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Email this3:28 am
April 14, 2021
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A fellow, living in the US, asked me if there is any additional CDIC coverage for named beneficiaries.
He said that, under US FDIC, he gets $250K coverage, but that can be doubled if he has a named beneficiary (or tripled, if he names 2 beneficiaries.)
Anyone know if there is any truth to this claim?
Any Canadian counter-part?
7:46 am
April 6, 2013
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That's only true in the US for trust accounts.
The FDIC fact sheet says the following, effective April 1, 2024:
A deposit owner's trust deposits will be insured in an amount up to $250,000 for each of the trust beneficiaries, not to exceed five, regard less of whether a trust is revocable or irrevocable, and regardless of contingencies or the allocation of funds among the beneficiaries.
Canadian CDIC coverage on trust accounts does multiply with beneficiaries, with no limit on the number of beneficiaries.
7:47 am
March 14, 2023
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(edit) Norman1 beat me to the answer by 1 minute.
It appears the beneficiary coverage under FDIC rules is for trust accounts only.
One of the CDIC categories is trust accounts, which are insured up the maximum for each beneficiary.
I have no experience with trust accounts, so I don't know what other rules surround them.
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