What Does SDIC’s Deposit Insurance Scheme And Policy Owners’ Protection Scheme Cover?

Have you ever feared the thought of losing all your money if a financial crisis hits home? It’s a valid fear and it’s something we should consider carefully. However, don’t panic. You don’t need to go running to the bank and withdrawing all your money to store them under your bed either. This is because bank deposits in Singapore are protected under a scheme that guarantees your savings.

There’s also a separate scheme that applies to insurance policies, like life insurance and home insurance.

We’ll explain.

High Interest Rates
Base Interest Rate p.a.0.05%
Max. Interest Rate p.a.3.8%
Min. BalanceS$3,000

Key Features

No minimum salary credit

DBS Multiplier Account is a deposit account with a base interest rate of 0.05% per annum

Bonus interest rates: 1.40% to 3.80% per annum. DBS Multiplier Account 2020 interest rates have been updated as of 1 August 2020

To enjoy bonus interest rates, you need to credit your salary or dividends via GIRO to any DBS/ POSB deposit account that you hold, and transact a minimum of S$2,000 on any DBS/ POSB credit card you hold, DBS/ POSB home loan monthly instalments, DBS/ POSB insurance regular monthly premium, or DBS investments. Your bonus interest rate increases if you transact in more of the above categories

Bonus interest rates for 29-year-olds and below: Credit your income and spend above S$500 via PayLah! to qualify for 0.30% bonus interest rates on your PayLah! retail spend

DBS Multiplier 2020 interest rate updates: As of 1 August 2020, interest rates have been revised for DBS Multiplier account holders with transactions in 1 and 2 categories. Refer to Bonus Interest Rate tab below to see the change in interest rates

Students, NSF, self-employed, salaried or retired individuals are eligible to apply

Interest Rate

Base Interest p.a.0.05%

Bonus Interest Rate

Salary Credit + 1 transaction categoryUp to 1.30% p.a.Salary credit + 2 transaction categoryUp to 2.80% p.a.Salary credit + 3 transaction categoryUp to 3.80% p.a.


Citizenship StatusSingaporeans, PRs and ForeignersMinimum Initial DepositS$0Minimum Average Monthly BalanceS$3,000Fall-below FeeS$5Monthly Account FeeN/ANo. of ATMs AvailableWide coverage of ATM islandwide (>2,000)Cashback RateN/A

See all details 

What happens if a bank fails in Singapore?

The fall of the Lehman Brothers during the 2008 financial crisis shook the world. 10 years have passed and hundreds more banks have failed since. Yes, hundreds.

Most recently, the lucky name that has been hogging the headlines is Credit Suisse. After a whole slew of scandals and multi-billion dollar losses, the Swiss giant finally announced its takeover by UBS on 19 Mar 2023.

Singapore has yet to experience a failed bank so far, but we need to be prepared for the possibility. What if one of Singapore’s major banks get into trouble?

That’s when the Singapore Deposit Insurance Corporation (SDIC) comes in to save the day.

The SDIC was established in 2006 to protect the savings of depositors in the event of a failure of banks or finance companies. This includes deposits in savings, current and fixed deposit accounts.

The SDIC is in place to create a more stable banking environment. It does so by collecting premiums from banks and finance companies that are part of the scheme. Banks and finance companies that take higher risks will have to pay higher premiums. The amount of deposits held by a bank or finance company will affect the premium as well.

SDIC guarantees your money and even your insurance policies through administering the Deposit Insurance (DI) and the Policy Owners’ Protection (PPF) scheme. Here’s how they work.

How does the Deposit Insurance (DI) Scheme work?

In the event a DI Scheme member bank or finance company fails, all of your insured deposits with that member are aggregated and insured up to S$75,000 by SDIC. Insured deposits held in trust and client accounts held by non-bank depositors are insured up to S$75,000 per account. Separately, monies placed with a Scheme member bank under the CPF Investment Scheme (CPFIS) and CPF Retirement Sum Scheme (CPFRS) are aggregated and insured up to S$75,000.

This means that should a bank or finance company in Singapore fail, you will be paid up to a maximum amount of $75,000, depending on the amount of your deposit.

Beware that there are exceptions to the coverage. This includes:

Foreign currency deposits​
Structured deposits
Investment products such as unit trusts, shares and other securities

In the event that a bank fails, payouts will be made automatically through cheques, casher’s orders or through electronic payment methods. SDIC’s target is to send out most of the payments to depositors within 7 working days after payout is activated by MAS. There’s no need to file any claims and you can pretty much sit back and relax. Sweet.

Additional 3.5% p.a bonus interest till 28/02/23
Base Interest Rate p.a.1.50%
Max. Interest Rate p.a.5.50%
Min. BalanceNone Required

Key Features

No minimum balances

No fall below fees

Simple, straightforward account

No lock-in period

Enjoy up to 5.50% p.a. on your deposits

Interest Rate

Base Interest p.a.1.5%


Citizenship StatusSingaporeans, PRs, and foreignersMinimum Initial DepositS$0Minimum Average Monthly BalanceS$0Fall-below FeeS$0Monthly Account FeeN/ANo. of ATMs Available Limited coverage of ATM islandwide (<10)Cashback Rate

See all details 

How does the Policy Owners’ Protection (PPF) Scheme work?

The PPF scheme protects life insurance and certain general insurance (like personal motor or personal property insurance) policy owners in the event an insurer fails. It provides 100% protection for the guaranteed benefits of your insurance policies. For life insurance policies, caps will apply.

With the enhancement of the protection scheme, motor and property insurance policies are now covered, even if the car or property is used for commercial purposes.

Before, if one were to buy a property and turn it into an office, that property insurance bought would not be protected by the PPF scheme. Now, people who own home offices and private-hire drivers will benefit from the enhanced protection.

Which banks are covered under the Deposit Insurance Scheme?

All banks and finance companies in Singapore approved by the MAS are members of the DI Scheme. If you bank with any one of these Deposit Insurance Scheme members, your deposits are automatically protected.

Similarly, MAS-approved life or general insurers are covered in the scheme.

You can find the list of PPF scheme members on the SDIC website too.

Base Interest Rate p.a.0.01%
Max. Interest Rate p.a.4.88%
Min. BalanceS$3,000

Key Features

Standard Chartered Bonus$aver is a current savings account with a base interest rate of 0.01% per annum on your deposit amount (updated rates as of 1 October 2020)

Bonus interest rates range from 0.07% p.a. for bills, 0.40% p.a. for Standard Chartered debit or credit card spend, to 0.90% per annum for insurance purchase with Standard Chartered

Complete transactions in your Standard Chartered Bonus$aver account from any of these 5 categories to earn bonus interest: Card Spend, Salary Credit, Bill Payment, Insure or Invest.

Base interest will be calculated at the end of each day, and credited at the end of the month

Bonus interest will be calculated at the end of each calendar month, based on the average daily balance of your SGD balances in your Bonus$aver account, and credited in the following month.

Multi-currency feature: Access funds in up to 14 currencies with Bonus$aver account. The multi-currency feature on Bonus$aver account gives you the freedom to shop globally online or offline with S$0 overseas transactions fee*, invest in global markets with just one account and enjoy competitive foreign exchange rates when converting currencies.

Interest Rate

Base Interest p.a.0.01%

Bonus Interest Rate

Monthly Card Spending Up to 2% p.a.Monthly Salary Credit2.50%Monthly Bill Payment 0.33%Insurance 1.50%Investment1.5%


Citizenship StatusSingaporeans, PRs, and foreignersMinimum Initial DepositS$0Minimum Average Monthly BalanceS$3,000Fall-below FeeS$5Monthly Account FeeN/ACashback RateN/A

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How does the deposit insurance scheme cover joint accounts?

For joint accounts, the funds in the account will be split evenly unless otherwise specified. If you have another individual account under the same bank, your split deposit amount will be combined with your individual deposit amount. The total amount will then be covered up to $75,000.

For example, if you and your husband have a joint account of $50,000, and you have a separate account of $60,000, your total deposit amount will be $85,000. However, you will only be covered up to $75,000.

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Original article: What Does SDIC’s Deposit Insurance Scheme And Policy Owners’ Protection Scheme Cover?.

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