Bank Deposits Protected

Bank Deposits Protected

In today's The Straits Times, it was reported that MAS plans to raise the limit on bank deposits protection in Singapore.

Currently, all sums in bank deposits in Singapore are protected and guaranteed until end December 2010. Once the guarantee ends, the previous rule that protects bank deposits of up to S$20,000 will be back in place.

With the additional coverage of bank deposit protection, the cost to banks will be raised. Will this cost be passed on to depositors? No one is saying that it will happen, but logically banks, as commercial entities, will not absorb the extra cost without thinking of ways to recoup it.

The other thing which came out of this report is that there is no word that the unlimited bank deposit guarantee will continue after 2010.

With the impending end of unlimited bank deposit protection after 2010, savers and investors should consider deploying their savings and fixed deposits with that in mind.

Thanks for reading our little insight on Singapore Savings Account Rates today.