Deposits and insurance in Singapore

In Singapore, people enjoy a good financial system. Supported by strict law and regulations under the watchful eyes of the MAS (Monetary Authority of Singapore).

People from all over the world put their money in Singapore because we believe it is safe. We trust the financial institutions here, from banks, insurance companies, investment banks and etc.

But how safe are you? How much of your money is protected under the law here?

MAS aim is to supervise and ensure stability of the financial system. However, MAS does not guarantee the soundness of individual financial institutions. Therefore, you must know what will happen to your money in case of failure of a financial institution.

There are 2 schemes which will protect your money.

1. Deposit insurance scheme.

In the event a Deposit Insurance 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.

2. Policy owner's protection scheme.

This scheme protects existing and future policyowners should a life insurer, which is a Member of the PPF Scheme, fail. Policyowners receive 100% protection for the guaranteed benefits of their life insurance policies, subject to maximum caps where applicable. (The PPF Scheme also provides 100% coverage for general insurance policies that are covered under the Scheme; no caps are applicable.)

These 2 schemes are administered by SDIC(Singapore Deposit Insurance Corporation).
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).

Please visit https://www.sdic.org.sg/index.php for more info and details.

In simple terms, your money in the bank is protected only up to $50,000 but your benefit in insurance policy is 100% of the guaranteed sum assured and surrender values. Subject to terms and conditions. So never take anything for granted, that is your hard earned money. Always be cautious. You never know what's going to happen, such as the bankruptcy of Lehman brothers.

Cheers! Have a great day.