PAGE 4, MONEY SUPPLEMENT, 1990 DEPOSIT INSURANCE Safety net ready to protect your deposit dollars Given several financial fail- ures in recent years, it’s always ’. reassuring to know your deposits dre fully protected. Most deposits in financial in- stitutions are in fact protected. But not all. So it makes eminent good sense to check out the status of your hard- earned dollars in case -some- thing goes wrong where they live. The main protective agency is the Canada Deposit Insurance Corp. (CDIC), the federal government agency set up to insure certain deposits held by member institutions. They in- clude all banks and all trust and loan companies chartered federally. In addition, provin- cially incorporated trust and loan companies may apply to join CIDC or the Quebec Deposit Insurance Board and many, but not all, have done so. Not all types of deposits are covered. Specifically, only those available’ on demand or - within five years are protected and stocks, bonds, mortgages, mutual funds and foreign deposits are NOT covered. Each insured account is covered to a maximum of $60,000 but you can increase the coverage by spreading the funds among several accounts in other names — that of your spouse and/or a joint account. But if that’s not enough, you'll have to transfer some funds to another institution entirely, not another branch of the same institution, $60,000 limit includes insurance Remember too that the $60,000 limit includes interest, soifit puts the account over the top, the excess isn’t covered. You should also be aware that not all RRSPs and RRIFs are covered — only those at in- sured institutions, So an RRSP containing mutual funds isn't covered because mutual funds are insurable. Likewise, RRSPs bought through life in- surance companies aren't in- sured because these companies can’t be CDIC or QDIB mem- bers. When an insured institution . . takes your money for an unin- sured investment, it must stamp the paperwork with a notice to say so. But beware — this rule doesn’t apply to companies that are only affiliated with an insured firm. You can see the danger of con-. fusion and misunderstanding because such companies often have similar names and logos as their parents. Other types of institutions such as credit unions, caisses populaires and provincial co- operatives are regulated by the provinces and each province has deposit protection require- ments of its own in place, But you should certainly check these out before you commit funds. For more information on provincial deposit insurance and different stabilization funds, contact the government department concerned. Or con- tact the CDIC at Box 2340, Sta- tion D, 320 Queen St. W., Ot- tawa, Ont. KiP 5W5 1-800- 267-1999. [Must youfile -areturn anyway? . Are you required to file a return even if you don't have any tax to pay? Probably yes, says Revenue Canada, and there’s quite a list of cir- ‘cumstances you might have overlooked which mean you must file. You're required to file a return, for instance, if you received a child tax credit in 1989; disposed of capital property or had a taxable capital gain; if you must repay part of your family al- lowances or Old Age Security benefits; or if you must make Canada Pension Plan con- _tributions or UIC premiums.. tributions because you earned more than $2,700. . You'll also have to file a return to claim a child tax credit, refundable invest- ment tax credit, provincial tax credit, or refund of over- payment of tax, CPP con- Finally, Revenue Canada may be jumping the gun somewhat, but it says. you must file a return to claim federal sales tax credits and “to be eligible to receive the ‘roods and services tax credit’ payments for December 1990 and April 1991.” Now you pay 15% on unpaid taxes | Revenue Canada’s interest charge on outstanding income tax, penalties, insufficient in- stallment payments and un- paid employee tax deductions has risen to 15 per cent, from 13 per cent.. That rate will also be paid by Revenue Canada on tax refunds still in the works. But there’s no change in the 13 per cent rate to establish the tax- able benefit on interest-free and low-rate loans to em- ployees. The new rates were all scheduled to be reviewed again on Dec. 31, The rates are estab- lished by taking the average 90-day treasury bill rate during the first month of the previous quarter, rounding it up to the nearest percentage point and then adding two more points — all obviously to get you to pay faster. ft [PLAN FOR YOUR FUTURE NOW! To Build A Better RSP, You Need Lots of Options Bond fund Flexibility Equity fund Daily interest — Balanced fund _ Royal Bank Retirement Savings Plans Offer You: ; Money market fund — Instant tax receipts Combination of term deposit with guaranteed highly competitive interest rates Remember: Deadline for 1989 taxation year is MARCH Ist, 1990. Come in today and talk to our RSP Specialists THERESA, CARLOS, COLLEEN AND TONY 259 ROYAL BANK Serving Terrace, B.C. For telephone contributions, call 1-800-663-2193 ROYAL BANK © MUTUAL FUND SERVICES INC. =?