Your entitlement to compensation will be calculated by adding up the amount of your eligible deposits and subtracting from it the total amount of your liabilities to the Scheme member. The maximum protection limit is HK$500,000. Your liabilities to the Scheme member include any money which you owe the Scheme member, for example, loans, unpaid fees and charges, and debts arising from other transactions. Both the principal and interest of the deposits and the liabilities will be included in the calculation of compensation.

Special treatments will be applied to deposits held by multiple depositors or held by an intermediary for the benefit of other persons. For a deposit held in a joint account, each account holder will be entitled to an equal share of the deposit unless there is evidence showing otherwise. For deposits held under a bare trust, or held in a client account, the underlying beneficiary or client is entitled to compensation in respect of the deposit. Each person's share of deposits in these accounts will be added to the deposits held by him or her in determining his or her entitlement to compensation.

Examples of how compensations are calculated
The following examples show how compensation under the Scheme is calculated for persons holding deposits in different types of accounts.
(All amounts include principal and interest)

Example 1: Deposits held by a single depositor
Depositor Details Amount (HK$)
Eligible deposits with the bank
Mr Chan Savings Account 50,000
Mr Chan Current Account 500,000
Debts owed to the bank
Mr Chan Overdraft 40,000
Mr Chan    
Net protected     deposits (50,000 + 500,000) - 40,000 510,000
Compensation amount 500,000


Example 2: Deposits held in a joint account
Depositor Details Amount (HK$)
Eligible deposits with the bank
Mr Lee and Mrs Lee
(a joint account)
Time Deposit 1,000,000
Mrs Lee
(a single depositor account)
Savings Account 120,000
Debts owed to the bank
Mr Lee Personal loan 30,000
Mr Lee    
Net protected     deposits (1,000,000/2)-30,000 470,000
Compensation amount 470,000
Mrs Lee    
Net protected     deposits (1,000,000/2) + 120,000 620,000
Compensation amount 500,000


Example 3: Deposits held in a bare trust or client account
Depositor Details Amount (HK$)
Eligible deposits with the bank
Mr Wong Current Account 60,000
XYZ Bare Trustee
(held in trust for
Mr Wong)
Time Deposit 250,000
ABC Brokerage Firm
(held for a client,
Mr Wong)
Current Account 250,000
Debts owed to the bank
Nil    
Mr Wong    
Deposit held by Mr Wong 60,000
Deposit held by XYZ Bare Trustee in trust for Mr Wong 250,000
Deposit held by ABC Brokerage Firm for Mr Wong 250,000
Net protected deposits (60,000+250,000+250,000) 560,000
Compensation amount 500,000