Are High Interest Savings Accounts Safe?

 Deposit returns are low, and everyone wants to get a higher rate on their hard-earned money. It is logical to look for a high interest savings account to get the best deal, but how will you know if your money is safe in the account that you selected? This post will answer this question. 

Select a high interest savings account Canada and you can sleep at night peacefully because of the deposit protection insurance offered by the Canadian Deposit Insurance Corporation (CDIC), an independent crown corporation established by the Canadian federal government.

The CDIC offers security for all Canadian banks that are registered with the financial services authority. This includes regular savings account for high interest savings, current accounts, and money held in your TFSA or RRSP. As a matter of fact, it covers all high-interest savings bank accounts in Canada. 

You can check if your bank is covered by the CDIC by giving them a call or by checking out their website. Every institution comes with an individual registration so jot it down before getting in touch with the CDIC, as this will save you time. You might be thinking, “How much coverage do I get?”Although it is extremely rare in Canada, in the unlikely event of a bank becoming insolvent, the CDIC would reimburse you up to $100,000 for each type of account held in any given institution. 

The protection that this insurance offers is fully guaranteed by the government. Fundamentally, it is the Canadian government providing you with a safety net. You don’t have to be concerned about whether or not there will be enough funds available for you to get a payout as the government assurance is the best assurance that you can get. 

But what do you do if you have more money? Simple! Diversify it across various banks. You would get the coverage for each and every financial institution, and your money would be quite safe indeed.