A Deposit Insurance (DI) Fund has been established from premium contributions of DI Scheme members to pay compensation to insured depositors in the event of a failure of a Scheme member. The DI Fund can only be invested in safe and liquid assets such as securities issued by the Singapore Government or MAS, deposits with MAS, any debenture or debt security issued by Singapore Sukuk Pte. Ltd., and other assets approved by the Minister.
DI Scheme members pay premium contributions to the DI Fund annually. The premiums levied on member institutions are differentiated according to the risk they pose to the DI Fund. These risk-based premiums are charged to member institutions as a percentage of the amount of insured deposits they hold, subject to a minimum annual premium of $2,500. SDIC may impose late payment fees on DI Scheme members. The premium rates and calculation of premium contributions payable by DI Scheme members are set out in the Deposit Insurance and Policy Owners’ Protection Schemes (Deposit Insurance) Regulations 2011.