Deposit Protection: What Hong Kong's HK$800,000 and Singapore's S$100,000 Cover, and What They Don't

Deposit protection is a statutory arrangement under which, if a bank fails, depositors are compensated for eligible deposits up to a set limit. In Hong Kong it takes the form of the Deposit Protection Scheme (DPS), administered by the Hong Kong Deposit Protection Board (HKDPB). Since 1 Oct 2024 the limit has been HK$800,000 per depositor per member bank, and both Hong Kong-dollar and foreign-currency deposits are covered. It is a separate system from investor compensation and from the protection of insurance policyholders: deposit protection covers "deposits" only and does not protect investment products against falls in price.

This page applies to Hong Kong (on the Deposit Protection Board's terms), with Singapore for comparison.

The limit and how it is calculated: what HK$800,000 means

On 3 Jul 2024 the Hong Kong SAR Government announced that the Legislative Council had passed the Deposit Protection Scheme (Amendment) Bill 2024. On 1 Oct 2024 the HKMA announced that the first phase of enhancements had taken effect: the limit rose from HK$500,000 to HK$800,000 per depositor per bank, and the negative disclosure requirements for private banking customers entering into non-protected deposit transactions were streamlined. The second phase, including transitional protection after bank mergers, took effect on 1 Jan 2025.

According to the Deposit Protection Board's website (checked 24 Oct 2026), the calculation works as follows:

The limit is "per bank", not "per account". Savings, current and time deposit accounts at the same bank are capped together at HK$800,000; deposits at different member banks are calculated separately.

What is protected and what is not

The Deposit Protection Board's "Features of DPS" page and the Investor and Financial Education Council (IFEC) page set out the scope and exclusions as follows:

A few common misunderstandings:

1. A structured deposit has "deposit" in its name but is not protected: its return is linked to exchange rates, share prices or similar, and the principal can be lost;
2. "Held at a Hong Kong bank" does not mean "protected in Hong Kong": if the bank books the deposit at its Mainland or overseas branch, it is an offshore deposit;
3. Funds, bonds and insurance sold by a bank are not deposits: even if they appear in the same integrated wealth account, they are outside the scheme;
4. An e-wallet balance is not a bank deposit: stored value facilities fall under a separate regulatory regime.

Members: which banks are covered

Authorized institutions in Hong Kong fall into three tiers: licensed banks, restricted licence banks and deposit-taking companies. According to the IFEC, all licensed banks in Hong Kong are members of the Deposit Protection Scheme unless exempted; deposits with restricted licence banks and deposit-taking companies are not protected by the scheme.

The Board requires member banks to display the membership sign prominently at their places of business and a simplified version on their e-banking platforms. Virtual banks are licensed banks too; readers can look for the membership sign in the app or on the website, with the Board's member list as the definitive reference. Institution tiers and the main banks' account tiers are covered in Major banks and account tiers.

Foreign-currency deposits: protected in Hong Kong, not in Singapore

Foreign-currency deposits are where the two systems differ most. Hong Kong's scheme expressly covers HKD, RMB and other foreign-currency deposits, converting them into Hong Kong dollars for compensation. The FAQ of the Singapore Deposit Insurance Corporation (SDIC) states that the deposit insurance scheme does not cover foreign-currency deposits, nor structured deposits or investment products such as unit trusts and shares.

For Singapore's treatment of joint and trust accounts, SRS and CPF monies, membership and payout arrangements, see bankaccount.sg on deposit insurance.

For cross-border families holding Hong Kong dollars, US dollars, renminbi and Singapore dollars, this means the same US-dollar time deposit is protected by the DPS (subject to the limit) at a Hong Kong licensed bank but falls outside SDIC cover at a Singapore bank. This is a feature of the schemes, not a judgement that banks in either place are safer; a bank's soundness depends on supervision and its own capital position.

Joint accounts, multiple banks and large deposits

Joint accounts: the Board's FAQ explains that joint account holders are generally treated as owning the deposit in equal shares, and each holder can receive up to HK$800,000. Under the principle of aggregating each depositor's deposits at each bank, how a person's share of a joint account combines with their personal accounts is governed by the Board's rules and the Deposit Protection Scheme Ordinance. The idea that "a joint account doubles the cover" is not accurate; what counts is each person's total deposits at that bank.

Multiple banks: the limit applies per member bank. Readers with more than HK$800,000 on deposit commonly start by understanding how much of their balance is protected at each bank and then arrange deposits around their liquidity needs, rather than opening several accounts at one bank. The Board's FAQ states that each separate legal entity is protected up to HK$800,000; whether different brands within the same banking group are separate legal entities, and which transitional arrangement applies to a merged bank, should be checked against the Board's member list and merger arrangements.

Amounts above the limit: deposits above the limit are not necessarily lost; they are dealt with through the liquidation process if the bank is wound up, and the outcome cannot be known in advance. Nor is deposit protection the only criterion for choosing a bank: account fees, service and accessibility matter as well (see Major banks and account tiers).

This site does not advise on how much to place where. Arrangements involving large sums should take account of liquidity, tax and cross-border rules, with professional advice.

The Singapore comparison and practical points

Singapore's SDIC rules can be summed up as "Singapore dollars, S$100,000, aggregated": each depositor's Singapore-dollar deposits at each member institution are protected up to S$100,000 in total, and foreign-currency and structured deposits are not covered (SDIC FAQ). The remaining details are on the deposit insurance page of the sister site bankaccount.sg.

Practical points common to both places:

1. When opening an account, confirm that the bank is a member of the deposit protection or deposit insurance scheme and look for the sign the bank displays;
2. Before buying any product with "deposit" in its name, check whether it is a structured deposit;
3. Protection is calculated per person per bank, not per account;
4. Foreign-currency deposits are protected in Hong Kong but not by SDIC in Singapore;
5. Investment products, insurance policies and e-wallet balances are outside deposit protection.

For the full comparison see Hong Kong vs Singapore account opening. If you would like this interpreted for your own circumstances, you can register your needs through the contact details on this site.