SDIC & Deposit Insurance Scheme
While Singapore has a stable banking and financial system, there is no guarantee that a bank failure will never occur in Singapore. In the complex and globalized financial environment, ordinary depositors may lose their savings even in reputable and well-supervised jurisdictions. When a financial institution fails, ordinary depositors may suffer the loss of their core savings and the funds to support their daily living expenses. The Deposit Insurance Scheme protects depositors in the event that a bank or a financial institution in Singapore fails. This is by compensating the depositors up to a maximum of S$50,000. Individuals and non-bank depositors such as sole proprietorship, partnerships, companies, associations and societies are covered by the Deposit Insurance Scheme. The scheme covers deposits that are in Singapore dollars and held in standard savings, current or fixed deposit accounts. Studies show that S$50,000 is sufficient to fully insure a significant majority of depositors should their bank or financial institution fail. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. Singapore Deposit Insurance Corporation Limited (SDIC) is the organisation that administers the Deposit Insurance Scheme and Policy Owners' Protection Scheme. The board of SDIC is accountable to the Minister in charge of the Monetary Authority of Singapore (MAS). More information on Deposit Insurance Scheme and the SDIC can be found at the SDIC website.