Singapore Deposit Insurance Corporation

Amount insured under the Scheme

In the event a Scheme member fails, all of your eligible accounts with that member, except for deposits under the CPF Investment Scheme, are aggregated and insured up to S$20,000, net of your liabilities to the member, such as loans. Deposits are not insured separately in each branch office of a Scheme member i.e. all your eligible accounts maintained with different branches of a Scheme member are aggregated and insured up to S$20,000 net of your liabilities to the member.

Moneys held in bank deposits under the CPF Investment Scheme (CPFIS) are separately insured up to S$20,000.

Illustration 1 – Calculation of deposit insurance coverage with different deposits

	Account Balance	Amount Insured	Amount Not Insured
Suppose you have S$15,000 in your savings account, S$2,500 in your current account and a US dollar fixed deposit, of US$10,000 with Bank X. You have also placed S$50,000 of your CPF monies in a fixed deposit under the CPFIS. The calculation is as follows:
Savings Account (a)	S$15,000
Current Account (b)	S$2,500
Total insured deposits (c = a + b)	S$17,500	S$17,5001	0
Fixed deposit under CPFIS	S$50,000	S$20,0002	S$30,0002

US Dollar Fixed Deposit	US$10,000	0	US$10,0003
Total amount insured		S$37,500
Notes: Insured deposits are aggregated and insured up to S$20,000. CPF monies placed in fixed deposits under CPFIS are insured up to S$20,000 Foreign currency deposits are not covered under the Deposit Insurance Scheme

Illustration 2a –You have deposits and an outstanding instalment loan, such as housing loan, with the same bank

	Account Balance	Amount Insured
Suppose you have S$15,000 in your savings account and an outstanding housing loan of S$200,000 with the same bank. The monthly instalment of your housing loan is S$1,500 and you have 2 months' instalments payable to your bank. The amount insured is computed as follows:
Savings Account (a)	S$15,000
Housing Loan instalments due (b)	S$ 3,000
Net Deposits = Deposits less instalments due (c = a – b)	S$12,000	S$12,000
Total amount insured		S$12,0001
Notes: Under Singapore’s insolvency law, your deposits will automatically be used to pay off your outstanding liabilities with the bank, if the bank fails. In this illustration, after netting off your outstanding liabilities of 2 months’ instalments due, your deposit with the bank will be reduced to S$12,000. This amount (S$12,000) is insured by SDIC. Your recovery of this amount from the failed bank would not depend on whether the bank has sufficient assets to meet its liabilities, as would be the case without deposit insurance.

Illustration 2b –You have deposits and an outstanding revolving loan, such as credit card facility, with the same bank

	Account Balance	Amount Insured
Suppose you have S$2,000 in your savings account and a credit card account with a credit limit of S$10,000 with the same bank. The outstanding balance payable in full on your credit card account is S$5,000. The amount insured is computed as follows:
Savings Account (a)	S$2,000
Credit Card outstanding balance payable in full (b)	S$5,000
Net Loan = Outstanding balance payable in full less Deposits (c = b – a)	S$3,000
Total amount insured		S$01
Notes: Under Singapore’s insolvency law, your deposits will automatically be used to pay off your outstanding liabilities with the bank, if the bank fails. In this illustration, your savings of S$2,000 will be used to partially pay the outstanding balance payable on your credit card account. The outstanding credit card balance payable will therefore be reduced to S$3,000, and your deposit reduced to S$0. As you would already have recovered the full amount of your deposit through insolvency netting, there is no remaining claim against the failed bank. Therefore, there will not be a deposit insurance payment.

Joint Accounts

For deposits in joint accounts, each joint account holder’s share of the joint account is combined with his other insured deposits held in his own name. The aggregate amount of insured deposits is insured up to S$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.

Illustration 3 – Calculation of deposit insurance coverage with Joint Accounts

	Account Balance	Amount Insured	Amount Not Insured
Suppose you have S$15,000 in your savings account and you have S$20,000 in a joint account with your spouse. 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 SDIC coverage. The calculation is as follows:
Savings Account	S$15,000
Your share of Joint Account (S$20,000 ÷ 2)	S$10,000
Total insured deposits	S$25,000	S$20,000	S$5,000
Total amount insured		S$20,000

Your spouse’s share of Joint Account (S$20,000 ÷ 2)	S$10,000	S$10,000
Total amount insured for your spouse		S$10,000

Deposits Held in Trust and Client Accounts

Deposits held in trust or in client accounts for the benefit of an individual or charity are insured provided that the records of the Scheme member identify the beneficiary or client. The beneficiary’s share of the deposit is aggregated with his other insured deposits and insured up to S$20,000.