If your bank collapsed tomorrow, how much of your savings would you get back?
The Singapore Deposit Insurance Corporation (SDIC) insures Singapore dollar deposits of up to $100,000 per depositor at each bank or finance company. When MAS proposed this limit in 2023, it said the change would result in 91% of depositors being fully covered.
The catch is that the limit is easy to go over without noticing, especially if you bank with both DBS and POSB, or keep SRS cash at the same bank as your savings.
Key Takeaways
- SDIC insures Singapore dollar deposits of up to $100,000 per depositor per bank or finance company, a limit in place since 1 April 2024.
- SDIC deposit insurance is automatic and free, with no form to fill in and no premium to pay.
- Most insured deposits at the same bank are added together under one limit, and DBS and POSB accounts share a single $100,000 limit.
- Foreign currency deposits, structured deposits, and investments such as unit trusts and shares are not covered by SDIC deposit insurance.
- For individual life policies, SDIC’s Policy Owners’ Protection (PPF) Scheme protects guaranteed benefits up to $500,000 of sum assured and $100,000 of surrender value per life assured per insurer.
SIDE NOTE
A policy bought years ago. Savings in three places. A will that's still on the to-do list.
None of it is wrong. It's just not a plan yet.
There's an order that turns the pieces into one system, and it doesn't require becoming a finance expert. Here's the order, in 7 steps, so you know what to sort out first.
What Is SDIC?
SDIC is the Singapore Deposit Insurance Corporation. It runs two schemes that protect your money if a bank, finance company, or insurer in Singapore fails:
- The Deposit Insurance (DI) Scheme protects your Singapore dollar deposits
- The Policy Owners’ Protection (PPF) Scheme protects your insurance policies
Is SDIC part of the government?
No, SDIC isn’t part of the government. It’s a company limited by guarantee, designated under the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 to administer both schemes.
Its board is accountable to the Minister in charge of the Monetary Authority of Singapore (MAS), and MAS decides whether a payout is made.
How Much Does SDIC Cover? The $100,000 Limit Explained
SDIC covers up to $100,000 per depositor, per bank or finance company. For most deposits, the limit applies to your balances at that institution added together, not to each account separately.
So $60,000 in a savings account and $60,000 in a fixed deposit at the same bank are insured for $100,000 in total. The other $20,000 isn’t covered by SDIC.
Held at two different banks, the same $120,000 would be fully covered.
What counts as an insured deposit
Only Singapore dollar deposits placed with a DI Scheme member in Singapore are insured. Under the DI Scheme rules, these include money in:
- Savings accounts
- Current accounts
- Fixed deposits
- The Supplementary Retirement Scheme (SRS)
- The CPF Investment Scheme (CPFIS) and CPF Retirement Sum Scheme
Not sure about a particular product? Insured products display the DI Scheme disclosure statement on their account opening forms, statements, and marketing materials. If you’re comparing fixed deposits, look for that statement before you commit.
How your accounts are added up
SDIC’s compensation rules work like this:
- Several accounts at one bank are added together and insured up to $100,000 in total.
- Accounts at different banks each get their own $100,000 limit.
- Joint accounts are treated as split equally between the holders (unless the bank’s records show otherwise), and each person’s share is added to their other deposits at that bank.
- SRS monies share the same $100,000 limit as your other deposits at that bank. They don’t get a limit of their own.
- CPFIS and CPF Retirement Sum Scheme cash balances are added together and insured separately, up to another $100,000.
So if your SRS account and your main savings account are with the same bank, the cash in both counts towards one limit. Anything you’ve invested through SRS, such as unit trusts or shares, isn’t a deposit and isn’t covered.
DBS and POSB count as one bank
POSB isn’t a separate scheme member. It’s part of DBS Bank, which lists POSB accounts among its own insured deposits.
Because the limit applies per scheme member, $70,000 at DBS and $50,000 at POSB is treated as one $120,000 balance, insured only up to $100,000 in total.
If you’re unsure whether two brands belong to the same bank, check the names on SDIC’s list of DI Scheme members.
Are digital banks covered by SDIC?
Yes, as long as the digital bank is a DI Scheme member, and GXS Bank, MariBank, and Trust Bank all are. Singapore dollar deposits with them get the same $100,000 protection as those at a traditional bank.
Worked Example: What Would Actually Be Covered?
Take Wei Ming, 38, who keeps his savings in a few places:
| Account | Balance | Counts towards |
|---|---|---|
| DBS savings account | $50,000 | DBS Bank limit |
| POSB savings account | $30,000 | DBS Bank limit |
| SRS account with DBS (uninvested cash) | $40,000 | DBS Bank limit |
| GXS savings account | $20,000 | GXS Bank limit |
| USD fixed deposit with DBS | US$20,000 | Not insured |
His DBS, POSB, and SRS balances add up to $120,000 at one bank. So $100,000 is insured and $20,000 isn’t.
His GXS balance is fully covered. The USD fixed deposit isn’t covered at all, because foreign currency deposits fall outside the scheme.
Moving $20,000 to another member bank would bring all his Singapore dollar savings within the limits.
What SDIC Doesn’t Cover
Many places people think of as “safe” aren’t bank deposits, so SDIC deposit insurance doesn’t apply to them. Some have other protection, and some don’t.
| Where your money sits | What to know |
|---|---|
| CPF savings | Guaranteed by the Singapore Government |
| Singapore Savings Bonds, T-bills, and SGS bonds | Backed by the Singapore Government |
| Cash management accounts | Not covered if your money is invested in funds, such as money market funds, rather than held as a bank deposit. Check what the product holds |
| Money market funds, unit trusts, shares, and ETFs | Investment products, so their value can go down |
| E-wallet balances with non-bank payment companies | Not bank deposits, so not covered by SDIC. Check the provider’s terms |
| Foreign currency and structured deposits | Not covered. SDIC views these as closer to investment products than core savings |
QUICK CHECK
Can you answer these three questions?
1) If something happened to you tomorrow, how much would your family receive?
2) At 65, what monthly income will your savings and investments pay you?
3) If you never get round to a will, who inherits what, and in what proportion?
Most people manage one at best. Not because they're careless, but because nobody has shown them which order to tackle things in.
That order exists. Work through your finances in this sequence, from income and protection through to investments and estate planning.
What Happens If a Bank Fails in Singapore?
If a member bank fails, you don’t need to file a claim with SDIC. Payouts are worked out from the failed bank’s own records, and SDIC pays insured depositors directly.
MAS decides whether a payout is made, for example when a court orders the bank to be wound up, or when MAS determines the bank is insolvent or unable to meet its obligations.
Payment is made by PayNow linked to your NRIC or FIN, or by cashier’s order sent to the mailing address the bank has on record. SDIC’s target is to send out most payments within seven working days after MAS activates the payout.
For amounts above $100,000, SDIC submits a claim to the liquidator on your behalf, and the liquidator contacts you about the outcome. Getting that excess back isn’t guaranteed.
How Big Is the Deposit Insurance Fund?
SmartWealth’s review of SDIC’s audited financial statements shows the Deposit Insurance Fund stood at $829.6 million as at 31 March 2026, up from $735.1 million a year earlier.
The fund is built up from premiums paid by scheme members each year, plus interest on the Singapore Government bonds and MAS bills it holds.
The fund also isn’t the only money available. The same statements note that MAS may provide a contingent liquidity facility of up to $20 billion if a scheme member fails and cash is needed for compensation payments. As at 31 March 2026, no request or drawdown had been made on it.
How the SDIC Limit Has Changed Since 2006
The limit has been raised three times since the scheme launched in 2006, and is now five times its starting level.
| From | Coverage per depositor per bank |
|---|---|
| 1 April 2006 | $20,000 |
| 2011 | $50,000 |
| 1 April 2019 | $75,000 |
| 1 April 2024 | $100,000 |
MAS reviews the scheme periodically, and its 2023 proposal to raise the limit to $100,000 came out of one of these reviews. We’ll update this page if the limit changes again.
The Policy Owners’ Protection (PPF) Scheme
The PPF Scheme does for insurance policies what deposit insurance does for bank accounts. If a member insurer fails, your policies are protected up to set limits.
Which insurers and policies are covered
Membership is compulsory for most insurers licensed by MAS to sell life or general insurance directly, though MAS can exempt individual insurers. You can check yours on the PPF Scheme member list.
On the life side, life insurance policies and their riders are generally covered. The scheme also protects some general insurance, including compulsory motor and work injury compensation insurance, and certain personal policies.
PPF caps for life insurance
For individual policies, and group policies you choose to join, life cover is protected up to these caps:
| What’s protected | Cap per life assured per insurer |
|---|---|
| Guaranteed sum assured | $500,000 |
| Guaranteed surrender value | $100,000 |
| Annuities (lump-sum value of guaranteed benefits) | $100,000 |
| Accident and health policies | No cap |
Non-voluntary group policies have separate caps, which apply per policy rather than per life assured.
The caps cover all your policies with one insurer combined. So if one insurer covers your life under three individual life policies with guaranteed sums assured of $300,000, $400,000, and $50,000, that’s $750,000 in total, and only $500,000 is protected if the insurer fails.
Because each insurer has its own caps, cover held with different insurers is assessed separately. That’s one factor to consider if you’re buying a large amount of term life insurance, or a sizeable retirement annuity from a single insurer.
The PPF Scheme protects guaranteed benefits
In my opinion, this is the most important point for policyholders. The PPF Scheme protects what your insurer has guaranteed, not the projected figures in a benefit illustration.
- Participating policies: guaranteed benefits include bonuses that have already been declared and vested. Projected future bonuses aren’t guaranteed, so they aren’t protected.
- Investment-linked policies: benefits tied directly to the value of the underlying funds aren’t covered.
So when you compare whole life plans or endowment plans, look at the guaranteed benefits. Those are what the scheme protects, up to the caps, not the projected totals.
What happens if an insurer fails
If an insurer fails, your policy doesn’t necessarily end. The preferred approach is to transfer the failed insurer’s business to another insurer, since this causes less disruption for policyholders.
If that isn’t possible, MAS may have SDIC take over and run the business, or terminate the policies, with compensation subject to the caps. You don’t need to file any special claim to be covered.
How to Make Sure Your Savings Are Fully Protected
A quick check once a year helps you spot gaps:
- Add up your Singapore dollar deposits by bank, counting SRS cash and treating DBS and POSB as one.
- Consider moving anything above $100,000 to another member bank. This matters most when your emergency fund and savings for a big purchase sit in one place.
- Register PayNow with your NRIC or FIN, and keep your contact details with each bank up to date, as SDIC recommends.
- Add up your guaranteed life cover by insurer, and note anything above $500,000 on one person’s life with a single company.
Should SDIC Matter to You?
In my view, most people will never need to rely on SDIC. MAS sets rules to keep banks well managed, well capitalised, and with enough cash to meet their needs. I’d treat both schemes as a backstop you hope never to use.
Still, the protection costs you nothing, and staying within it often takes no more than one extra bank account.
The people I’d most want to check their balances are those who suddenly hold a large sum in one place, for example after selling a property or receiving an inheritance. Spreading that money across two or three banks takes very little effort.
If you’d like a clearer view of how your savings, investments, and insurance fit together, our guides to insurance planning and personal financial planning are good places to start.
BEFORE YOU GO
Articles can tell you what generally makes sense. They can't see your policies, your CPF, or your plans.
FullCircle is our comprehensive financial planning session. A licensed consultant goes through what you have, shows you the gaps and overlaps, and tells you what to prioritise across protection, retirement, and estate planning.
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