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How Safe Is Our Money In Foreign Banks

Yeobt

By Yeobt,
in Investment & Financial Matters

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Yeobt

Yeobt

Supercharged

Hi, my family have some saving with the foreign banks in sgp like Citibank, Standchart and etc. As you know, the current covid19 situation in these foreign countries are pretty serious. In facts, this pandemic is impacted the world economy and many big corporate names could be fallen. I dont know how bad could this pandemic goes around affecting the market becos I'm not an economist. But I knew that oversea banks are not bullet-proof too and they could also be collapsed which indeed it happened in other countries before. Not forgetting that the worst is yet to come. 

Do you think depositors like us with money in foreign banks are protected in Sgp?

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sti2020

sti2020

2nd Gear
38 minutes ago, Yeobt said:

Hi, my family have some saving with the foreign banks in sgp like Citibank, Standchart and etc. As you know, the current covid19 situation in these foreign countries are pretty serious. In facts, this pandemic is impacted the world economy and many big corporate names could be fallen. I dont know how bad could this pandemic goes around affecting the market becos I'm not an economist. But I knew that oversea banks are not bullet-proof too and they could also be collapsed which indeed it happened in other countries before. Not forgetting that the worst is yet to come. 

Do you think depositors like us with money in foreign banks are protected in Sgp?

withdraw and put in biscuit tin !

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Albeniz

Albeniz

Turbocharged
(edited)
1 hour ago, Windwaver said:

SGD$75K loh

Per bank, not per account hor.

 

Be careful of that clause.  I think it has been misinterpreted by many people.

In layman terms, the liability works as follows:

People who deposited 1 million in the bank, the bank will pay up to $75k for this group.

People who deposited $75k in the bank, they will probably only pay a fraction of $75k.

 

 

 

 

Edited by Albeniz
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Cheesey74

Cheesey74

6th Gear
1 minute ago, Albeniz said:

Be careful of that clause.  It has been misinterpreted by many people.

In layman terms, the liability works as follows:

People who deposited 1 million in the bank, the bank will pay up to $75k for this group.

People who deposited $75k in the bank, they will probably only pay a fraction of $75k.

 

 

 

 

Wow... seriously so? ==> "People who deposited $75k in the bank, they will probably only pay a fraction of $75k."

 

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Rickster

Rickster

5th Gear
15 minutes ago, Albeniz said:

Be careful of that clause.  I think it has been misinterpreted by many people.

In layman terms, the liability works as follows:

People who deposited 1 million in the bank, the bank will pay up to $75k for this group.

People who deposited $75k in the bank, they will probably only pay a fraction of $75k. 

 

 

 

 

Does that mean like its only 7.5% secured??

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Albeniz

Albeniz

Turbocharged
(edited)
8 minutes ago, Rickster said:

Does that mean like its only 7.5% secured??

No, my numbers are just for illustration only.  I believe the liability is "up to" 75k.  If there are 2 groups of people: 1 who have deposited 1 million (for example) while the other only 75k,  chances are the former group are more likely to be compensated up to that 75k which have been promised.

I stand corrected.

Edited by Albeniz
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Jamesc

Jamesc

Hypersonic

I never trust banks.

I hope they all go bust.

Then I don't have to pay them back.

:grin:

I only have loans and not deposits.

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Lala81

Lala81

Hypersonic
1 hour ago, Yeobt said:

Hi, my family have some saving with the foreign banks in sgp like Citibank, Standchart and etc. As you know, the current covid19 situation in these foreign countries are pretty serious. In facts, this pandemic is impacted the world economy and many big corporate names could be fallen. I dont know how bad could this pandemic goes around affecting the market becos I'm not an economist. But I knew that oversea banks are not bullet-proof too and they could also be collapsed which indeed it happened in other countries before. Not forgetting that the worst is yet to come. 

Do you think depositors like us with money in foreign banks are protected in Sgp?

If u feel so insecure. Then choose a local bank.

Generally speaking, the financial insitutions are not likely the weak link in this economic crisis (due to the regulations imposed on them in 2008). 

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Lala81

Lala81

Hypersonic
5 minutes ago, Albeniz said:

No, my numbers are just for illustration only.  I believe the liability is "up to" 75k.  If there are 2 groups of people: 1 who have deposited 1 million (for example) while the other only 75k,  chances are the former group are more likely to be compensated up to that 75k which have been promised.

I stand corrected.

Quote

 

Deposit Insurance Payout

Conditions for payout

MAS may decide that a deposit insurance payout should be made if:

A court order has been made to wind up a DI Scheme member; or 

MAS has determined that a DI Scheme member is insolvent, unable or likely to become unable to meet its obligations, or about to suspend payments.

Announcement of payout

If a DI Scheme member fails, all depositors entitled to receive compensation from SDIC under the DI Scheme will be notified. Depositors do not need to file claims with SDIC as payouts will be computed based on the records of the failed DI Scheme member.

SDIC will also make official announcements in the Government Gazette, through mass media such as newspapers, television, radio and SDIC’s website. 

SDIC will pay depositors entitled to compensation as soon as possible. Payment may be made by cheques, cashier’s orders or by electronic payment methods.

If the compensation you receive from SDIC is less than your total amount of deposits with the failed DI Scheme member, SDIC will submit a claim on your behalf to the liquidator of the failed DI Scheme member for the difference.

 

https://www.sdic.org.sg/public/di_payout

Hard to say what really happens if it happens. 

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Jamesc

Jamesc

Hypersonic
(edited)

Put it in the World's Strongest Bank lah.

Disclaimer: Please consult your own financial advisor to take into account your financial needs, objectives and situation.

I am not a financial advisor. I am massage expert advisor.

:grin:

 

Edited by Jamesc
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Weez911

Weez911

Supersonic

Not all banks in Singapore participate in the SDIC. Check this list of DI Scheme Members. https://www.sdic.org.sg/sm_list/di_scheme_members

Also. the DI limit of S$75,000 is applied on a per depositor per Scheme member basis. This means that your deposits will be covered up to S$75,000 for each bank. https://www.sdic.org.sg/faq/di_faq

For calculation of compensation: https://www.sdic.org.sg/calc/di_calc

 

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Windwaver

Windwaver

Turbocharged
1 hour ago, Albeniz said:

Be careful of that clause.  I think it has been misinterpreted by many people.

In layman terms, the liability works as follows:

People who deposited 1 million in the bank, the bank will pay up to $75k for this group.

People who deposited $75k in the bank, they will probably only pay a fraction of $75k.

 

You're right, sorry man, I'm having a lot of fun on the other thread with 'pubic buses' :grin:

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Angcheek

Angcheek

Hypersonic
1 hour ago, Jamesc said:

I never trust banks.

I hope they all go bust.

Then I don't have to pay them back.

:grin:

I only have loans and not deposits.

Cannot run away one  ... ur MIL will buy over ur mortgage and hold u ransom 😂

 

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Angcheek

Angcheek

Hypersonic
4 hours ago, Yeobt said:

Hi, my family have some saving with the foreign banks in sgp like Citibank, Standchart and etc. As you know, the current covid19 situation in these foreign countries are pretty serious. In facts, this pandemic is impacted the world economy and many big corporate names could be fallen. I dont know how bad could this pandemic goes around affecting the market becos I'm not an economist. But I knew that oversea banks are not bullet-proof too and they could also be collapsed which indeed it happened in other countries before. Not forgetting that the worst is yet to come. 

Do you think depositors like us with money in foreign banks are protected in Sgp?

my own view ....... as long as not "high risk" bank .  Citi / SC banks got powerful backing . So less unlikely to fall . (but hor , just heard Citi revenue drop alot )  

There are also news global banking system under pressure ( will crack or not , dont know)  If Citi/SC can close shop , I think most will not survive either . 

 

 

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Jamesc

Jamesc

Hypersonic
1 hour ago, Angcheek said:

Cannot run away one  ... ur MIL will buy over ur mortgage and hold u ransom 😂

 

I have been saving up a lot of money for when she needs to go away.

:grin:

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