The maximum coverage of deposit insurance in Taiwan is NT$3 million (NT$3,000,000 / 300 萬) per depositor per insured institution, combining principal and interest, with New Taiwan Dollar and foreign currency deposits calculated together; this limit was prescribed by the competent authority in consultation with the Ministry of Finance and the Central Bank pursuant to Article 13 of the Deposit Insurance Act, applicable since January 1, 2011 (ROC Year 100). Only when an insured financial institution is ordered to suspend business by the competent authority will the Central Deposit Insurance Corporation (CDIC) fulfill insurance liabilities pursuant to Article 28 of the Act; payoffs are made exclusively in New Taiwan Dollars, and depositors pay zero insurance premiums. Investment funds, stocks, insurance policies, ETFs, structured notes, gold passbooks, and virtual assets are not deposits and are strictly excluded from coverage regardless of capital-preservation claims.
Reminder: The current version of the Deposit Insurance Act was amended on February 4, 2015 (ROC Year 104); the statute provides that the maximum coverage limit is determined by the competent authority, and NT$3,000,000 is the set ceiling. If adjusted in the future, CDIC announcements govern. Deposit losses resulting from fraud or unauthorized withdrawals do not fall under deposit insurance coverage; report to police and call the 165 Anti-Fraud Hotline. The 7-tier deposit insurance premium rating system implemented on January 1, 2026 (ROC Year 115) represents premiums paid by banks to CDIC and does not alter coverage for depositors.
How NT$3 Million Coverage Is Calculated Per Depositor Per Bank
CDIC FAQs clarify that the maximum coverage limit is the combined ceiling of NTD and foreign currency deposit principal and interest for each depositor at the same domestic insured institution. Payoffs are calculated within NT$3 million based on account records on the failed institution's final business day after netting loans and claims:
- Different Branches and Accounts of the Same Bank Are Combined: In CDIC guidance, deposits held by the same individual at branch a and branch b of Bank A are consolidated.
- Interest Accrues Until the Final Business Day: Under Article 13, Paragraph 2 of the Act, coverage encompasses deposit principal plus interest accrued up to the final business day.
- Foreign Currencies Converted to New Taiwan Dollars: Converted based on closing exchange rates on the final business day, with payouts delivered in New Taiwan Dollars.
- Loans Are Offset First: Under Articles 43 and 44, debts pledged with deposits or debts that have matured may be offset first by CDIC before paying out remaining deposits up to the maximum coverage limit.
- Amounts Exceeding NT$3 Million Are Not Zeroed Out: Excess balances enter the liquidation proceedings of the failed institution and are distributed as assets are liquidated; Article 42 stipulates deposit claims hold priority repayment over non-deposit claims.
| Scenario (Based on CDIC FAQs) | Calculation Method | Coverage Outcome |
|---|
| Person A has NT$3.5 million (350 萬 / NT$3,500,000) deposit principal and interest in Bank A | Consolidated across the same insured institution | Payout of NT$3 million; remaining NT$500,000 (50 萬) enters liquidation proceedings |
| Person A deposits NT$2 million (200 萬) each in Bank A and Bank B | Calculated separately across different insured institutions | Both banks are within NT$3 million each; fully protected (NT$4 million total) |
| Joint account of A and B with NT$5 million (500 萬, unstated shares); A has personal deposit of NT$1.5 million (150 萬), B has NT$300,000 (30 萬) | Joint account divided equally between 2 persons, then merged with personal deposits | A has 400 萬 (NT$4 million) total, paid NT$3 million; B has 280 萬 (NT$2.8 million) total, fully paid |
| Individual account of John Doe and sole proprietorship "John Doe Firm" account | Individual and sole proprietorship are treated as distinct depositors | Each independently protected up to the maximum coverage limit |
| Bank deposits plus stored-value cards and e-payment stored balances issued by the same bank | Stored-value balances received from concurrent e-payment business are segregated from deposits | Deposits and stored-value funds are each protected up to NT$3 million separately |
| Corporate employee retirement pension specialized deposit accounts with sub-accounts | Article 13, Paragraph 3 of the Act | Individual employee pension deposits are protected separately from their other personal deposits |
What Is Covered vs What Is Not Covered
| Covered by Deposit Insurance | Not Covered by Deposit Insurance |
|---|
| Checking deposits, passbook deposits, time deposits, CD passbooks | Negotiable certificates of deposit (NCD) |
| Foreign currency checking, demand, and time deposits | Offshore Banking Unit (OBU) deposits (Deposit Insurance Act Article 12) |
| Postal savings accounts at Chunghwa Post | Interbank deposits and deposits of government agencies (treasury deposits) |
| Credit cooperative and agricultural/fishery association credit department deposits | Central Bank deposits and deposits of other insured institutions |
| Trust funds deposited into insured banks under trust agreements | Mutual funds, stocks, bonds, insurance policies, ETFs, structured notes |
| Stored balances of electronic payment accounts operated by insured institutions | Gold passbooks, virtual assets, securities sub-accounts, crypto assets |
Article 17 requires insured institutions to display deposit insurance membership plaques at business premises and websites. Check CDIC website for official membership lists.
Which Financial Institutions Are Covered in Taiwan
| Institution Type | Included Institutions | Notes |
|---|
| Domestic Banks | Taiwan domestic commercial banks and specialized banks | Mandatory participation under Article 10 |
| Foreign and Mainland Banks in Taiwan | Taiwan branches of foreign banks and mainland Chinese banks | Branches within Taiwan territory are covered |
| Chunghwa Post | Postal savings system nationwide | Chunghwa Post is a covered insured institution |
| Credit Cooperatives & Agriculture/Fishery | Credit cooperatives, Agricultural Bank of Taiwan, farmer/fishermen credit departments | Local community financial institutions are included |
Bank Failure Payout Process: 3 Compensation Methods
Under Article 28 of the Deposit Insurance Act, CDIC fulfills insurance responsibilities through 3 primary mechanisms:
- Direct Cash Payoff: CDIC directly pays insured depositors in cash, wire transfer, or checks.
- Facilitating Transfer or Assumption: Providing financial assistance to facilitate the transfer of deposits and loans to another sound insured institution or bridge bank.
- Designating an Operating Bridge Bank: Establishing a bridge bank to assume operations and deposits.
CDIC will notify depositors by mail or internet, so depositors do not need to calculate amounts themselves. In systemic risk situations threatening financial order, compensation may legally exceed the maximum coverage limit under CDIC guidelines.
Certain amounts may be temporarily reserved pending resolution: court attachments, third-party pledge rights, declared bankruptcy without appointed trustee, deceased depositor without completed inheritance registration, or frozen payments (Article 45). Deposits of deceased depositors remain insured in the deceased person's name prior to inheritance settlement. Furthermore, under Article 27, if a deposit insurance contract is terminated, depositors remain protected up to the maximum coverage limit for 6 months (half a year) from termination date.
Important Considerations for Diversifying Deposits (Editorial Tips)
- If your deposit principal and interest in a single institution approach or exceed NT$3 million, consider spreading funds across different institutions rather than opening multiple accounts in the same bank, as the same bank consolidates all accounts.
- Factor in accrued interest on time deposits before maturity, as interest counts toward the NT$3,000,000 ceiling.
- Accounts held in individual names of family members are treated as separate depositors; joint accounts follow contractual shares.
- Losses from fraud or scams are separate matters; see How to Identify Scam SMS and Calls and What to Do If Account Is Frozen as Alert Account.
Frequently Asked Questions
Are foreign currency deposits covered by deposit insurance?
Yes. Foreign currency deposits such as US dollars and Japanese yen are combined with New Taiwan Dollar deposits under the NT$3 million maximum limit per institution, converted at closing exchange rates on the final business day and paid out in NTD.
Can I open multiple accounts in the same bank to get NT$3 million each?
No. All accounts held by the same depositor at the same institution (different branches, demand deposits, time deposits, foreign currency) are consolidated up to NT$3 million total. Only accounts at different institutions are calculated separately.
Are deposits in Chunghwa Post insured?
Yes. Chunghwa Post is an insured institution with CDIC, and postal savings enjoy the same NT$3 million protection per depositor.
Are mutual funds and insurance policies sold by banks protected?
No. Deposit insurance strictly protects "deposits". Mutual funds, stocks, ETFs, insurance policies, structured notes, gold passbooks, and crypto assets are non-deposit products and carry zero deposit insurance coverage even if purchased through banks.
Can I file a claim with CDIC if my deposits are stolen or scammed?
No. CDIC fulfills insurance liabilities only when an insured institution is ordered to suspend business. For scams or theft, report immediately to police, contact your bank, or dial the 165 Anti-Fraud Hotline.
Last updated: 2026-11-03
This article is compiled by SOSfix from official open data for general reference only; consult the Central Deposit Insurance Corporation (toll-free hotline 0800-000-148) or your financial institution for specific cases.
Sources
- Laws & Regulations Database: Deposit Insurance Act (Amended Feb 4, 2015, verified 2026-11-02): Article 10 insured institutions, Article 12 coverage scope and exclusions, Article 13 maximum coverage limit and retirement accounts, Article 17 signage, Article 27 6-month post-termination protection, Article 28 payoff fulfillment, Articles 42-45 claims priority, offsetting, joint accounts, and reserved payoffs.
- Central Deposit Insurance Corporation: Deposit Insurance FAQs (Verified 2026-11-02): NT$3,000,000 limit effective Jan 1, 2011, combined NTD and foreign currency, NTD payoffs, covered vs non-covered table, joint accounts, sole proprietorships, stored-value funds, exclusions, reserved payouts, fraud non-coverage, hotline 0800-000-148.
- Central Deposit Insurance Corporation: Insured Institutions (Updated Jan 30, 2024, verified 2026-11-02): Four major categories of insured institutions, including Chunghwa Post, credit cooperatives, Agricultural Bank of Taiwan, and agriculture/fishery credit departments.
- Central Deposit Insurance Corporation: Depositor Rights Protection (Updated Jan 29, 2024, verified 2026-11-02): Three payoff methods, systemic risk protection beyond maximum limit, bridge banks.
- Central Deposit Insurance Corporation: Risk-Based Premium FAQs (Verified 2026-11-02): 7-tier premium rating system effective Jan 1, 2026 (approved by FSC on May 26, 2025), regarding insured institution premiums.
