FAQ > Security and risk

What is a national deposit guarantee scheme?


Deposit insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a financial system safety net that promotes financial stability. Information about the coverage, by the deposit guarantee scheme, of a particular term deposit with us can always be found in the term deposit details. Additionally, your Deposit Planet account will guide you to what extent your deposit portfolio and which particular term deposits are protected. Choose the country below to learn more who is responsible for the deposit guarantee scheme in a particular country, how much of a term deposit is protected and how long you will need to wait for compensation, should it be necessary.

Select a country to learn more about its deposit guarantee scheme

Who protects term deposits?

The national organisation responsible for running the deposit protection scheme is the The Australian Government's Financial Claims Scheme (FCS) which was established by the Australian Parliament in 2008. The FCS can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the FCS will be administered by the Australian Prudential Regulation Authority (APRA).

How much is protected?

Under the FCS, deposits are protected up to a limit of A$250,000 ($175,000) for each account holder at each bank, building society or credit union incorporated in Australia and licenced by Australian Prudential Regulation Authority (APRA).

How long will I need to wait for compensation?

When FCS is activated by the Australian Government, Australian Prudential Regulation Authority (APRA) would endeavour to make payments under the Scheme to the majority of account holders within seven calendar days. Payments in some circumstances may take longer.

Who protects term deposits?

The national organisation responsible for running the deposit protection scheme is the Azerbaijan Deposit Insurance Fund which was founded on 12th August 2007. It is regulated by the Trustee Board and by the Executive Director based on the Law on Deposit Insurance.

How much is protected?

In accordance with Article 3 of the Law of the Republic of Azerbaijan on Full Deposit Insurance, which came into force on 2nd March 2016, all protected deposits, the interest of which is within the annual interest rate established in national and foreign currencies, irrespective of the amount are subject to full insurance for a period of for three years by the participating banks of the Fund.

How long will I need to wait for compensation?

In the case of an insurance incident in a participating bank the Financial Market Supervisory Authority sends a notification to the Fund. On receipt of the notification the Fund shall within seven calendar days publish an announcement in the media on the time and venue of compensation payments. The Fund shall pay compensation no later than 90 calendar days from the date the depositor's application was received. In exceptional cases, the Fund may prolong the period of payment of compensation for up to 90 calendar days, if so, decided by the Board of Custodians.

Cambodia has yet to establish any deposit insurance scheme, but to help protect depositors, the National Bank of Cambodia (NBC) has imposed a capital guarantee on banking and financial institutions. Commercial banks and specialised banks must permanently deposit 10 per cent of their registered capital with the NBC as capital guarantee.

Another depositors protection tool is that the NBC demands a commercial bank to maintain, with the NBC, reserve requirements against deposits and borrowings at a daily average balance equal to 8 per cent in riel and 12.5 per cent in foreign currencies.

The NBC also imposes reserve requirements against borrowing funds, namely 8 per cent and 12.5 per cent applicable on borrowing funds derived from local and foreign currencies, respectively.

Who protects term deposits?

The national organisation responsible for running the deposit protection scheme is the Deposit Insurance Agency, which was established on 24th July 2017 in accordance with the Law of Georgia on Deposit Insurance System. The main function of the Agency is to insure deposits of resident and non-resident individuals in all commercial banks operating in Georgia. The Agency is supervised by the Supervisory Board comprised of the Minister of Finance, the Minister of Economy and Sustainable Development, the President of the National Bank of Georgia and two independent members selected by commercial banks.

How much is protected?

Currently the insurance limit is GEL 5,000 ($1,500) for deposits placed in any currency. This limit, set with consideration of the local economic situation and international practice, will be revisited and gradually increased. All types of deposits of resident and non-resident individuals, including current accounts and deposits are insured.

How long will I need to wait for compensation?

In the event of the commencement of liquidation, insolvency or bankruptcy proceedings in any of the banks, according to the Law of Georgia on Activities of Commercial Bank, the Deposit Insurance Agency will ensure reimbursement of deposits to depositors in the amount of the set limit within 20 calendar days.

Who protects term deposits?

The national organisation responsible for running the deposit protection scheme is the Deposit Insurance and Credit Guarantee Corporation, which is a subsidiary of the Reserve Bank of India. It was established on 15th July 1978 under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities.

How much is protected?

Currently a maximum of Rs. 100,000 ($1,400) is insured for each user for both principal and interest amount. If the customer has accounts in different banks, all of those accounts are insured to a maximum of Rs. 100,000. However, if there are multiple accounts in the same bank, all of those are treated as a single account.

How long will I need to wait for compensation?

Under the provisions of Section 17(1) of the DICGC Act, the liquidator of an insured bank which has been wound up or taken into liquidation has to submit to the DICGC a list showing separately the amount of the deposit in respect of each depositor and the amount set off, in such a manner as may be specified by the DICGC and certified to be correct by the liquidator, within three months from the date of his assuming charge of office. The DICGC is required to pay the amount payable under the provisions of the Act in respect of the deposits of each depositor within two months from the date of receipt of such lists.

Who protects term deposits?

The national organisation responsible for running the deposit protection scheme is the Kazakhstan Deposit Insurance Fund. It was established with a view to building confidence in the Kazakhstani banking system as a framework of protection of bank deposits of the general public. KDIF was established by the National Bank of the Republic of Kazakhstan Management Board Resolution No. 393 dated 15th November 1999. Regarding incorporation of ZAO Kazakhstan Individuals Deposit Guarantee (Insurance) Fund.

How much is protected?

Currently on the per-depositor-per-bank basis, the maximum deposit coverage limit for all deposits and bank accounts of individuals shall amount to: - Savings deposits in the national currency: 15 million tenge ($40,000). - Deposits in any foreign currency: 5 million tenge ($13,500). Should a depositor have two or more deposits with the same bank in both national and in foreign currency (currencies?), the depositor shall be reimbursed in the total amount up to 15 million tenge ($40,000).

How long will I need to wait for compensation?

The agent bank shall accomplish processing the depositor’s claim within five working days from the date of submission of all the required documents affirming the depositor’s rights to claim reimbursement. All depositors should be reimbursed within 30 days following the court resolution governing the forced liquidation of a bank.

New Zealand is currently the only OECD country without any sort of deposit insurance scheme. The main argument against deposit insurance is that it may weaken market disciplines. In New Zealand, the Government and the Reserve Bank have established the Open Bank Resolution (OBR) tool to try to buttress the “no bailouts” message. The OBR is designed to ensure that a bank can be reopened immediately after it fails (thus keeping basic payments services going).

Who protects term deposits?

The national organisation responsible for running the deposit protection scheme is the Deposit Insurance Agency (DIA), which is a Russian state corporation providing deposit insurance in the Russian Federation. Its headquarters are located in Moscow. The DIA was established in January 2004 on the basis of the Federal law on the Insurance of Household Deposits in Banks of the Russian Federation # 177-FZ dated 23rd December 2003.

How much is protected?

Currently a maximum of RUB 1,400 000 ($21,000) is insured for each user for both principal and interest amount. If the customer has accounts in different banks, all of those accounts are insured to a maximum of RUB 1,400 000 ($21,000). However, if there are multiple accounts in the same bank, all of those are treated as a single account.

How long will I need to wait for compensation?

The agent bank shall accomplish processing the depositor’s claim within 14 working days from the date of the submission of all the required documents affirming the depositor’s rights to claim reimbursement.

At this moment there is no deposit insurance in South Africa. Although, this is currently being reviewed by the South African Reserve Bank.


What risks are involved in term deposits?

Investing in a term deposit usually involves limited risk because deposit products are secured against the folding of a credit institution by national deposit guarantee schemes.

Will my investment be at risk from currency fluctuations?

Definitely not. Our mission is to become an oasis for anyone who wants to receive predictable returns without unpredictable risk

Are all the banks secure?

We work with banks thich have a long history on the local market, employ a significant number of people, have a strong capital base and stable future prospects.

What happens if a bank folds?

Learn how we try to avoid such events and how we help you if they do happen.

What happens if Deposit Planet folds?

You are the legal owner of money invested in your term deposits, therefore in an unlike event Deposit Planet folding your money will be fully protected by banks keeping your deposits.

What does the credit rating mean?

Learn how the information about credit rating can help you to decide where to securely placed your money.