Paul Sanchez
Banks in Singapore are insured under the Deposit Insurance Scheme, which covers deposits in SGD held in standard savings, current, or fixed deposit accounts. All full banks and finance companies in Singapore are required to be members of the scheme, except those exempted by MAS. The scheme is administered by the Singapore Deposit Insurance Corporation (SDIC), and it insures deposits up to a certain limit per depositor per bank. The coverage limit has been increased over time, with the most recent announcement in September 2023 stating that it will be raised to S$100,000 per customer from April 2024. This increase in coverage aims to provide greater protection for small depositors and their core savings.
| Characteristics | Values |
|---|---|
| Scheme Name | Deposit Insurance Scheme |
| Administered by | Singapore Deposit Insurance Corporation (SDIC) |
| Insured Deposits | Up to S$75,000 per depositor per bank (until March 31, 2024) |
| Future Insurance | Up to S$100,000 per depositor per bank (from April 1, 2024) |
| Scheme Members | All full banks and finance companies in Singapore, except those exempted by MAS |
| Coverage | Singapore dollar deposits in standard savings, current, or fixed deposit accounts |
| Non-Coverage | Foreign currency deposits |
| Protection | Covers life and general insurance policies in case of insurer failure |
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What You'll Learn
The Deposit Insurance Scheme
It is important to note that deposits are not insured separately in each branch office of a bank or finance company. Instead, all eligible accounts maintained with different branches of a full bank or finance company are aggregated and insured up to the specified limit. The money placed under the CPF Investment Scheme and CPF Retirement Sum Scheme is also aggregated and separately insured up to S$75,000.
While the scheme covers most deposits, it is important to note that some deposits or bank products are not covered. These typically include products that carry higher risks and are not part of the core savings or transaction accounts of small depositors. It is recommended to refer to the scheme member's register of insured products or their disclosure statements to understand the coverage of specific deposits.
From 1 April 2024, the Deposit Insurance Scheme will insure Singapore dollar deposits held by non-bank depositors in eligible savings, fixed deposit, and current accounts up to S$100,000 per depositor.
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Singapore Deposit Insurance Corporation (SDIC)
The Singapore Deposit Insurance Corporation (SDIC) administers the Deposit Insurance (DI) Scheme and Policy Owners' Protection (PPF) Scheme in Singapore. The SDIC is a company limited by guarantee under the Companies Act.
The Deposit Insurance Scheme provides a basic level of protection to small depositors. Currently, the Deposit Insurance Scheme protects non-bank depositors (including individuals, charities, sole proprietorships, partnerships, companies, and unincorporated entities) by covering their SGD monies placed with a Scheme member, for up to S$100,000 per depositor per Scheme member. This limit will increase from S$75,000 to S$100,000 in April 2024, ensuring that 91% of depositors are fully covered. All full banks and finance companies in Singapore are required to be members of the Deposit Insurance Scheme. The scheme covers deposits in SGD held in standard savings, current, or fixed deposit accounts. It also covers monies placed under the Supplementary Retirement Scheme, CPF Retirement Sum Scheme, and CPF Investment Scheme. Deposits held in different branches of the same bank or finance company are aggregated and insured up to the limit.
Some deposits or bank products are not covered by deposit insurance. These include structured deposits, subordinated debt, and other investments that carry higher risks and do not form part of the core savings or transaction accounts of small depositors. Scheme members are required to disclose in their deposit account statements, account opening forms, and marketing materials if they are offering insured products.
In the event that a Deposit Insurance Scheme member bank or finance company fails, the SDIC will pay the insured amounts to the depositors. The Policy Owners' Protection (PPF) Scheme, also administered by the SDIC, covers life and certain general insurance policies in the event of the failure of the insurer, which is a Scheme member.
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Insured deposits and accounts
The Deposit Insurance Scheme in Singapore protects deposits of up to $75,000 per depositor, per bank. This limit is applied on a per depositor, per scheme member basis, with deposits in savings and fixed deposit accounts with one bank aggregated and covered up to $75,000. From 1 April 2024, the protection limit will increase to $100,000 per depositor, per bank.
The scheme covers Singapore dollar deposits in savings, fixed deposit, and current accounts, as well as monies placed under the Supplementary Retirement Scheme, CPF Retirement Sum Scheme, and CPF Investment Scheme. It is important to note that deposits are not insured separately in each branch office of a bank or finance company. Instead, all eligible accounts maintained with different branches of a full bank or finance company are aggregated and insured up to the specified limit.
The Deposit Insurance Scheme is administered by the Singapore Deposit Insurance Corporation (SDIC), which will pay out the insured amounts if a member bank or finance company fails. The SDIC combines the separate protection limits of deposits from different banks in the event of a merger, providing a total protection limit for the insured depositor.
It is important to note that some deposits or bank products are not covered by deposit insurance, such as foreign currency deposits, structured deposits, and investment products. The main objective of deposit insurance is to protect the core savings of small depositors, who may otherwise lose their savings in the event of a bank failure.
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Increased coverage
Singapore's Deposit Insurance Scheme, administered by the Singapore Deposit Insurance Corporation (SDIC), covers deposits in SGD held in standard savings, current, or fixed deposit accounts. The scheme also covers monies placed under the Supplementary Retirement Scheme, CPF Retirement Sum Scheme, and CPF Investment Scheme.
All full banks and finance companies in Singapore are mandated to be members of the Deposit Insurance Scheme. In the event of a bank failure, the SDIC will pay out insured amounts to customers. Previously, the scheme insured up to $50,000 per depositor, which was increased to $75,000 in 2019. This increase fully insured more than 90% of depositors.
From April 1, 2024, the Monetary Authority of Singapore (MAS) will further raise the insurance coverage to S$100,000 per customer. This increase in the coverage limit has been broadly supported, and it is expected to fully cover 91% of all depositors. The MAS has also extended the coverage of the Policy Owners' Protection Scheme to include private-hire drivers and people working from home offices.
However, it is important to note that not all deposits or bank products are covered by deposit insurance. Some products carry higher risks and do not form part of the core savings or transaction accounts of small depositors. Scheme members are required to disclose if they are offering insured products in their deposit account statements, account opening forms, and marketing materials.
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Excluded deposits
The Deposit Insurance Scheme in Singapore covers deposits in SGD held in standard savings, current, or fixed deposit accounts. It also covers monies placed under the Supplementary Retirement Scheme, CPF Retirement Sum Scheme, and CPF Investment Scheme. However, it's important to note that not all deposits are insured. Excluded deposits refer to those that are not covered by the Deposit Insurance Scheme. Here are some key points about excluded deposits:
- Foreign currency deposits, dual currency investments, structured deposits, and other investment products are typically excluded from the Deposit Insurance Scheme. These deposits are not considered part of the core savings or transaction accounts of small depositors and carry higher risks.
- Banks and financial institutions may offer various products that are not insured. These can include complex financial products or investments that are not part of the core savings accounts. It is essential to carefully review the terms and conditions of such products before investing.
- Excluded deposits may not provide the same level of protection as insured deposits. In the event of a bank failure, insured deposits are covered up to a specified limit, while excluded deposits may not have any protection or guarantees.
- The list of excluded deposits can vary across different banks and financial institutions. It is recommended to refer to the specific bank's website or branch for their register of insured and excluded products. Scheme members are required to disclose this information in their deposit account statements and marketing materials.
- Some types of accounts, such as trust accounts or specific investment schemes, may have different insurance coverage. It is important to understand the insurance coverage for each type of account offered by the bank.
- The Deposit Insurance Scheme in Singapore has undergone revisions, and the coverage limits have been adjusted over time. While the current coverage limit is S$75,000 per depositor per bank, it will increase to S$100,000 per depositor per bank starting from April 1, 2024. This change will provide even greater protection for depositors.
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Frequently asked questions
Yes, all full banks and finance companies in Singapore are required to be members of the Deposit Insurance Scheme.
The Deposit Insurance Scheme protects your deposits with a member bank for up to a certain amount per depositor per bank. The scheme is administered by the Singapore Deposit Insurance Corporation (SDIC).
The scheme currently protects deposits of up to S$75,000 per depositor per bank. From April 1, 2024, this will increase to S$100,000 per depositor per bank.
In the event of a bank failure, the SDIC will step in and compensate depositors up to the insured amount.
