Q&A: Are GICs guaranteed?

Gordon Pape answers: I answered a similar question recently but they keep coming in, probably because of the high interest rates being offered on GICs by Manitoba-based credit unions like Achieva. None of these are covered by the CDIC (Canada Deposit Insurance Corporation). Rather, their deposits and GICs are protected by the Credit Union Deposit Guarantee Corporation of Manitoba. It is not a government-sponsored organization, nor does the Manitoba government guarantee any losses. If some kind of financial disaster hit the Manitoba credit unions (highly unlikely, of course), then conceivably there might not be enough money in the fund to cover all losses. I do not see this as a high risk, but after what happened to the world financial system last year it's something you should be aware of.

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