As South Africa observes Money Smart Week South Africa 2026, consumers are being encouraged to understand how their savings are protected through the Corporation for Deposit Insurance (CODI), a safety net established to protect qualifying bank depositors if a participating bank fails.
The South African Reserve Bank (SARB) established CODI under the Financial Sector Laws Amendment Act of 2021 as part of South Africa’s financial sector reforms aimed at strengthening confidence in the country’s banking system. The deposit insurance scheme became fully operational in 2024 and provides protection for eligible deposits held at participating banks.
CODI’s role is to reimburse qualifying depositors up to the legislated protection limit if a participating bank is placed into resolution or fails.
This ensures that ordinary consumers, small businesses and other eligible depositors do not lose all of their savings should a bank become unable to meet its obligations.
Who is eligible for CODI?
Most individuals and qualifying entities with eligible deposits at participating South African banks are automatically covered. This includes savings accounts, cheque accounts, fixed deposits and similar deposit products held with banks that participate in the scheme.
However, certain financial products, such as investments that are not bank deposits, shares, unit trusts and some specialised financial instruments, are not covered by CODI.
The protection applies per depositor, per participating bank, up to the maximum amount prescribed by law. Depositors with accounts at more than one participating bank may qualify for separate protection at each bank.
Do you need to register?
One of the biggest misconceptions about CODI is that consumers must sign up to receive protection.
The answer is no.
There is no application or registration process for consumers. If you hold eligible deposits at a participating bank, your protection is provided automatically. Banks are responsible for maintaining customer information required for the scheme.
Consumers are encouraged to:
- Keep their personal details up to date with their bank.
- Ensure their identity documents and contact information are current.
- Maintain accurate records of their bank accounts.
- Confirm that their bank participates in the deposit insurance scheme.
Should a participating bank fail, eligible depositors would receive guidance from CODI and the relevant authorities on how compensation would be paid.
Why CODI matters
Deposit insurance is widely used around the world to strengthen confidence in banking systems and reduce the risk of panic withdrawals during times of financial uncertainty.
For South Africa, CODI forms part of the country’s broader financial stability framework, helping to protect consumers while supporting confidence in the banking sector.
As Money Smart Week South Africa 2026 highlights the importance of financial literacy, understanding how deposit insurance works can help consumers make informed decisions about where they keep their savings and appreciate the protections already built into South Africa’s banking system.
For more information about deposit insurance, consumers can visit the South African Reserve Bank or the Corporation for Deposit Insurance websites, or enquire with their bank about how the scheme applies to their accounts.
