Singapore consumers enjoy the benefits of a sound banking system. Banks and finance companies licensed in Singapore are supervised by the Monetary Authority of Singapore (MAS). It is MAS’ aim to ensure the stability of the banking system in Singapore and to require financial institutions to have sound risk management systems and adequate internal controls.
However, MAS does not guarantee the soundness of individual financial institutions. Therefore, a Deposit Insurance Scheme (DI) has been set up to protect the core savings of small depositors in Singapore in the event a full bank or finance company fails.
In the event a DI Scheme member bank or finance company fails, all of your eligible accounts with that member are aggregated and insured up to S$50,000. Trust and client accounts held by non-bank depositors are insured up to $50,000 per account.
Moneys held in bank deposits under the CPF Investment Scheme and CPF Minimum Sum Scheme are aggregated and separately insured up to S$50,000.
Scope of DI Coverage
Types of depositors covered
SDIC covers individuals and other non-bank depositors with insured deposits placed with a DI Scheme member. Other non-bank depositors include sole proprietorships, partnerships, companies and unincorporated entities like associations and societies.
Types of deposit products covered
SDIC insures Singapore dollar denominated deposits placed with a DI Scheme member in any of its branches in Singapore. These include:
- A deposit held in a savings account
- A deposit held in a fixed deposit account
- A deposit in a current account
- Any monies placed under the CPF Investment Scheme
- Any monies placed under the CPF Minimum Sum Scheme
- Any monies placed under the Supplementary Retirement Scheme
- Murabaha, as prescribed by the Authority
Each DI Scheme member maintains a register of insured deposits it offers. To find out if a deposit account offered by your bank or finance company is insured, you can refer to the institution’s register of insured deposits.
Types of deposit products not covered
Financial products that are not insured by SDIC include
- foreign currency deposits
- structured deposits
- investment products such as unit trusts, shares and other securities
Source: Singapore Deposit Insurance Corporation Website
Sourcing for an insurance quotation can be tedious and time consuming; the claim process can become pro-longed and complicated. We provide one stop services for you to handle these and offer the most competitive quotation.
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Last Updated on Monday, 29 August 2011 15:01
