By: Patrick Lim Over these past couple of weeks amidst the current global financial crisis, I have been asked over and over again whether monies placed in our financial institutions (both local and foreign) are safe? On this, I was not really surprised many consumers are still unaware of the deposit insurance scheme which came into effect on April 01, 2006. Briefly, here are some details of the deposit insurance scheme: The deposit insurance scheme will compensate individuals and charities for the first $20,000 of their Singapore dollar deposits in standard savings, current and fixed deposit accounts, net of liabilities, in the event that their bank or finance company fails. The scheme compensates depositors through a fund built up from contributions by full banks and finance companies. Full banks and finance companies will pay their first premium contributions into the fund on 3 April 2006. SDIC, a separate entity incorporated as a company limited by guarantee under the Companies Act, will administer the deposit insurance scheme and manage the deposit insurance fund. But please do take note that the deposit insurance scheme will only compensate individuals and charities up to the first $20,000 of Singapore dollar deposits in standard savings, current and fixed deposit accounts, net of liabilities only. In other words, anything outside of these specified accounts are not covered under the deposit insurance scheme. And the other query is on the regulation of foreign banks in Singapore and MAS has responded: Read more...