🏦 BanksWhat is the Corporation for Deposit Insurance and what does it protect?
The Corporation for Deposit Insurance (CODI) is a subsidiary of the South African Reserve Bank and began protecting depositors on 1 April 2024 — before that, South Africa had no explicit deposit guarantee. CODI covers your money on deposit if a member institution — a registered bank, mutual bank or co-operative bank — fails. It is funded by premiums and levies the banks pay. Cover is up to R100,000 per qualifying depositor, per bank, it is automatic (you do not opt in), and it covers rand and foreign-currency deposits. In this article we go through 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 transaction accounts, savings accounts, fixed deposits and most other deposit products held with a member bank, up to R100,000 per qualifying depositor per bank. Your balances across accounts at the same bank are added together and covered as one, up to the limit — not R100,000 per account.
For a joint account, each holder is generally covered for their share, up to the limit, in addition to their own individual accounts at that bank. Foreign-currency deposits are covered too, converted to rand for the limit. Cover is automatic — you do not need to register or apply in advance.
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 CODI. 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 CODI member institution is also outside the scheme.
CODI 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 R100,000 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. CODI publishes the list of member institutions.
Because CODI 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 CODI cover?
- Up to R100,000 per qualifying depositor, per bank. Balances across your accounts at the same bank are added together, so it is a total, not R100,000 per account. Foreign-currency deposits are covered too, converted to rand.
- When did CODI start?
- 1 April 2024. It is a subsidiary of the South African Reserve Bank. Before it, South Africa had no explicit deposit guarantee — depositors relied on SARB supervision and their ranking in a liquidation.
- Is my unit trust or repo covered by CODI?
- No. Unit trusts, mutual funds, repos, shares and bonds are investments, not deposits, so they are outside CODI. 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 the UIF, the South African Reserve Bank, Tax Administration South Africa, the Corporation for Deposit Insurance) before making a decision.
