🏦 BanksWhat is the Deposit Insurance Corporation and what does it protect?
The Deposit Insurance Corporation (DIC) has protected depositors in Trinidad and Tobago since 1986. It guarantees your money on deposit if a member institution — a commercial bank or a non-bank licensed under the Financial Institutions Act — fails. It is a statutory body under the Central Bank, funded by premiums the institutions pay. Cover is up to TT$125,000 per depositor, per institution, it is automatic (you do not opt in), and it also covers foreign-currency deposits, converted to Trinidad and Tobago dollars for the limit. 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 TT$125,000 per depositor, per institution — several accounts you hold in your own name at the same bank are added together and covered as one, up to the limit.
A joint account is generally treated as splitting equally between the account holders, and each holder's share is added to their other deposits at that institution for the TT$125,000 limit. Foreign-currency deposits are covered too, converted to Trinidad and Tobago 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 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 is outside the DIC — credit unions have their own arrangements — as is money with any entity not licensed under the Financial Institutions Act.
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 TT$125,000 on deposit at one institution you can spread the money across several member institutions to stay under the limit at each. The DIC and the Central Bank publish the list of member institutions.
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 TT$125,000 per depositor, per member institution. That covers the majority of personal deposit accounts in Trinidad and Tobago in full. Foreign-currency deposits are covered too, converted to Trinidad and Tobago dollars for the limit.
- Does the limit apply per account or per person?
- Per depositor and per institution. Several personal accounts at the same bank are added together and treated as one, up to TT$125,000. Your share of a joint account is added to your own personal deposits at that institution.
- Is my unit trust or repo covered by DIC?
- No. Unit trusts, mutual funds, repos, shares and bonds are investments, not deposits, so they are outside the DIC. They carry market risk. Only money in a deposit account at a member bank or licensed non-bank is covered — credit union savings are protected under a separate arrangement.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (the National Insurance Board (NIBTT), the Central Bank of Trinidad and Tobago, the Inland Revenue Division, the Deposit Insurance Corporation) before making a decision.
