Deposit Insurance Premiums
Who Pays the Premium
Depositors do not pay for deposit insurance. Instead, DIC member institutions pay premiums to the DIC to cover the cost of insuring deposits.
How is it Calculated
DIC members pay annual premiums to the Fund based on the premium rate determined by the DIC, which is applied to the average of the sum of those deposits insurable by the DIC, i.e., the assessment base, and deposited with the member institution, as of 31st March and 30th September in the immediately preceding premium year. The member institution may use any method approved by the DIC to determine the aggregate amount of its deposits that are insurable.
One half of the premium payable by a member institution is to be paid to the DIC on or before 31st March in the premium year for which the premium is payable, and the remainder is to be paid to the DIC on or before 30th September in the premium year.
Simple illustration of Premium Calculation of Ongoing Members
| Member Institutions | Bahamian Dollar Deposits [2022] | Premiums1 Assessed for 2023 | ||
|---|---|---|---|---|
| 31st Mar | 30th Sept | Average | ||
| Credit Union A | $3,125,000 | $3,325,000 | $3,225,000 | $1,612.50 |
| Credit Union B | $5,555,000 | $5,850,000 | $5,702,500 | $2,851.25 |
| Bank A | $6,000,500 | $6,350,500 | $6,175,500 | $3,038.75 |
| Bank B | $8,350,250 | $8,600,250 | $8,475,250 | $4,237.63 |
| Total | $23,030,750 | $24,125,750 | $23,578,250 | $11,789.13 |
1 Assessed at one-twentieth of one percent (.0005)
What happens when there are new members?
Where there is a new member institution to the DIC, the premium payable in the year in which it becomes a member is one-tenth of one percent of those deposits insured by the DIC and deposited with the member institution as at the end of the month in which it becomes a member institution. One half of the premium is due to the DIC within sixty (60) days after the end of the month in which the institution becomes a member, and the remainder is to be paid on or before 31st December immediately following the month in which the institution becomes a member.