A Deposit Insurance Fund (DI Fund) has been established from premium contributions of Scheme members for compensation to insured depositors in the event of a failure of a Scheme member.  The DI Fund will be invested in safe and liquid assets such as Singapore Government Securities, deposits with MAS and other assets approved by the Minister.

Scheme members pay annual premium contributions to the DI Fund. The premiums levied on member institutions are differentiated according to the risk they pose to the DI fund.  These risk-based premiums are charged to member institutions as a percentage of the amount of insured deposits they hold, subject to a minimum annual premium of $2,500.  SDIC may impose late payment fees on Scheme members.  The premium rates and calculation of premium contributions payable by Scheme members are set out in the Deposit Insurance Regulations 2006.