Deposits Guaranteed

The Credit Union Deposit Guarantee Corporation guarantees the repayment of all deposits with Alberta credit unions, including accrued interest.  Additionally, the Credit Union Act provides that the Government of Alberta will ensure that this obligation of the corporation is carried out.

This guarantee covers foreign currency deposits and deposits with terms exceeding 5 years.  It is not affected by a credit union changing it's name, amalgamating, or entering into similar type of arrangements.

Non-Deposits Not Guaranteed

• The guarantee covers deposits only.
• The guarantee does not cover non-deposit investments, examples of which include mutual funds, common shares and investment shares.

Three Levels of Protection

The Credit Union Deposit Guarantee Corporation, a Provincial Corporation, and credit unions, operate under the authority of the Credit Union Act.   This legislation provides a three-level system of deposit protection:

Level One

Each credit union is required to build and maintain capital to a level outlined in the Credit Union Act and Regulations.  A credit union's capital is built up from:

• retained earnings and reserves from each years net income, and
• common shares and investment shares (if any) owned by it's members.

Level Two

The Credit Union Deposit Guarantee Corporation provides a guarantee of all deposits with Alberta credit unions.   This protection includes interest owed to the date of payout.

Level Three

The Government of Alberta ensures that the Credit Union Deposit Guarantee Corporation's obligation to depositors will be carried out.

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