Why S$100,000 is the number to know about your bank deposits

Most people in Singapore never think about what would happen if their bank failed, and with good reason: the banking system is closely supervised by the Monetary Authority of Singapore. But MAS itself does not guarantee any individual bank, and for that rare case there is a separate safety net. Its key number is S$100,000, and how that number is counted is less obvious than it looks.

The Deposit Insurance Scheme is run by the Singapore Deposit Insurance Corporation (SDIC). This guide sets out what it covers, how it treats several accounts, joint accounts and CPF money, and what a depositor would actually need to do.

Who runs it, and why

SDIC describes the scheme’s purpose as protecting the core savings of small depositors in the event that a full bank or finance company fails. All full banks and finance companies in Singapore are members unless MAS exempts them, including foreign banks with a full banking licence; wholesale and merchant banks need not be. SDIC is not part of the Government: it is a company limited by guarantee, designated under the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011, whose board is accountable to the Minister in charge of MAS. Compensation is paid from a fund built up from premiums that member banks pay each year.

What is covered, and what is not

Source: SDIC, Scope of DI Coverage and FAQs. Each member keeps a register of insured deposits you can ask to see.

SDIC explains why foreign-currency and structured deposits are excluded: they behave more like investment products, where the depositor accepts higher risk for a potentially higher return, and are not typically part of the core savings of small depositors. A product carries the deposit insurance disclosure statement on its account-opening form, statements and marketing material if it is insured.

Per depositor, per bank, not per account

The S$100,000 limit applies to the total of your insured deposits at one scheme member. A savings account and a fixed deposit at the same bank are added together. Deposits at a second bank are covered separately, up to another S$100,000.

Invented figures applying SDIC’s per-depositor, per-member rule. Not a statement about any real bank.

The uninsured S$20,000 at Bank A is not simply lost. SDIC says that if compensation is less than your total deposits with a failed member, it submits a claim on your behalf to the liquidator for the difference; what is recovered then depends on the liquidation.

Joint accounts, sole proprietors and merged banks

Joint accounts are divided evenly between holders unless the bank’s records show otherwise. Each holder’s share is then added to their own accounts at that bank. SDIC’s example: a couple’s joint account holds S$90,000 and one spouse also has S$60,000 alone; that spouse’s total of S$105,000 is covered up to S$100,000.

Sole proprietorships are aggregated with the owner’s personal deposits at the same bank. Partnerships are treated as one depositor, separate from the partners. Trust and client accounts are insured per account.

If two banks merge and you held insured deposits at both, SDIC applies a combined protection limit of up to S$200,000 for one year after the transfer. A fixed deposit pledged as loan collateral remains covered.

Good to know

You do not apply and you do not pay. Coverage is automatic. SDIC asks depositors only to keep their personal details up to date with their bank and to register for PayNow with their NRIC or FIN, so any compensation can reach them quickly.

What would happen if a bank failed

A payout follows a court order to wind up a member, or a determination by MAS that it is insolvent or about to suspend payments. Depositors do not file claims: SDIC computes payouts from the failed bank’s records, announces the payout in the Government Gazette and the media, and aims to send most payments within seven working days of activation, by PayNow to NRIC, FIN or UEN, or by cashier’s order to the address registered with the bank. An online portal to check compensation would be opened at that time.

That process has a scam lesson built in. Nobody needs to “register a claim” with a link, pay a fee or hand over a bank login to receive deposit insurance. Our guide to Money Lock and the 24-hour hold covers the bank-side protections against the far more common risk of being tricked into moving money yourself.

Who this matters for, and what to check

• Anyone with more than S$100,000 of Singapore-dollar deposits at a single bank.
• Couples with large joint balances: each holder’s share is added to their own accounts at that bank.
• Savers holding foreign-currency or structured deposits: these are outside the scheme.
• SRS and CPF Investment Scheme users: these monies are covered, under the specific rules above.
• Everyone: keep your bank details current and link PayNow to your NRIC.

The takeaway

Deposit insurance in Singapore covers up to S$100,000 of Singapore-dollar deposits per depositor per scheme member, automatically and at no cost, with CPF Investment and Retirement Sum Scheme monies covered separately. Count your balances bank by bank rather than account by account, remember what sits outside the scheme, and note that government-backed Savings Bonds work on different rules altogether: see how Singapore Savings Bonds work.