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 equal to one twentieth (1/20 of 1%) or 0.0005 of an amount equal to the average of the sum of those deposits insurable by the DIC , i.e., the assessment base, and deposits 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 15th June in the premium year for which the premium is payable, and the remainder is to be paid to the DIC on or before 15th December in the premium year.
Simple illustration of Premium Calculation of Ongoing Members
| Member Institutions | Bahamian Dollar Deposits [2011] | Premiums1 Assessed for 2012 | ||
|---|---|---|---|---|
| 31st Mar | 30th Sept | Average | ||
| Bank A | $3,125,000 | $3,325,000 | $3,225,000 | $1,612.50 |
| Bank B | $5,555,000 | $5,850,000 | $5,702,500 | $2,851.25 |
| Bank C | $6,000,500 | $6,350,500 | $6,175,500 | $3,038.75 |
| Bank D | $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 are new members to the DIC, the premium payable is to be the same proportion of one-twentieth of one percent of the amount equal to the sum of insurable deposits and deposits with the member institution as at the end of the month in which it becomes a member. 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.