FAQs

What is a deposit?
Deposit in this context means monies lodged by the general public with any insured bank

or financial institution whether or not it is for safe-keeping or for the purpose of earning interest or dividend, whether or not such monies are repayable upon demand, upon a given period of notice or upon a fixed date.

2. What is the depositors' responsibility?
Depositors are ultimately responsible for the choices they make about where to deposit their funds. The gains or losses resulting from your choice about where to put your money and in what kinds of accounts are yours. It is therefore very important that you take great care in exercising that choice and select a well-managed institution in which to deposit your funds.

3. Which institutions are not insured by DPB?
Currently these include Asset Management Firms, Stock Brokers, Micro finance and Life Assurance Companies.

4. Do I have to pay insurance premiums?
No. Each deposit taking institution (policyholder) will contribute to the Deposit Protection Fund through quarterly premiums.

5. Can I increase my coverage by depositing my monies in several banks?
Yes. Deposits by the same depositor in different institutions are insured separately and therefore enjoy coverage of US$150.00 per depositor. However, to gain this additional protection, deposits must be held in separate institutions and not different branches of the same institutions.

6. Can I increase my coverage by dividing my monies and opening several accounts?
That depends. You cannot increase coverage by dividing your monies among several accounts in the same ownership category. The most common ownership categories are Individual, Joint, Business and Trust Accounts.

7. Do I have to prove ownership of my deposits?
The DPB pays claims based on the information available on the records of the failed institution. However, in certain circumstances, you may be required to provide proof of deposit ownership, such as your passbook, Certificate of Deposit and submit to signature verification.

8. If my bank fails will I get back all my deposits?
Yes. So long as your deposits are within the limit of insurance coverage which is currently US$150.00 (interest and principal combined). Eligible depositors, who hold deposits of US$150.00 or less, will be paid in full.

9. Do I lose uninsured amounts over the cover limit?
Not necessarily. DPB will provide the liquidator with records indicating the amount you claimed, the amount paid to you, and the portion of the deposits not insured. These records are what the liquidator uses for making payments to depositors as and when the failed institution’s assets are available for distribution.

10. What is a joint account?
A joint account is owned by two or more persons in which:

* Each co-owner has signed the account’s signature card.

* Each co-owner may withdraw monies from the account.

11. How are joint accounts insured?
Joint accounts are insured separately from individual accounts. The maximum coverage for all deposits having the same joint owners at each institution covered by the Scheme is US$150.00 (collectively, not per individual owner). Each person’s share in a joint account will be considered equal unless stated otherwise on the deposit records.

12. How are business accounts insured?
Funds deposited by a company, partnership or association are insured up to a maximum of US$150.00. Business accounts are insured separately from the personal accounts of its shareholders, partners or members. Accounts owned by a business but designated for different purposes are not separately insured. These will be added together and insured up to a maximum of US$150.00. In the case of a sole proprietorship, the business is individually owned and as such, its account will be treated as an individual one will be added to his business account and insured up to a maximum of US$150.00.

13. How are trust accounts insured?
Deposits held in trust are insured separately from deposits owned individually by the trustee or the beneficiary provided that the records of the institutions:

* State that the deposit is held in trust;

* Identify the name and address of the trustee (s) and

* Identify the name and address of the beneficiary or beneficiaries.

At each institution, all eligible deposits having both the same trustee and the same beneficiary are combined and the total is insured to a maximum of US$150.00.

14. If a person has an interest in more than one joint account, what is the extent of his or her insurance coverage?
All Joint Accounts owned by the same combination of individuals are first added together and the total is insurable up to US$150.00. Then the Person's insurable interest in each Joint Account owned by different combinations of individuals are added together and the total is insured up to the US$150.00 maximum.

15. Are accounts held by a person as executor, administrator, guardian, custodian, or in some fiduciary capacity insured separately from his or her individual accounts?
Yes. If the records of the bank indicate that the person deposited the funds in fiduciary capacity such funds are insured separately from the fiduciary's individually-owned account. Funds in an account held by an Executor or Administrator are insured as funds of the (deceased's) estate. Funds in accounts held by guardians , conservators or custodians (whether court-appointed or not )are insured as funds owned by the ward and are added to any individual accounts of the ward in determining the US$150.00 maximum.(Accounts in which the funds are intended to pass on the death of the owner to a named beneficiary, are considered testamentary accounts and are insured as a form of individual account . If the beneficiary is a spouse, child or grandchild of the owner , the funds are insured for each owner up to a total of US$150.00 separately from any other individual accounts of the owner. If the beneficiary is other than a spouse, child or grandchild of the owner, the funds in the account are added to any other individual account of the owner and insured to a total of US$150.00. In the case of a Revocable Trust Account, the person who holds the power of revocation is considered the owner of the funds in the account.)

16. When an account is held by a person designated as agent for the true owner of the funds, how is the account insured?
The account is insured as an account of the principal or true owner. The funds in the account are added to any other accounts owned by the owner and the total is insured to the maximum of US$150.00