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Ottawa Wants to Raise Your Deposit Insurance to $250,000: What Changes (and What Doesn’t)

  For more than 20 years, the federal guarantee on your savings has been stuck at $100,000. In Thursday's budget, Ottawa proposed to raise it to $250,000. Here is what would change, what wouldn't, and why you shouldn't move a dollar yet. Today (unchanged since 2005) $100,000 per deposit category Proposed in Budget 2026 $250,000 per deposit category What Budget 2026 actually proposes The Canada Deposit Insurance Corporation (CDIC) protects your deposits if a member bank fails. The budget proposes amendments to the CDIC Act that would do four things: Raise the limit from $100,000 to $250,000 per deposit category, the first increase in more than two decades. Remove the limit entirely for eligible deposits held in registered and tax-free accounts. Today, the limit is $100,000 per account type at each institution. Add temporary high-balance coverage for life events such as selling a home. Require a review of the deposit insurance framework every 10 years. It isn't law yet. ...
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Bank of Canada Cuts Rate by Quarter Point Amid Tariff Uncertainty

The Bank of Canada announced a quarter-point reduction in its key interest rate on Wednesday, bringing it down to 3%. This marks the sixth consecutive rate cut since June 2024. The central bank cited stabilized inflation and a strengthening economy as reasons for the cut. However, it also highlighted the looming threat of U.S. tariffs as a significant source of uncertainty.

Governor Tiff Macklem emphasized that while the economy is showing signs of improvement, the potential for broad-based tariffs could pose a major challenge. The Bank of Canada revised its GDP growth forecast downward to 1.8% for 2025 and 2026, factoring in lower population growth and increased policy uncertainty.

The central bank presented several scenarios in which tariffs could impact the economy, projecting a potential reduction in GDP by 2.4% in the first year if tariffs are imposed. Macklem stated that the bank would closely monitor developments and assess the implications for economic activity and monetary policy.

The decision to cut rates comes as the U.S. threatens to impose 25% tariffs on Canadian goods. The Bank of Canada warned that such tariffs could lead to a recession in Canada, but it also indicated that it might refrain from further monetary policy support to avoid reigniting inflation.

The central bank's cautious approach reflects the delicate balance it must maintain in the face of economic uncertainties and the potential for a trade war with the U.S.




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