In the Deposit Guarantee Scheme, how is coverage determined for multiple deposits held at the same bank?

• A. Coverage is per account
• B. Coverage is per depositor per institution
• C. Coverage is per bank across all customers
• D. Coverage is only for personal accounts

Answer: (B)

Coverage under a Deposit Guarantee Scheme is determined per depositor per institution. When you have multiple deposits at the same bank, those deposits are added together under that single institution and counted toward the bank’s limit for you as a depositor. If you have deposits at different banks, each bank provides its own separate protection up to its limit for you. This is why the option describing coverage per depositor per institution is the correct one.

The other ideas don’t fit because protection is not allocated per individual account, nor is it a single pool across all customers at a bank, and it generally applies to both personal and business deposits, not only personal accounts.