Last updated: August 2026 | SeaMoneyTips
What Is the Singapore Deposit Insurance Scheme (SDIC)?
If a bank in Singapore runs into serious trouble and fails, most people would expect to lose the money they kept inside. The Singapore Deposit Insurance Scheme exists to make sure that does not happen for everyday savers. It is a safety net run by the Singapore Deposit Insurance Corporation Limited (SDIC) under the supervision of MAS.
The scheme was introduced in 2005 under the Deposit Insurance Act. Every full bank and finance company licensed in Singapore is a compulsory member, which means the protection applies automatically. You do not need to sign up, pay a fee, or fill in any paperwork to be covered.
Since the scheme began, no member bank has ever failed, so no payout has been needed. But the protection is real and it is built into the way Singapore's banking system works. The coverage limit was raised over time from S$20,000 in 2005 to S$50,000 in 2011, and then to S$100,000 in 2019, where it stands today.
How Much Insurance Coverage Do You Get?
The key number to remember is S$100,000. That is the maximum amount of protected deposits each depositor gets per member institution. In other words, the limit applies per bank, not per account and not per bank branch.
This is the most common misunderstanding about the scheme. If you hold five accounts at the same bank, the total of those accounts is still protected only up to S$100,000. But if you spread money across three different banks, each bank gives you a separate S$100,000 of coverage, so your total protection becomes S$300,000.
For joint accounts, each account holder is protected separately up to the limit for their share of the deposit. Deposits held in trust are also covered separately for each beneficiary, up to the same limit. This structure means most ordinary savers in Singapore are fully protected without thinking about it.
What Types of Deposits Are Covered?
The scheme covers the products that are genuinely deposits, whether they are held in Singapore dollars or in foreign currency. The main categories are:
- Savings accounts, including high yield savings accounts offered by digital banks
- Current accounts used for daily spending and salary crediting
- Fixed deposits, including fixed deposit accounts opened online
- Foreign currency deposits held at a member bank
- Monies deposited under the CPF Investment Scheme (CPFIS) with a member bank
Digital banks such as GXS Bank and Trust Bank are full members of the scheme, so the money you keep in their savings accounts enjoys the same S$100,000 protection as money at the older established banks. Before you park a large sum anywhere, it is worth checking that the institution carries the official Deposit Insurance sign, which every member must display.
What Is Not Covered by Deposit Insurance?
The scheme protects deposits only. It does not protect investment products, even when you buy them through your bank. This is where savers sometimes get a nasty surprise, so it pays to know the list:
- Unit trusts and investment-linked policies (ILPs)
- Shares, including preference shares sold through a bank
- Corporate bonds, government securities bought via a bank, and structured deposits
- Insurance policies of any kind, including endowment plans
- Safe deposit box contents and gold or other commodities held by the bank
- CPF balances held by the CPF Board itself, which are governed by CPF rules instead
The easy way to remember this rule: if your money is sitting in a plain deposit account, it is usually covered. If your money has been used to buy a product that carries investment risk, that product is not covered.
How to Check If Your Money Is Protected
Verifying your protection takes less than a minute. First, look for the Deposit Insurance sign at your bank's branch or on its website. Every member institution is required to display this sign prominently.
Second, you can check the official list of scheme members on the SDIC website at sdic.org.sg. The site also has a calculator that helps you work out your total protected deposits. Third, when you open a new account, simply ask whether the institution is a Deposit Insurance scheme member and whether your product is a covered deposit.
If your total cash at one bank stays under S$100,000, you are fully protected in almost every realistic scenario. If you hold much more than that, treat the extra as beyond the safety net and manage it deliberately.
Practical Tips to Maximize Your Deposit Protection
Using the scheme well is mostly about structure. These habits will keep your cash inside the safety net:
- Stay under the limit at each bank. Keep at most S$100,000 of unprotected-excess cash at any single institution.
- Spread large cash balances across banks. Each member bank gives you a fresh S$100,000 limit, so two banks mean S$200,000 of total protection.
- Use joint accounts deliberately. A joint account with a spouse gives each holder separate coverage up to the limit.
- Keep deposits and investments in separate accounts. Mixing them makes it harder to see what is actually covered.
- Re-check coverage when rates change. When a bank offers a promotional fixed deposit rate, confirm the product is a covered deposit before moving a large amount.
For savers comparing where to hold cash, our guide to the best high yield savings accounts in Singapore shows which accounts combine strong rates with this protection. If you prefer locked-in rates, the Singapore fixed deposit rates 2026 guide compares options across member banks.
SDIC Coverage vs Singapore Savings Bonds: Which Is Safer?
People often ask how deposit insurance compares with Singapore Savings Bonds (SSB), because both are pitched as safe places for cash. The answers are different but complementary.
| Feature | SDIC-Protected Bank Deposit | Singapore Savings Bonds (SSB) |
|---|---|---|
| Backing | Deposit Insurance Fund managed by SDIC | Full faith and credit of the Singapore Government |
| Protection limit | S$100,000 per depositor per bank | No upper limit on principal |
| Risk of loss | Very low, but capped at S$100,000 | Effectively zero for principal |
| Liquidity | Instant access (savings) or fixed term (FD) | Can redeem any month, no penalty |
| Interest | Bank rates, can change anytime | Step-up rates locked for 10 years |
Neither instrument has failed a saver in modern Singapore history. Many households use SDIC-protected deposits for emergency cash and SSB for the medium-term portion of their savings. For a deeper look at the government-backed option, read our Singapore Savings Bonds guide.
Frequently Asked Questions
What happens if my bank fails in Singapore?
SDIC will pay out your protected deposits quickly, typically within 7 working days of the bank being placed in provisional liquidation. You do not need to file a claim; the payout is made automatically up to S$100,000 per depositor.
Is S$100,000 coverage per bank or per account?
Per bank. All your deposit accounts at one member institution are added together and protected up to S$100,000 in total. Opening more accounts at the same bank does not increase your coverage.
Are fixed deposits covered by SDIC?
Yes. Fixed deposits are covered deposits under the scheme, as long as the bank is a member and you are not using the money to buy an investment product.
Are digital banks like GXS and Trust covered?
Yes. Digital banks in Singapore are full Deposit Insurance scheme members, so savings balances at GXS Bank and Trust Bank are protected up to S$100,000 per depositor, the same as at traditional banks.
Does SDIC cover foreign currency deposits?
Yes, foreign currency deposits held at a member bank are protected, but the S$100,000 limit is the combined total across all your covered deposits at that bank, including the Singapore dollar equivalent.
Are CPF balances covered by deposit insurance?
No. Money in your CPF accounts is held by the CPF Board and follows CPF rules, not the Deposit Insurance scheme. However, CPFIS funds placed as deposits with a member bank are covered.
Key Takeaways
- Every full bank and finance company in Singapore protects your deposits up to S$100,000 per depositor per bank.
- Savings, current, fixed, and foreign currency deposits are covered, but investment products are not.
- The limit applies per bank, so spreading cash across member institutions multiplies your protection.
- Check for the Deposit Insurance sign or the SDIC member list to confirm your bank is covered.
- Use SDIC-protected deposits for emergency cash and consider SSB for larger, longer-term safe savings.
Conclusion
The Singapore Deposit Insurance Scheme is one of the quiet pillars of financial security in Singapore. Most people never think about it, and that is exactly how a good safety net should work. With S$100,000 of protection per bank, automatic membership, and a payout track record target of days rather than months, it makes bank deposits one of the safest home bases for your money.
If you are still building up your cash reserves, see how the best digital banks in Singapore stack up on rates and features. And remember, this article is for education only and is not financial advice. Always check your own coverage on the official SDIC and MAS websites before making large deposit decisions.
This article was written by the SeaMoneyTips Editorial Team, focused on personal finance education for Indonesia and Singapore readers. For inquiries, please contact us.