Deposit Insurance Corporation Makes Your Money Safe

Established by the Central Bank in 1986, the Deposit Insurance Corporation is responsible for protecting your financial deposits against potential loss, providing coverage of up to $200,000

It should be noted, however, that only deposits made with institutions registered under the Financial Institutions Act are afforded this protection. To date there are twenty four institutions, including commercial banks, finance houses, trust companies and merchant banks, that are registered under the Financial Institutions Act.

These financial institutions are:

Commercial Banks

• Bank of Baroda (Trinidad and Tobago) Limited
• Citibank (Trinidad and Tobago) Limited
• First Caribbean International Bank (Trinidad & Tobago) Limited
• First Citizens Bank Limited
• JMMB Bank (T&T) Limited
• RBC Royal Bank (Trinidad and Tobago) Limited
• Republic Bank Limited
• Scotiabank Trinidad and Tobago Limited
• First Citizens Trustee Services Limited
• Guardian Group Trust Limited
• JMMB Express Finance (T&T) Limited
• RBC Investment Management (Caribbean) Limited
• RBC Merchant Bank (Caribbean) Limited
• RBC Trust (Trinidad and Tobago) Limited
• Scotia Investments Trinidad and Tobago Limited

Finance Houses

• Caribbean Finance Company Limited
• Fidelity Finance and Leasing Company Limited
• Island Finance Trinidad and Tobago Limited
• Massy Finance GFC Ltd
• NCB Global Finance Limited

Trust Companies and Merchant Banks

• ANSA Merchant Bank Limited
• Citicorp Merchant Bank Limited
• Development Finance Limited
• First Citizens Asset Management Limited

The DIC is responsible for the protection of deposits only and does not protect against any investment loss. Investments are speculative by nature and, as such, may, on occasion, result in loss.

• Keep all deposits made to your account updated.
• Ensure that all your deposit and loan documents are kept in a safe place

The Deposit Insurance Fund provides insurance protection to depositors against the potential loss of their deposits held in financial institutions registered under the Financial Institutions Act. Only deposit instruments issued by these institutions are covered (these instruments are outlined below) and not instruments of an investment nature. The Deposit Insurance Fund provides coverage to depositors up to a maximum of $50,000 currently but the 2007-2008 National Budget proposes an increase to $75,000.

Deposits received by a licensed financial institution are insured. These include the following:

Normal Deposits

• Savings Accounts (principal + interest up to a maximum of $50,000)
• Current Accounts (including interest up to a maximum of $50,000)
• Fixed Deposits (including interest up to a maximum of $50,000)
• Interest Payable up to the day before the date of closure of the institution Other Deposits
• Outstanding or uncleared balances for which the financial institution has issued a certificate, receipt, cheque, money order, draft or other such instrument.

The current coverage is up to a maximum of $50,000 for each depositor in respect of deposits held in each financial institution.

Examples of instruments not covered by DIC are:

• Letters of credit;
• Stand-by letters of credit, and similar instruments;
• Inter-bank deposits;
• Deposits from affiliated companies;
• Foreign currency accounts and
• Investment accounts

In December 1986 (the same year in which the DIC was established), upon the application of the Central Bank, the High Court gave orders for closure of four financial institutions. On December 22, 1986, the DIC was required to initiate insurance payments to depositors in these organizations – a deposit insurance liability of $191 million within a period of 90 days. DIC was required to make payments to over 13,000 depositors. During the period 1988 and 1993, additional payments totaling $27.5 million were paid out to depositors of the four financial institutions.

• If you change your address notify your banker immediately to have the records reflect the new address.
• Be aware of the implications involved in using your deposit as a guarantee for someone else’s loan. Ask your banker about your deposit insurance coverage under these arrangements.
• If you use your deposit held in Bank A as collaterall for a loan for a friend or relative in Bank B and Bank A subsequently fails, the following will obtain:Deposit in Bank A will be assigned to Bank B. As such, the payout of deposit insurance will not be made to the depositor in Bank A, but to the institution Bank B.
• Be aware of the extent of coverage within the different types of deposit accounts. Ask your banker about deposit insurance coverage options for Single, Joint and Trust Accounts.