Wednesday, 23 February 2011
Do You Know Your Bank Deposits Are Insured Up to $20,000 Limit?
Under the Deposit Insurance Scheme your bank savings/fixed deposits accounts with Singapore financial institutions are protected up to $20,000 Limit. When the 2009 Financial Crisis imploded the Government stepped forward and guaranteed all deposits accounts without imposing any limit. This guarantee lapsed w.e.f. 1.1.2011. Subsequently the Monetary Authority of Singapore proposed to increase the limit to $50,000 to protect the wider spectrum of depositors. This proposal is still in the works. This information was offered to me after I wrote to the Singapore Deposit Insurance Corporation Ltd(a Unit of MAS) on 8 Feb 2011. I was concerned then that our financial institutions in their Chinese New Year's promotions in the newspaper advertisements were targetting fixed deposits of $50,000 to entice depositors who wanted to earn higher returns. Indirectly the financial institutions were saying the protection limit is now $50,000 when it is not the case. On 9 Feb 2011 I wrote back to SDIC to request them to expedite on the matter of increasing the insurance limit to $50,000. To-date I am still waiting for their reply.