Personal Finance
Why does SDIC only guarantee $50,000 of your deposits?
By The Asia Report  •  December 20, 2018
I frequent the BIGS World – Build Wealth, Live a Good Life Facebook group and came across a really great question. Namely – Why is SDIC protection so low ($50,000 SGD) in Singapore? Especially compared to US banks which protects deposit up to $250,000 USD. Singapore Deposit Insurance Corporation or SDIC is the government-chartered organization which oversees Singapore banks’ Deposit insurance program which protects bank deposits up to $50,000. The US equivalent is the FDIC, which protects bank deposits up to $250,000 USD. John Lam who used to work in the Balance Sheet and Liquidity Management team of an American Bank gave this great answer which I had to share:
Good question. But it is also important to note that there is a cost to this insurance. Currently the premiums are paid by the member banks and it doesn’t impact depositors directly. But this is still a part of the banks’ operating expense ...
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By The Asia Report
Richard is passionate about teaching the principles of value investing to people from all walks of life. Richard is also a frequent guest speaker on investing and financial markets at institutions such as University College London and the London School of Economics, and at investment conferences held in Singapore ...
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