Putting money and assets into a bank feels safe, but “safe” depends on three things: rules, the bank’s health, and how you structure ownership. Singapore banks have strong protections, but they are limited and conditional. If you ignore the details, you’re not cautious; you’re negligent.
Know what the state protects: deposit insurance limits and scope
Singapore’s Deposit Insurance Scheme (SDIC) protects eligible deposits up to S$100,000 per depositor, per scheme member. That means your total covered cash with one bank is capped.
Important: foreign-currency deposits are treated differently (check specifics), and some account types are aggregated for the cap while trust/client accounts may be treated separately.
Don’t assume “one bank = everything safe.”
Don’t mix up bank deposits with investment custody
Deposits (savings, current, SGD fixed deposits) and custodial holdings (stocks, bonds, mutual funds) in Singapore banks are NOT the same:
- Deposits are covered by SDIC up to the cap above.
- Securities (SGX-listed shares) are typically held through the Central Depository (CDP) or under broker/custodian nominee arrangements; these are custody arrangements, not deposit insurance. How your shares are held affects your legal rights and ease of recovery in a bank/broker failure.
Learn whether your broker uses CDP direct accounts or nominee custody and what those changes mean in practice.
Bottom line: read the fine print on how your securities are held, not just that they’re “with” the bank.
Use professional custody services for big portfolios
If you have meaningful assets (family office level, institutional amounts, or concentrated holdings), use a regulated custodian or sub-custodian service offered by Singapore banks.
Major Singapore banks offer custody services and asset safekeeping; they provide segregation, reporting, fund administration, and regulatory compliance. Don’t expect retail banking to offer the same institutional custody standards.
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Physical valuables: safe deposit boxes and private vaults
For jewellery, titles, wills, or physical certificates, use bank safe deposit boxes or specialist vaults. Banks (DBS, OCBC, UOB, etc.) run safe-deposit services and premium safekeeping facilities, but hours, fees, insurance, and access rules vary.
Compare bank boxes vs private vaults, private vaults can offer 24/7 access and different insurance terms. Do not keep originals in a home safe if you want true risk reduction.
Spread risk intelligently – across banks and account types
Because SDIC caps protection per bank, spread large cash balances across different banks to increase coverage.
Also: use different legal entities or trust accounts (with professional advice) if you need more segregation. But don’t be sloppy, spreading money increases administration and tax reporting, so do the math first.
Security and access controls – don’t be the weakest link
Banks are secure, but most losses are due to human error or social engineering.
Lock down your accounts,
- Use hardware 2-factor tokens or bank-approved authentication devices.
- Turn on transaction alerts (SMS/email) for all accounts.
- Set daily transfer limits and require dual sign-offs for large moves.
- Use a separate email for bank communications and never click suspicious links.
If it sounds paranoid, good. Paranoia beats regret.
Contracts, nominee accounts, and shareholder rights – read closely
If your broker holds shares in a nominee account, you are the beneficial owner, but your name may not appear on the share register. That can complicate voting rights, corporate actions, or recovery if the broker fails. Ask:
- Are my securities in a CDP account (direct) or a nominee account (broker/custodian)?
- Will I get electronic statements showing segregated holdings?
- What happens to my entitlements and dividends?
If you can’t answer these before you invest, stop and ask.
Tax, reporting, and cross-border issues
Keeping assets in Singapore doesn’t avoid tax or reporting obligations in your home country. If you store foreign currency, bonds, or foreign equities in Singapore, check withholding tax, FATCA/CRS reporting, and potential estate issues.
Get local tax advice.
What to do if your bank or broker gets into trouble
Have a plan beforehand,
- Keep copies of account statements and contracts offline.
- Know who the regulator is (MAS) and how to file complaints.
- For deposits, SDIC will pay insured amounts in the event of failure; know how the cap applies to your accounts.
- For custody issues, contact the custodian and legal counsel — recovery depends on segregation and paperwork.
Planning beats panic.
Fast checklist – before you place large sums or hand over certificates
- Verify SDIC coverage and which accounts are aggregated.
- Confirm how securities are held: CDP vs nominee; get it in writing.
- For big portfolios, insist on a regulated custodian and custody agreement.
- Use multiple banks if you have deposits above S$100,000.
- Put physical originals into a bank safe deposit box or insured vault.
- Harden your online access: hardware token, alerts, limits.
- Get a lawyer for nominee, buyback, or escrow arrangements.
Bottom line – be boring and methodical
Singapore banks system is robust, but robust ≠ bulletproof. The SDIC cap, custody structures, currency exposure, and operational risks all bite if you ignore them.
If you’re serious about protecting wealth, treat storage as an operational problem, document who owns what, spread risk, use professional custody for big sums, and lock your access down.
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