🏦 BanksWhat is the Deposit Insurance Scheme and what does it protect?
Bangladesh has had a deposit insurance scheme since the Bank Deposit Insurance Ordinance of 1984, now run by Bangladesh Bank under a dedicated fund. It pays depositors if a scheduled bank is wound up. The 2025 Deposit Protection Ordinance doubled the cover to Tk 2 lakh (Tk 200,000) per depositor, per bank, which Bangladesh Bank says fully covers about 93% of depositors. Cover is automatic and free. This article covers what is protected, what is not, and what to do if you hold larger amounts.
What is covered and how much
The scheme covers money in savings, current and fixed deposit accounts held with a scheduled bank (conventional or Islamic). The limit is Tk 2 lakh per depositor, per bank: all your deposits at one bank are added together and covered up to Tk 2 lakh in total, not per account. Foreign-currency deposits are included, converted to taka for the limit.
Non-bank financial institutions (NBFIs) — leasing and finance companies — are covered by a separate fund, not the bank scheme. Cooperatives and NGO microfinance are not covered at all.
What the scheme does not protect
Investments — mutual funds, shares, bonds, debentures — are not deposits and are outside the scheme. So is money with a cooperative society, an NGO, or any unlicensed 'scheme' promising a high return. Their value or safety is a normal risk the guarantee does not touch.
The scheme also does not protect you against low interest or inflation, and it only pays out if a bank is actually liquidated — which is rare and can be slow. So the strength of the bank still matters for a large balance, even though the Tk 2 lakh is guaranteed.
If you hold large amounts
If you hold more than Tk 2 lakh at one bank, only the first Tk 2 lakh is guaranteed if that bank fails. You can spread deposits across several scheduled banks to keep each within the limit. For a very large sum, weigh the bank's financial strength and consider government instruments (National Savings Certificates, Treasury bonds) which carry the sovereign rather than a single bank.
Be especially wary of very high fixed-deposit rates from a weak bank or an NBFI — the extra yield is compensation for extra risk, and the guarantee still stops at Tk 2 lakh.
Frequently Asked Questions
- How much does the Deposit Insurance Scheme cover?
- Up to Tk 2 lakh (Tk 200,000) per depositor, per bank — doubled from Tk 1 lakh under the 2025 Deposit Protection Ordinance. Bangladesh Bank says this fully covers about 93% of depositors. Foreign-currency deposits count, converted to taka.
- Does the limit apply per account or per person?
- Per depositor, per bank. All your accounts at the same bank are added together and covered up to Tk 2 lakh in total, not per account. Spreading money across several scheduled banks is how you cover a larger sum.
- Are my mutual funds or a cooperative deposit covered?
- No. Mutual funds, shares and bonds are investments, not deposits. Cooperatives and NGO microfinance are outside the scheme entirely. Only savings, current and fixed deposits at a scheduled bank are covered; NBFIs have a separate fund.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (Bangladesh Bank, the National Board of Revenue, the BSEC, the Deposit Insurance Scheme) before making a decision.
