IDIC – When choosing a place to invest their money, the amount of deposit interest becomes one of the main factors considered by customers.
LPS – When choosing a place to place their funds, the amount of deposit interest is one of the main factors considered by customers. To ensure security in saving money, it is important for you to know that safe deposits are deposits that are guaranteed by the Deposit Insurance Corporation. Although many banks offer special interest rates to attract customers' attention, not all interest rates...
Therefore, knowing about the Indonesia Deposit Insurance Corporation and its role is crucial. Here is a complete explanation of the Indonesia Deposit Insurance Corporation.
Also Read: Tips for choosing reliable deposit interest rates
Getting to Know the Indonesia Deposit Insurance Corporation (IDIC) and Its Functions
1. What is the Indonesia Deposit Insurance Corporation (IDIC)?
The Indonesia Deposit Insurance Corporation is an independent institution established based on Law Number 24 of 2004 concerning the Indonesia Deposit Insurance Corporation.
The IDIC is responsible for protecting and returning customer deposits if a bank experiences financial difficulties or even bankruptcy. Its main function is to provide a sense of security to the public so that they can trust and comfortably keep their money in the bank.
2. Functions and Duties of the Indonesia Deposit Insurance Corporation
The Indonesia Deposit Insurance Corporation has the main function of protecting customer deposits. This function includes returning deposits up to a certain limit in the event of an incident that threatens the stability of the bank.
In addition, the IDIC also plays a role in preventing banking panics by providing assurance that customer deposits are safe and guaranteed by the relevant authorities.
Here are the tasks of the Indonesia Deposit Insurance Corporation..
1.Formulating and Establishing Deposit Insurance Policy: The IDIC is responsible for formulating and establishing policies for the implementation of deposit insurance, including provisions that must be complied with by financial institutions.
2. Implementing Deposit Insurance: As a guarantee institution, the IDIC is tasked with implementing deposit insurance programs to ensure guarantees for customer deposits.
3. Formulating and Establishing Insurance Policy Policies: The IDIC is involved in formulating and establishing policies for the implementation of insurance policy programs to provide protection against insurance claims.
4. Implementing Insurance Policy Programs: The IDIC also implements insurance policy programs to ensure adequate protection for policyholders.
5. Formulating and Establishing Financial System Stability Policies: The IDIC has a role in formulating, establishing, and implementing financial system stability policies in accordance with its authority.
6. Bank Resolution Preparation: The IDIC is responsible for formulating, establishing, and implementing bank resolution preparation measures, including stress tests on banks and explorations to other banks or investors.
7. Preparation of Insurance Company Liquidation: The IDIC is involved in formulating, establishing, and implementing insurance company and Sharia insurance company liquidation preparations.
8. Insurance Company Liquidation: The IDIC is responsible for formulating, establishing, and implementing insurance company and Sharia insurance company liquidation policies whose business permits have been revoked by the OJK.
3. Interest Rates Guaranteed by the IDIC
The interest rate guaranteed by the Indonesia Deposit Insurance Corporation is currently an important guideline for customers. Not only does it maintain the security of deposits, but the IDIC also ensures that the interest rate given does not exceed the set insurance standard.
Here are the guaranteed interest rates that apply from 1 October 2023 to 1 January 2024,
Commercial banks:
– Rupiah deposits in commercial banks reach 4.25%
– Foreign exchange (forex) deposits are at 2.25%
Rural Bank (BPR):
– Rupiah deposits reach 6.75%
Also Read: Difference between fixed deposit and savings account in Indonesia
By understanding the role of the Indonesia Deposit Insurance Corporation in maintaining banking stability and protecting customer deposits, you can make smarter financial decisions. Always check the interest rates guaranteed by the IDIC to ensure the maximum security and benefits from your deposits in financial institutions.
If you want to place your funds in a deposit and are confused about choosing a deposit that offers high interest and is still guaranteed by the Indonesia Deposit Insurance Corporation, you can place your funds in Whiz's Smart Saver.
Get a 6.75% interest rate with an easy deposit opening process, and rest assured, it is guaranteed by the IDIC because Whiz collaborates with banks licensed and supervised by the Financial Services Authority (OJK) and is a participant in the Indonesia Deposit Insurance Corporation (IDIC) guarantee program.
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