The Canadian Parliament protects citizens by insuring banks through the Canada Deposit Insurance Corporation (CDIC). Not all banks in Canada are members of the CDIC, so residents who want protection for their savings must use a bank that is insured by the CDIC.
Banks insured by the CDIC have protection should the bank fail. Members of insured banks will be eligible to receive up to $100,000 of their savings back, while members of uninsured banks that fail may lose everything.
One thing members aren't protected against with the CDIC is losing money through theft or a scam. Members of a bank with CDIC insurance will not be able to file a claim for deposit insurance if money is lost through a fraudulent scheme.