Frequent Questions

How are deposits protected?

Credit unions are required to meet statutory standards which protect them against potential financial losses. These standards are enforced by the Superintendent of Credit Unions. Each credit union is also required to have an annual audit performed by an external auditor.

The Credit Union Deposit Guarantee Corporation and Government of Newfoundland and Labrador provide continuous financial monitoring of all credit unions and initiate remedial action if necessary. The corporation maintains a deposit guarantee fund for the purpose of protecting member's deposits. This fund is financed by the Provincial Credit Union System through assessments levied by the corporation.

The Credit Union Deposit Guarantee Corporation is a crown corporation of the Government of Newfoundland and Labrador.

What is the level of protection provided by the corporation?

The corporation guarantees deposit $250,000 per type of account. The types of accounts that are covered by the guarantee are:

Type	Amount	Details
Demand Account	$250,000	Non equity shares, savings and chequing accounts, terrn deposits, guaranteed investment certificates, debentures, etc.
Registered Retirement Savings Plan	$250,000
Registered Retirement Income Fund	$250,000
Trust Account	$250,000	Where the member is acting as a trustee and the trusteeship is disclosed in the records of the credit union, the deposit will be insured separately from the member in his own right. The deposit will constitute a separate account for the beneficiaries of the trust.
Joint Account	$250,000	Joint accounts are insured separately to a maximum of $250,000 to be divided equally among the joint owners.

Are credit union deposits protected?

Yes. Deposits in credit unions registered in the Province of Newfoundland and Labrador are protected by the Guarantee up to the insured limits.

Are deposits protected if an individual is a member of more than one credit union?

Yes. The protection is provided on an individual credit union basis.

Are credit union branch deposits protected separately?

No. The deposit protection applies to the combined total of your deposits in any one credit union.

Are there any exceptions to deposit guarantee?

Yes. The required member's share of $100 or any other share specified by the Credit Union as not protected are not covered under the corporation's guarantee.

What happens if a member dies?

If a member dies, all deposits become part of a member's estate and are protected to the prescribed limits as long as the fund remain in a credit union protected by the corporation.

If you have any other questions or would like further clarification please do not hesitate to contact us.