The Deposit Guarantee Scheme covers deposits held by which of the following?

• A. Charities and trustees of large defined benefit occupational pension schemes
• B. Large companies and trustees of large defined benefit pension schemes only
• C. Charities and large companies only
• D. Charities, large companies and trustees of large defined benefit occupational pension schemes

Answer: (C)

The key idea is who is eligible to have their deposits guaranteed under the scheme. The Deposit Guarantee Scheme protects deposits for entities that hold money in a bank in their own name and are considered eligible depositors. In this context, charities and large companies are covered, so their cash placed with a bank is protected up to the guarantee limit.

Deposits held by trustees of large defined benefit occupational pension schemes are not covered. Those deposits are held on trust for scheme beneficiaries and are not treated as deposits of the trustee as a separate depositor. Pension funds operate under a different framework, so the guarantee does not extend to money held on behalf of a scheme.