRSP and RRIF at the same time www.moneysense.ca/save/retirement/rrif/rrsps-rrifs-same-time/ And for more information on account limits under CDIC protection, I encourage you to visit www.cdic.ca/
Read the "Bail In" Government Legislation. They can now use our own money to bail out the banks. Not to mention, Canadian Federal Gov. loves seizing bank accounts. Freedom Convoy anyone?
Bull shit the Principal group in Alberta went broke in 1987 and it took over 20 years for depoister to get there principal back. You don't know the fact's
Bank failures still happen, though the last one in Canada was in 1996. But bank failures in the U.S., for example, still occur and as recently as this past October www.americanbanker.com/list/15-most-recent-bank-failures
If you can’t hold it you don’t own it also you forgot to discuss third party risk as well and you did not clarify the investments they hold. Are THEY free of third party risk including gold in safety deposit boxes. I’ve got a lot more unanswered questions like how come no fiat currency has ever survived since the barter system ended. The only thing left is precious metals that am aware of. Gold has been monetized although silver is not it’s considered poor man’s gold and has been used as money for years is percentage of silver in coins. This commentary has a lot of holes in it in my opinion based on thousands of years of history and current physical and monitory policies with very little recorded recorded history relatively speaking.
Lots of great questions everyone, and thank you! I wanted to pin this FAQ to answer some of them from the CDIC website which should help answer them: www.cdic.ca/what-happens-in-a-failure/
Why didn't you mention the bail in legislation that is now in place? Getting your cash back like Cyprus years later after you lose the opportunity costs and receiving worthless stock is what have people scared. Have you covered the amount of money that is in the CDIC that would cover the depositor's money? I believe it is not very much. By all means clarification would be helpful.
The freezing of people's bank accounts who supported the trucking convoy is what caused people to lose faith in the banks.
I think the LACK of an answer indicates that you hit the nail on the head.
I also believe america is a sinking ship that will take Europe and us DOWN with them.
Not only can we NOT TRUST banks, we now KNOW that we can not trust our government ! This is the most worrisome thing !
Very well said. You are accurate.
You shoukd take a look into The Great Taking, it's a free download.
There are many videis on the book as well.
So if I put $100,000 into a 1 year GIC with 4% rate, then in case the bank goes bankrupt, I will receive only $100,000 and the $4000 interest is not covered by the CDIC.
Correct, the $100,000 threshold covers principal and interest, so anything above that amount isn’t covered. So in your example a solution would be to get two $50,000 GICs and put them in different categories at the same bank, or have them at different banks.
@@jessicamoorhouse Thanks for the reply! You should also make a video about the Canadian Investor Protection Fund (CIPF) coverage. There is no UA-cam video that talks about it.
@@NoScratchLifestyle You're right, a great idea! Thanks!
Thanks jessica , i buy real physical bullion gold , i think its better than cash and doubled my money since 2020 . Whats do you think about physical gold ?
If banks fail then so do all the clients who deal with any specific bank. What needs to be discussed is the clients financial obligations to banks such as mortgage payments, credit card payments, insurance payments regardless of what type of insurance and utility bill payments. In other words, in the event of a bank failure, are we still responsible for these payments and if so, how?
If I fail to make a car payment for example, which is not my fault, can the bank or dealership repossess my car? What are one's legal rights?
Dont put it in the bank. Bury it in your backyard instead. The problem is cdic can't possibly cover everyone if all the banks go down. They'd be stretched if even one of the big banks went down.
This is why I subscribed because of info like this. Most people don't know about information like this. Thanks Jess
Thank you!
Great information. Only bank runs could be a 'first' in Canada. I would learn from the Venezuela and Germany collapse. Precious metals and tradeable assets were more valuable. Canadians, we have plastic money backed by nothing. I would rather have silver cutlery than stainless steel. At least i can eat and if needed trade silver for other items. Also start a garden and stock up on non- perishable foods. Its gonna get freaky in 2025.
Starting a garden is always a good idea in my books :)
Cattail roots have the same nutritional value as a potato and dandelion is all over. If you dry out the roots and roasted them they taste just like coffee.
The guaranteed deposit insurance amount of $100,000 was enacted in 2005, a month short of 20 years ago. And not only that, but Canadian banks are fighting against and refusing, to increase it to something more realistic. WHY ?????
So what about stocks… how can they be protected?
CIPF. I’ll make a future video on it.
Question . If someone's have Cibc usa account and Cibc Canadian account . Is this considered one bank ?
They aren't exactly the same thing. CIBC Bank USA is an indirectly wholly owned subsidiary of CIBC.
Simple solution. Buy physical gold and silver. Protection against inflation and no counterparts risks. For me it feels great having that kind of protection.
Where would you hide that gold? That's the other part that is risky.
Precious metals aren’t very liquid though, plus they do have their own risks and there are some downsides such as price volatility, cost of storage and security (if physical gold), and it doesn’t generate any income like interest or dividends. This is all to say that although gold isn’t necessarily a bad investment for things like hedging inflation, you still need cash for most things and that cash is safe at the bank because of CDIC’s coverage.
I only keep about 10% in physical gold and silver. And it's not an investment, it's an insurance policy. My investments are in income producing assets, such as income property and dividends from companies. I do own banks, but I do not hold my money in them for a long period of time. I get paid and invest out of cash into income producing assets. Dollar cost averaging. I'm Canadian, and other than a TFSA, I dislike all registered investments. Keep your money away from the government. They want us as slaves. Good luck.
Keep gold under your mattress
Sounds like an uncomfortable sleep! Haha
@jessicamoorhouse 🤣 dont mind me.
You need one of them temper pedic
Temperpedic mattress extra cushions! Make it work 💪
Your probably right
@@The_real_Toddington 😆
This is misinformation and extremely bad advice. You should be holding tangible assets under your mattress, but they should be in the form of vintage porcelain dolls or beanie babies.
Is it still safe to invest in an ETF such as BMO ZST? Or is it better to sell them and buy a GIC?
So that's a different scenario. Investments like ETFs have different coverage in the case that your investment firm goes bankrupt. CIPF would be the institution that provides coverage: www.cipf.ca/cipf-coverage/about-cipf-coverage
Real estate in Canada is a Ponzi scheme mortgaged by banks, but the federal government always buys those mortgages as a form of bailout, so Canadian banks are unlikely to fail.
Agreed, just that the actual ones that pay the bill are you and me, the tax payers 😢
And the capital gains proposed is criminal!!
Are stocks in a Registered Income Fund RIF covered? Good info. Thank you.
I have mutual funds in an RRSP. Is this product covered?
CDIC doesn't cover mutual funds, but CIPF does www.cipf.ca/cipf-coverage/about-cipf-coverage
Thanks for the information. Can we have more than one joint checking account at the same institution with a maximum balance of 100k to ensure all funds are protected?
Great question! And another reason why I suggest playing with the CDIC coverage calculator because you can test out a number of scenarios. So you can have multiple joint chequing accounts at the same institution, however their combined coverage under CDIC is still $100,000. So let's say you bank with ABC Bank, and have joint chequing account #1 with $40,000 in it, and joint chequing account #2 with $60,000 in it. Because combined they have a balance of $100,000, both accounts are fully covered.
Thank You. Ill definitely check out the CDIC Calculator. Won't it make sense to keep cash at a Credit Union where deposits are 100% guaranteed and there is no limit?
@@Sharkkkyyy Great question about credit unions. Depending on what province they are in, they also are part of their own deposit insurance corporation. More info here: www.cdic.ca/about/partners/provincial-deposit-insurers/
How does the CDIC affect bail ins? Or it doesn't all?
what about the Canadian Investor Protection Fund, which also help protect your money in your investing accounts
Correct, you can find more info about that here (and maybe I'll make a future video on it as well) www.cipf.ca/
I’m a senior and all my savings are invested in bank in many low risk managed mutual funds.
So this means if the bank fails, all my money is lost? 😲😲
Investments like mutual funds are covered under CIPF www.cipf.ca/cipf-coverage/about-cipf-coverage
RRSP I have 300,000 so mean like understanding is cover only 100,000 ?
Let's say you have $300,000 worth of GICs in your RRSP at ABC Bank. If that's the case, only $100,000 would be covered. So instead, you'd want to open an RRSP at DEF Bank and have $100,000 of GICs there and then another RRSP at GHI Bank to house the remaining $100,000 in GICs. This way, your entire $300,000 would be covered. To try out different scenarios to maximize your coverage check out the CDIC coverage calculator: www.cdic.ca/depositors/videos-and-resources/deposit-insurance-calculator/
There are also segregated funds, and although most of us would rather not pay fees, paying some fees to sleep at night is a decent compromise. Like any other investment vehicle, some are good and others bad.. From my experience many people hate these funds, then along came 2007 mortgage crash, and 2020 .. . Then the 100% principal guarantees sounded like a godsend.
You should discuss bail -ins. Ty
Wrong! Our banks have failures almost every month! Just look at the recent lawsuit against TD Bank!
Did TD fail?
@kevinwaalker - No but recently in the U.S. it was sued for 3 billion in fraud!
Canadian banks are considered some of the safest banks in the world. While no bank is immune from failure, if Canadian banks start to fail then there are very serious economic issues and I am not sure that any place or maneuver is going to keep your wealth safe.
The likelihood of a bank failure in Canada is so low. We have actual regulations on our financial institutions.
Canada not having a bank failure since 1996 definitely says something about our bank regulations, that's for sure. Thanks for the comment!
Thank you, very good video.
Thanks!
Anyone who has more than $100K is not likely to keep it in a bank. Now, that would be costly.
Perfectly fine! Everything is correct! But if a major bank will fail, in the current situation the others will follow, and no CDIC will have nearly enough money to deal with it. It was not designed for that. Besides, this will most probably accompanied by hyperinflation. So, after you'll get your $100K you'll be able to buy a slice of pizza for it. Ok, I'll give you the benefit of the doubt - maybe, you'll be able to buy the whole pizza for your $100K. How to avoid that is the question you should be thinking and talking about.
Bail ins are impossible…. They will just print money
Didn't bail people out in Cyprus.
@ because of the euro
Well, from the experience of Russia that had almost all banks crushed several times after Soviet Union desolation.
1. Don't keep all eggs in one basket. Have your money at least in two banks. If one bank crashed, you probably will have at least several hours to cash from another.
2. At that time US dollar was in good shape. But since US economy also is not in a good condition, your only stable reserve is metal gold. And I mean not paper gold certificate from some institution, but real metal gold that you hold in your hands. Still, having some US cash may save you the day.
3. Just remember, that the only gold is yours, that you can protect. Paper (dry wall) door and camera in your house is not enough.
4. Don't rely on bank cards. In case of crisis no ATM will work probably for weeks. Have some cash in your hands at least for your monthly regular consumption.
I don't mean that you should bring it everywhere. But at least have it in some safe spot where you can get it any time without any limit.
Good luck! I survived it several times. Some of you (not just everyone) probably survive it too.
big 5 banks are quite secure i would imagine
Really the financial advise would be in my mind is don't keep money in a bank, the inflation will take any benefits.
I don't believe you i think you naive
There is no worry of bank failure in Canada. The banks hold all the cards. Your article is ka ka
Riddle Me This : What Strategy is part of the Triangle, So when the Pyramid does Crumble and is Pointed out in a grade 4 level document which you point out, that limits 100, 000 as Well as the US is 300,000 as Well as EUr.
2nd: What Invention makes Currency Useless.
End of Line.
With necessities in Canada going up at 15% a year, you're a fool to keep money on the bank. When the banking collapse happens, there's a bail-in provision passes by Harper. You get to keep $10,000 and the banks keep the rest. That $10K will be massively devalued as well, probably cover a week of living expenses. BTC, gold, silver etc. You're either ignorant or intentionally misleading your audience!
And what about if the economy crashes completely and the dollar becomes worthless compared to the US currency....
Please comment on the Credit Unions: they claim to protect $250000 of each investment
Credit unions are protected under their province’s insurance corporation and different rules may apply.
To protect your money, the best option is to invest in real estate
You can’t have an RRSP and a RRIF both at the same time, most people can’t have $100,000 disability savings count, and you’re limited to how much you can put in an resp, so no $100,000 there, and very few people have a FHSA (there again, there’s a limit as to how much you can deposit) so your calculations are way off as to how much a person can protect under CDIC!
In some circumstances, you actually can have an RRSP and RRIF at the same time www.moneysense.ca/save/retirement/rrif/rrsps-rrifs-same-time/ And for more information on account limits under CDIC protection, I encourage you to visit www.cdic.ca/
Read the "Bail In" Government Legislation. They can now use our own money to bail out the banks. Not to mention, Canadian Federal Gov. loves seizing bank accounts. Freedom Convoy anyone?
Bull shit the Principal group in Alberta went broke in 1987 and it took over 20 years for depoister to get there principal back. You don't know the fact's
What happens when CDIC goes bankrupt
What bank failures? This aint the 1800s
Bank failures still happen, though the last one in Canada was in 1996. But bank failures in the U.S., for example, still occur and as recently as this past October www.americanbanker.com/list/15-most-recent-bank-failures
GOLD & SILVER CASH ON HAND FOOD WATER ALL TANGIBLES PREPARE SHTF SOON
If you can’t hold it you don’t own it also you forgot to discuss third party risk as well and you did not clarify the investments they hold. Are THEY free of third party risk including gold in safety deposit boxes. I’ve got a lot more unanswered questions like how come no fiat currency has ever survived since the barter system ended. The only thing left is precious metals that am aware of. Gold has been monetized although silver is not it’s considered poor man’s gold and has been used as money for years is percentage of silver in coins. This commentary has a lot of holes in it in my opinion based on thousands of years of history and current physical and monitory policies with very little recorded recorded history relatively speaking.
Worst banks in the world are Canadian banks ever
Anyone try walking into your bank and asking for $2000., $5,000, + withdrawal? Good luck. They won’t give it to you.
Every account is insured lol they're protected.
Bitcoin.
And these are your Advices for protection of Assets ? Go juggle apple and don't waste people's time with these mediocre Advices.
I want to make you feel better Europe is doing good not China okay I hope that would light your day better. I feel sorry for you.