Singapore Deposit Insurance Corporation Limited (SDIC) administers the Deposit Insurance (DI) Scheme and Policy Owners’ Protection (PPF) Scheme in Singapore. SDIC is a company limited by guarantee under the Companies Act. The board of directors is accountable to the Minister in charge of the Monetary Authority of Singapore (MAS).
1. What is the Deposit Insurance Scheme?
A: The Deposit Insurance Scheme protects depositors in the event a DI Scheme member fails by compensating insured deposits up to a maximum of S$50,000.
6. Are foreign banks included under the Deposit Insurance Scheme?
A: All full banks and finance companies in Singapore are required to be members of the Deposit Insurance Scheme. However, wholesale and offshore banks are not required to be members. So a foreign bank which has full-banking license would be included under the Deposit Insurance Scheme.
9. What types of deposits are covered under the Deposit Insurance Scheme?
A: Singapore dollar savings accounts, fixed deposits, current accounts, and monies and deposits under the Supplementary Retirement Scheme are covered by the Deposit Insurance Scheme. In addition, monies and deposits under the CPF Investment Scheme and CPF Minimum Sum Scheme are aggregated and separately insured up to S$50,000.
12. Why are foreign currency and structured deposits not covered? They are very popular and the banks have been actively promoting it.
A: Deposit insurance is mainly to protect small depositors. Many of them do not have foreign currency or structured deposits. Also, foreign currency deposits and structured deposits have an investment feature where the investor is required to assume higher risk for the higher return. Therefore these products do not form part of the core savings or transaction accounts of small depositors.