Just noticed Capital One isn't covered by CDIC

Feb 16th, 2018 1:25 am

#1

MayorOfToronto [OP]: Deal Addict; Jul 13, 2014; 4343 posts; 1839 upvotes; Parry Sound

Feb 16th, 2018 1:25 am

Just noticed Capital One isn't covered by CDIC

How much of an issue is this and should I cancel my card?

What does this even mean in terms of credit cards? What kind of deposit would a credit card have besides payment?

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Feb 16th, 2018 1:56 am

#2

Kiraly: Deal Guru; Jan 9, 2011; 11134 posts; 13662 upvotes; Vancouver

Feb 16th, 2018 1:56 am

What are you afraid of losing? CDIC insures your deposits. A credit card isn't that.

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+1

Feb 16th, 2018 1:59 am

#3

MayorOfToronto [OP]: Deal Addict; Jul 13, 2014; 4343 posts; 1839 upvotes; Parry Sound

Feb 16th, 2018 1:59 am

Kiraly wrote: ↑ What are you afraid of losing? CDIC insures your deposits. A credit card isn't that.

That's why I'm confused. Pretty much every other CC is covered. Even Amex is covered.

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Feb 16th, 2018 7:20 am

#4

kavatski: Member; Mar 24, 2008; 233 posts; 78 upvotes; Halifax

Feb 16th, 2018 7:20 am

It's nothing to do with credit cards. By definition, CDIC members offer deposit accounts. Until about a year ago, Amex Bank of Canada offered deposit accounts. Capital One doesn't in Canada and never has, so no CDIC.

Feb 16th, 2018 8:11 am

#5

coolintheshade: Deal Fanatic; Aug 24, 2016; 8315 posts; 8924 upvotes; The Prairies

Feb 16th, 2018 8:11 am

It probably refers to deposits given for their secured credit cards

+2

Feb 16th, 2018 11:35 am

#6

MayorOfToronto [OP]: Deal Addict; Jul 13, 2014; 4343 posts; 1839 upvotes; Parry Sound

Feb 16th, 2018 11:35 am

coolintheshade wrote: ↑ It probably refers to deposits given for their secured credit cards

That makes the most sense

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Feb 16th, 2018 7:57 pm

#7

kavatski: Member; Mar 24, 2008; 233 posts; 78 upvotes; Halifax

Feb 16th, 2018 7:57 pm

Nope. Again, Amex used to offer actual savings accounts.

https://www.americanexpress.com/ca/en/c ... ister.html

Feb 16th, 2018 8:22 pm

#8

Kiraly: Deal Guru; Jan 9, 2011; 11134 posts; 13662 upvotes; Vancouver

Feb 16th, 2018 8:22 pm

MayorOfToronto wrote: ↑ That's why I'm confused. Pretty much every other CC is covered. Even Amex is covered.

What do you mean "every other CC is covered"? Covered for what? CDIC insures deposits. Credit cards aren't deposits. Unless you are talking about a secured credit card, they aren't holding any of your money. There's nothing to insure.

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Feb 16th, 2018 8:55 pm

#9

McMaggot: Deal Addict; Aug 4, 2003; 2827 posts; 1359 upvotes

Feb 16th, 2018 8:55 pm

This also might explain why Capital One is quick to issue cheques for credit balance on your account. If I ever forget credit balance, they never let it get to third statement after the fact.

Although, I see it's not something that is explicitly covered by CDIC anyway. But, I do not see an exclusion either.

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+1

Feb 17th, 2018 11:17 am

#10

MayorOfToronto [OP]: Deal Addict; Jul 13, 2014; 4343 posts; 1839 upvotes; Parry Sound

Feb 17th, 2018 11:17 am

kavatski wrote: ↑ Nope. Again, Amex used to offer actual savings accounts.

https://www.americanexpress.com/ca/en/c ... ister.html

Kiraly wrote: ↑ What do you mean "every other CC is covered"? Covered for what? CDIC insures deposits. Credit cards aren't deposits. Unless you are talking about a secured credit card, they aren't holding any of your money. There's nothing to insure.

If you have a Capital One card sign in to your account and look at the very bottom of the page

NOTICE
Deposits with
Capital One Bank (Canada Branch)
are not insured by the
Canada Deposit Insurance Corporation

Clearly they have a reason to mention that. I'm assuming it has to do with deposits for secured accounts. That makes the most sense.

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Feb 17th, 2018 2:04 pm

#11

MoneyHypeMike: Deal Addict; Jul 22, 2015; 4913 posts; 2449 upvotes; Saint-Hubert, QC

Feb 17th, 2018 2:04 pm

Call them if the previous answers doesn't satisfy you.

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Feb 18th, 2018 12:17 am

#12

JoeBlack23: Sr. Member; Nov 6, 2015; 959 posts; 560 upvotes; Guelph, ON

Feb 18th, 2018 12:17 am

If you just use their credit card, why do you care how they are covered under CDIC? Either you owe them money or owe nothing, they never owe you, so what could you "lose" by them not being covered by CDIC?