🏦 BanksWhat is the Deposit Insurance Corporation and what does it protect?
The Deposit Insurance Corporation of The Bahamas (DIC) has protected depositors since 1999, under the Protection of Depositors Act. It guarantees your Bahamian-dollar money on deposit if a member bank — one of the domestic clearing banks incorporated in The Bahamas — fails. It is a statutory body, funded by premiums the banks pay. Cover is up to $50,000 per depositor, per bank, it is automatic (you do not opt in). In this article we go through exactly what is covered, how the limit works, and what to consider if you hold large amounts.
What is covered and how much
The scheme covers Bahamian-dollar money in savings accounts, chequing accounts, fixed deposits and most other deposit accounts held with a member bank. The limit is $50,000 per depositor, per bank — several accounts you hold in your own name at the same bank are added together and covered as one, up to the limit.
Your share of a joint account is added to your own personal deposits at that bank for the limit. Foreign-currency deposits and deposits in the international (offshore) banks are not covered by the DIC. Cover is automatic — you do not need to register.
What the scheme does not protect
Investments such as unit trusts, mutual funds, shares and bonds are not deposits and are not covered by the DIC. Their value can rise and fall with the market, and that is a normal risk, not something a guarantee scheme covers. Money in a credit union, in an international (offshore) bank, or in foreign currency is also outside the scheme.
DIC also does not protect you against low interest, against inflation, or against losing money on an investment. It applies only to the scenario where a member deposit-taking institution itself fails.
If you hold large amounts
If you hold more than $50,000 on deposit at one bank you can spread the money across several member banks to stay under the limit at each. The DIC and the Central Bank publish the list of member banks.
Because DIC covers deposits and not investments, if a firm offers you a high 'return' that is actually an investment product, check whether the money would sit in an insured deposit or in something outside the scheme before you commit.
Frequently Asked Questions
- How much does DIC cover?
- Up to $50,000 per depositor, per member bank, for Bahamian-dollar deposits. That covers most personal deposit accounts in full. Foreign-currency deposits and deposits in the international banks are not covered.
- Does the limit apply per account or per person?
- Per depositor and per bank. Several personal accounts at the same bank are added together and treated as one, up to $50,000. Your share of a joint account is added to your own personal deposits at that bank.
- Is my unit trust or repo covered by DIC?
- No. Unit trusts, mutual funds, shares and bonds are investments, not deposits, so they are outside the DIC. They carry market risk. Only Bahamian-dollar money in a deposit account at a member bank is covered — credit unions and the international banks are not in the scheme.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (the National Insurance Board, the Central Bank of The Bahamas, Tax Administration The Bahamas, the Deposit Insurance Corporation) before making a decision.
