Is Your RESP Protected by Deposit Insurance?

Paula — Thu, 08 Jun 2017 11:52:58 +0000

The cost of post-secondary education in Canada continues to climb. Chances are good you already know this. In fact, I know many of you have been saving or putting money away into a Registered Education Savings Plan (RESP) for years. And, you are not alone. Many parents and grandparents are trying to save as much as they can in an RESP so that kids and grandkids can continue their education after high school without the burden of student loans. RESPs are a great savings tool. There are federal government grants that can help top up your funds and that can help you maximize your contributions. But have you ever given any thought to how safe those savings are? Don’t panic. There’s a Crown corporation called the Canada Deposit Insurance Corporation (CDIC), which protects eligible deposits in Canadian banks in the unlikely event of a bank failure. I know, you’re probably thinking, “banks don’t fail!” Well, in the 50-year history of the Canada Deposit Insurance Corporation, they have handled 43 failures of Canadian financial institutions and not one dollar under CDIC protection was lost. The last incident of failure was in 1996, so while it hasn’t happened recently, it can happen. The CDIC protects deposits in seven different categories at over 80 member financial institutions in Canada, up to $100,000 per category, per member. But how do RESPs fit in? Well, if your child’s RESP is set up as a trust (trusts being one of the seven protection categories), eligible deposits in the account are covered by CDIC! Eligible deposits in an RESP could include cash deposits or GICs with a term of 5 years or less. Trust accounts are protected up to $100,000 per beneficiary. This means that if you have three RESPs for three different children, you could have up to $300,000 of protected savings. One important thing to note about CDIC coverage is that not everything is covered. Many RESP accounts contain mutual funds, which are NOT protected by CDIC. Other products not covered include stocks, bonds, term deposits greater than 5 years, and foreign currency deposits. Find Out if Your RESP is Covered by Canada Deposit Insurance Corporation So now that you are armed with this information, what should you do? First, if you already have an RESP, check CDIC’s list of members to see if your bank is included, and then check with your bank to find out if the RESP is structured as a trust and has a beneficiary. Lastly, use CDIC’s online estimator to calculate your RESP coverage, and coverage of all your other accounts as well. Happy saving! This post has been sponsored by the CDIC and as such is compensated. My opinion is all my own and it is also truthful.

The post Is Your RESP Protected by Deposit Insurance? appeared first on Thrifty Mommas Tips.

Be Prepared for Summer Road Travel

Paula — Wed, 24 May 2017 14:59:26 +0000

Summer’s almost here and that means summer road travel season is underway. There’s a part of me that’s counting the days until we can load up the van and drive somewhere new. Road trips are a tradition when the kids get out of school and we all take a collective deep breath. Nothing nicer to me than the easier rhythm of summer days. This July one of my girls will be working as a camp counsellor so our family will work around that schedule. Summer road trips are an important part of our family tradition here. In the last couple of years we have taken some amazing trips together, starting with a GPS app, a plan, and a van full of supplies. The weather right now, although a bit chaotic, is sure to be hot and sunny within a matter of a couple of weeks. Days stretch longer and summer adventures seem full of potential. Last year our family trip to Gatineau and Chateau Le Fairmont Montebello was amazing. Parc Omega was worth the visit and the drive. We will remember that road trip forever. This season I have not yet got a firm plan but our travels might lead back to Quebec. For sure, our summer travels will also lead to the beach and a cottage somewhere. One of my close relatives is considering renting a houseboat. That could be fun too for a change. Regardless of what you are doing this summer and where it leads, there’s sure to be some summer road travel. That means you need to be prepared. Typically you will be packing enough things for a weekend or a week away. But you also need to remember to take certain things into account before you lock your front door and hit the road. Of course everyone hopes for a safe journey, but an ounce of prevention and a smart affordable insurance policy can go a very long way towards stacking the deck in favour of building happy memories. Nobody wants to return to a flooded basement or laundry room, or a break in. Don’t stress over the possibility that something catastrophic could happen. Instead plan ahead. One of the ways we do that is to check insurance policies before we leave home. A good insurance policy can provide confidence and peace of mind. 5 Things YOU NEED To Remember Before You Embark on Summer Road Travel: Make sure you notify the neighbours that you are leaving. Give them your phone number just in case anything happens while you are away. Rumour has it that the house we are living in now was once hit by lighting. What if that happened when you were miles from home? What would that even look like? Would there be damage? Fire? Who would know where you are and how to find you? Leave that information with a neighbour you trust. Check your property insurance a couple of times a year and be sure what you are covered for. Of course you turn most of your lights off, but do you remember to turn some of your water off too? Turn off the water connection to the washer in the laundry room. Check other rooms where water is involved. A lot of times you might not realize that flooding is one of those things that can happen and cause massive damage to your property. Take precautions. Turn washer water off right before you leave. Make sure your vehicle has been serviced recently. Gas up, check the oil and then get the tires checked too. Windshield washer fluid top up? Do it now. Consider adding an extra bottle of the fluid to the contents of your trunk and if the trip is especially long then you have some more if needed. Always be sure to carry your health cards and a credit card. And last, but not least, check your insurance before you go. Insurance is something every family, every driver, and every property owner or renter needs to have. Accidents, break ins and floods can be devastating financially and emotionally. Have you heard of InsuranceHotline.Com? InsuranceHotline.com is a free online insurance rate comparison service that allows people to compare 30+ insurance providers to help you get the lowest rates on car insurance, home insurance, motorcycle insurance and life insurance. Right now InsuranceHotline.com has a great giveaway going on Enter to win a family pack of tickets to Canada’s Wonderland. What a fun way to start your summer road travel! Enter below for a chance to win now. a Rafflecopter giveaway This post is sponsored by InsuranceHotline.Com and I have been compensated. My opinion is all my own and it is also truthful.

The post Be Prepared for Summer Road Travel appeared first on Thrifty Mommas Tips.

insurance Archives — Thrifty Mommas Tips

Is Your RESP Protected by Deposit Insurance?

Be Prepared for Summer Road Travel