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Individual or Company Depositors Can Get a Sense of Safety With the Hong Kong Deposit Protection Scheme in Place

Hong Kong Bank Deposit Protection SchemeFor a commoner, banks are the place to keep money safe and secure. But what happens to the funds held in the bank when the bank fails? Who then takes care of that? Most banks in the world are protected under some deposit protection scheme, mainly to compensate the depositor’s monies if a bank winds up.


Savings for a Rainy Day

Every person wants to have savings set aside for emergencies or savings for plans. Thus, they rely on banks to keep it safe. Most banks in Hong Kong are members of the Deposit Protection Scheme (DPS). The DPS protects deposits placed in banks, and the protection is statutory. The bank members must display the DPS membership at their premises so customers can quickly identify it. In case a bank winds up, eligible money deposited in the bank will be paid up by DPS with a maximum amount of HK$500,000 per depositor per bank.


Protected Deposits

Money deposited in Hong Kong banks may comprise of different currencies. Deposits in Hong Kong dollar, Renminbi and foreign currency, deposited by company or individuals qualify for the Deposit Protection Scheme. Eligible deposits such as money in savings accounts, current accounts, secured deposits and time deposits less than five years maturity. However, other types of deposits do not qualify for protection. The types of deposits that are not eligible for protection are as follows:

  • Time deposits with more than five years of maturity
  • Structured deposits such as foreign exchange linked and equity-linked deposits
  • Bearer instruments such as bearer certificates of deposits
  • Offshore deposits

As the protection scheme is for deposits, other financial products are not eligible for protection. Contact your bank for more information, and if your deposits are qualified for the DPS.



The Hong Kong Deposit Protection Board (Board) will commence the compensation processing when a bank member fails. The process starts with examining records of depositors and respective amounts. Depositors do not necessarily need to file a claim. The Board may require them to furnish supporting information for compensation entitlement. The Board will pay up the compensation as soon as possible. The Board may even pay a provisional amount to the depositor before the final amount can be concluded. The compensation amount will calculate both the interest and principal. No matter how much the amount totals up to, the maximum compensated amount is HK$500,000.00 per depositor per bank.

Hong Kong Bank Deposit Protection Scheme



If you are worried about your savings and deposits in banks of Hong Kong, you can rest assured now that you know your deposits are safe. All licensed banks in Hong Kong are members of the Deposit Protection Scheme. This scheme will compensate for the maximum amount of HK$500,000.00 per depositor per bank if a bank member fails. Deposits made in HK$, Renminbi and foreign currencies are protected under this scheme.