Singapore Savings Account Depositors Protected

Singapore Savings Account Depositors Protected

In The Straits Times published 23 September 2008, Ms Angelina Fernandez, Director (Communications) of the Monetary Authority of Singapore (MAS) assured Singapore savings account depositors that their savings in their Singapore savings accounts are protected.

Here is a quote from the MAS letter for Singapore Savings Account Rates readers:

"Under the deposit insurance scheme, administered by the Singapore Deposit Insurance Corporation (SDIC), an individual's Singapore dollar current, savings and fixed deposit accounts with a full bank or finance company in Singapore have an aggregate coverage of up to $20,000 per institution. This coverage fully insures more than 80 per cent of individual depositors in Singapore and is within international norms of 80 to 90 per cent."

Does this mean your $20000 in a Singapore savings account is totally safe? How about the robustness of the Singapore Deposit Insurance Corporation (SDIC) which is also an insurance company? Given that even a huge insurance company like AIG has also buckled under financial strain, how is a depositor to know if this SDIC will not buckle?

You may want to refer to SDIC at their website for details on their structure and board members for some reassurance. The Singapore Deposit Insurance Corporation (SDIC) administers the Deposit Insurance Scheme in Singapore. It has a 6-member board and they are accountable to the Minister in charge of MAS. SDIC collects premiums from participating banks annually to maintain a fund that will be used to compensate depositors if required.

Read more at SDIC site.

More information at Monetary Authority of Singapore (MAS).

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