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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 |
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