Credit Union Deposit Guarantee Corporation - Deposits Guaranteed Since 1953
FAQ
FAQ
Who are the winners of the Corporation’s “Your Deposits Are Secure” contest?
We are pleased to announce the five winners of $1,000 each:
Gloria Salisbury
Brad Hebert
Faye Kruesel
Pauline Erdman
Evianne Wanner
Congratulations to our winners, and thank you to all contest entrants for visiting our website! We hope that during your visit, you learned a bit more about the Corporation, our role in the Saskatchewan credit union system and the deposit guarantee.
When you say "All deposits are fully guaranteed" do you mean "All"?
Yes we do. Deposits held in Saskatchewan credit unions are fully guaranteed. There is no limit to the size of the deposit covered by the guarantee – whether $1 or $1,000,000 or more, all deposits are guaranteed.
Is interest on deposits included as part of the guarantee?
Yes, accrued interest on deposits is included.
Are my deposits in a Saskatchewan credit union fully guaranteed even if I live outside the province?
Yes, the guarantee covers all deposits in Saskatchewan credit unions regardless of membership, citizenship or residence of the depositor.
Do I have to be a member of the credit union to qualify for the guarantee?
No you don’t. Credit unions provide services to the general public as well as their members. Deposit protection through the Credit Union Deposit Guarantee Corporation is provided to all depositors of the credit union.
Why are mutual funds and securities not covered by the guarantee?
Mutual funds and securities are investments purchased by an agent who invests in other companies on your behalf. The investments are not deposits in the credit union so are not covered by the guarantee.
Why aren’t shares and equity included in the guarantee?
Shares and equity are not deposits. The guarantee does not cover any form of equity or capital.
Who is the Corporation accountable to?
The Corporation is not a government organization, but is accountable to the Government of Saskatchewan through the Registrar of Credit Unions. The Registrar has ultimate responsibility for the registration and regulation of credit unions.
Does the Government of Saskatchewan back up the Corporation's guarantee of deposits?
While there is no explicit provincial government backstop on deposits held in Saskatchewan credit unions, the Corporation does have the ability to access financing from any government or regulatory body inside or outside of Canada. The Corporation and Saskatchewan credit unions have never had to rely on the government for financial assistance or bailouts.
The Corporation’s deposit protection model provides three levels of protection for deposits.
- sound credit union operations
- Standards of Sound Business Practice
- Regulatory policy and guidance
- Supervisory practices – monitoring and intervention
- Preventive programs
- capital reserves
- deposit guarantee fund
Without a government backstop, how does the Corporation guarantee the repayment of deposits?
Prevention is Deposit Guarantee Corporation’s key deposit protection strategy. The preventive approach includes high standards of sound business practice, comprehensive monitoring practices, intervention if required, preventive programs and regulatory policy and guidance. This approach ensures sound credit union operations.
This preventive approach coupled with strong levels of capital and a strong guarantee fund ensures even the largest deposits are fully guaranteed.
In the history of the Corporation, no depositor has ever lost a dollar on deposit in a Saskatchewan credit union. Nor has the Corporation ever had to rely on the provincial or federal government for financial assistance.
Who is responsible for monitoring the performance of Saskatchewan credit unions?
As the primary regulator, Credit Union Deposit Guarantee Corporation monitors and examines credit unions. Credit union boards of directors are responsible for directing affairs to ensure credit unions are operated in a sound and prudent manner and in the best interest of depositors. Credit unions are required to have their operations audited annually by independent auditors. Credit unions report on their business, including disclosure of audited financial statements, at annual meetings.
How is deposit protection funded?
Credit unions pay an annual assessment to the guarantee fund, which is managed by Credit Union Deposit Guarantee Corporation. The guarantee fund is a pool of money set aside to provide a guarantee of repayment of the full amount of funds on deposit in Saskatchewan credit unions.
The fund is maintained through the annual assessment paid by credit unions and interest earned on the fund. It is one of the strongest guarantee funds in North America.
The preventive initiatives of Credit Union Deposit Guarantee Corporation ensure that the fund is rarely drawn down.
How does the deposit guarantee differ from deposit insurance at banks and trust companies?
Chartered banks and some trust companies are regulated by the federal government. Deposit insurance coverage for federally regulated financial institutions is determined and provided by Canada Deposit Insurance Corporation (CDIC).
Is the same level of deposit protection provided to credit unions in other provinces?
Credit unions in Canada are regulated provincially, and each province has its own deposit protection program. The amount and type of deposit protection varies from province to province.
How are credit unions in this province regulated?
Credit unions are regulated under The Credit Union Act, 1998, The Credit Union Regulations, 1999 and The Credit Union Insurance Business Regulations. Credit unions must also comply with the Corporation's Standards of Sound Business Practice, and the bylaws and policies established by each credit union.
If your questions have not been addressed please contact us.