How Deposit Insurance Works
I quizzed the banking and credit deposit insurance about what happens when a bank goes under. My thinking: with all of the "Canadian banks can't fail" talk, there is too much smugness afoot. It begs for a big bank or credit union in Canada to collapse. When my Mom tried to move her RRSP to another company, her credit union refused to acknowledge her request to move. I think they were holding onto the cash for dear life. People are living on debt and saving for their retirement, so when a bank falls apart it will likely be when their RRSP management falls apart. But, in Canada, collapses are uncommon. Not a lot of people have make use of the insurance system. Here's what I posed and what I found out: Can you help me understand the process of submitting a claim for an insurance deposit. Here is the hypothetical situation and I am unclear how it carries out: - say, I have $50,000 in a BC bank-- a member of the CDIC - the credit union becomes financially insolvent and c...