Ontario deposit insurance on Pace CU registered GICs | GIC discussions | Discussion forum

From PACE website

Deposit Insurance
In 2018, the Government of Ontario announced that regulation of provincial financial services to be performed by the Financial Services Regulatory Authority of Ontario (FSRA). This independent regulatory agency was established to improve consumer and pension plan beneficiary protections in Ontario while reducing regulatory burden and improving regulatory effectiveness.

On June 8, 2019 The Deposit Insurance Corporation of Ontario (DICO) merged into the Financial Services Regulatory Authority of Ontario (FSRA). All Credit Unions in Ontario are now regulated by FSRA. All eligible deposits held by Ontario Credit Union Members are protected up to $250,000 per Member. All deposits held in registered savings plans are separately insured providing for unlimited coverage.

Bill said
Credit unions have superior coverage for registered accounts. I`m kind of surprised CDIC is still capped at $100K for registered accounts, doesn`t take too long to get up there. Maybe the thinking is that there are relatively few people affected, I`m guessing the vast majority with larger RRSP balances invest mainly in uninsured products, more apt to be diversified into mutuals, stocks, etc.
https://www.cdic.ca/your-coverage/deposit-protection-for-all-life-stages/cdic-articles/cdic-reminds-canadians-to-check-their-rrsp-balance/  

I've seen seniors split their savings into several different institutions so each one is covered by CDIC up to $100,000. So, the low CDIC coverage is creating a hassle for seniors who are forced run around town to several different institutions to have their hard earned savings covered by CDIC. Rarely do governments make life easier for you.

Bill said
I was thinking more of RRIFs, it's got to be a pain to manage withdrawals from a slew of RRIF accounts every year. But, again, probably not that many people do it that way.  

Maybe their RRIFs are primarily mutual funds or ETFs (of bond or equity or balanced variety), or retirees keep most of their GIC money in taxable accounts, or they hold GICs from a series of issues in a brokerage RRIF account. For example, I currently have 5 different issuers of GICs in my brokerage RRIF account along with individual bonds.

There are many ways to construct a portfolio and hold a variety of securities including GICs.