| Deposit Insurance Scheme |
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1. |
What is deposit Insurance? |
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Deposit Insurance protects depositors in the event a bank or finance company fails. |
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2. |
Who administers the Deposit Insurance Scheme in Singapore? What is the coverage under the Deposit Insurance Scheme? |
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The Singapore Deposit Insurance Corporation (“SDIC”) administers the Deposit Insurance Scheme in Singapore. |
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In the event a bank or finance company that is a Scheme member fails, all the SGD deposit accounts of an individual / charity with that member bank are aggregated and insured up to SGD 20,000, net of liabilities to the bank or finance company. |
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Moneys held in bank deposits under the CPF Investment Scheme (“CPFIS”) are separately insured up to SGD 20,000.* |
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3. |
Who is covered under the Deposit Insurance Scheme?
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Insured Deposits belonging to individuals and charities (Insured Depositors) are covered under the Scheme. Deposits of businesses, including sole proprietorships, partnerships, companies are not covered under the Insurance Scheme. |
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4. |
What Types of deposits are covered under the Deposit Insurance Scheme? |
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SDIC insures Singapore dollar denominated deposits including accrued interest, placed with a full bank or finance company in any of its branches in Singapore. This includes deposits held in: |
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Savings Accounts |
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Fixed Deposit Accounts |
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Current Accounts |
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Deposits under the CPF Investment Scheme* |
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5. |
Whether the deposits placed with SBI are covered under the Scheme? |
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Yes. State Bank of India Singapore’s SGD deposit accounts are eligible for the Insurance cover under the Scheme and are listed in the Insured Deposit Register. This is available for information to customers in our branches and on our website - www.sbising.com. As of now, State Bank of India Singapore does not offer CPFIS deposit scheme. |
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6. |
What types of financial products are not covered under the Deposit Insurance Scheme? |
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The SDIC does not insure any financial products except those listed in our Insured Deposit Register. Products that are not insured include |
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Foreign Currency Deposits |
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Structured Deposits |
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Deposits placed as collateral |
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Investment products such as (i) Unit Trusts, (ii) Shares and (iii) other securities. |
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7. |
Do I need to pay premiums for deposit insurance coverage? |
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No, depositors do not need to pay premiums for deposit insurance coverage. |
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8. |
How does the Deposit Insurance Scheme work? |
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Deposits held in the name of Individual / Eligible charities: |
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All the eligible accounts held by an individual/charity at the failed Scheme member, except for deposits under the CPF Investment Scheme, are aggregated and insured up to SGD 20,000, net of liabilities of the individual/charity to the scheme member. Deposits are not insured separately in each branch office of a scheme member – this means that all the eligible accounts of an individual/charity with different branches of the failed scheme member are aggregated and insured up to SGD 20,000 net of liabilities of the individual/charity to the Scheme member. |
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Deposits under the CPF Investment Scheme: |
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Moneys held in bank deposits under the CPF Investment Scheme* will be separately insured up to SGD 20,000. |
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9. |
For joint accounts, how is the balance divided for the purpose of the Deposit Insurance Scheme? |
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For deposits in joint accounts, each joint account holder’s share is combined with his other deposits held in his own name. The aggregate amount of eligible deposits is insured up to SGD 20,000. Each joint account holder is assumed to have an equal share in the joint account, unless the scheme member has records that show otherwise. |
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Illustration |
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Computation of Deposit Insurance Coverage with Joint Accounts: |
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Suppose you have SGD 15,000 in your savings accounts and you have SGD 20,000 in a joint account with your suppose. Your spouse does not have any personal account. Each person’s share of the joint account is considered to be equal unless otherwise stated in the bank’s records, for the purposes of calculating deposit insurance coverage. The amounts insured are computed as follows: |
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| Details of deposit |
Account Balance |
Amount Insured |
Amount Not Insured |
| Savings account |
15,000 |
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| Your share of joint account (20,000/2) |
10,000 |
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| Total deposits |
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20,000 |
5,000 |
| Total Amount Insured |
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20,000 |
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| Your spouse’s share of joint account (20,000/2) |
10,000 |
10,000 |
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| Total Amount Insured for your spouse |
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10,000 |
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10. |
Whether Deposits Held in Trust and Client Accounts are also covered under the Scheme? |
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Eligible deposits held in Trust or in Client Accounts for the benefit of an individual or charity are insured provided that the scheme member’s records can identify the beneficiary or client. The beneficiary’s share of the deposit is aggregated with his other insured deposits and insured up to SGD 20,000. |
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| * At present SBI Singapore does not offer the CPF Investment Scheme. |
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