🏦 BanksWhat is the Deposit Insurance Scheme and what does it protect?
The Deposit Insurance Scheme has protected depositors since 2018. It guarantees your money on deposit if a member institution — a commercial bank, a building society or a licensed deposit-taking institution — fails. It is run by the Bank of Guyana and funded by premiums that the member institutions pay. Cover is up to G$2,000,000 per depositor, per institution, per ownership category, it is automatic (you do not opt in), and it also covers foreign-currency deposits up to the same limit in Guyana dollars. 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 money in savings accounts, chequing accounts, fixed deposits and most other deposit accounts held with a member institution. The limit is G$2,000,000 per depositor, per institution, per ownership category — so if you hold a personal account and a joint account at the same bank, each is covered separately up to the limit.
The ownership categories that are insured separately include individual accounts, joint accounts, business accounts, and trust or nominee accounts. Foreign-currency deposits are covered too, converted to Guyana dollars for the limit. Cover is automatic — you do not need to register.
What the scheme does not protect
Investments such as unit trusts, mutual funds, shares, bonds and repurchase agreements (repos) are not deposits and are not covered by the scheme. Their value can rise and fall with the market, and that is a normal risk, not something a guarantee scheme covers. Money with an entity that is not a member institution of the scheme is also outside the scheme.
The scheme 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 G$2,000,000 on deposit at one institution you can spread the money across several member institutions to stay under the limit at each, or use different ownership categories where that genuinely applies. The Bank of Guyana publishes the list of member institutions.
Because the scheme 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 the scheme cover?
- Up to G$2,000,000 per depositor, per member institution, per ownership category. At that limit the great majority of deposit accounts in Guyana are fully covered. Foreign-currency deposits are covered too, up to the same limit converted to Guyana dollars.
- Does the limit apply per account or per person?
- Per depositor and per institution, within each ownership category. Several personal accounts at the same bank are added together and treated as one, up to G$2,000,000. A joint account is a separate category, also covered up to the limit.
- Is my unit trust or repo covered by the scheme?
- No. Unit trusts, mutual funds, repos, shares and bonds are investments, not deposits, so they are outside the scheme. They carry market risk. Only money in a deposit account at a member institution is covered.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (the National Insurance Scheme (NIS), the Bank of Guyana, Tax Administration Guyana, the the Deposit Insurance Scheme) before making a decision.
