South Africa has had real, operating deposit insurance since 1 April 2024, run by the Corporation for Deposit Insurance (CODI), a subsidiary of the South African Reserve Bank. It protects qualifying deposits up to R100,000 per bank, automatically, with no form to fill in if the worst happens. Here is exactly what that covers, what it does not, and what happens to money above the limit.
What is actually covered
CODI protects qualifying deposits up to R100,000 per depositor, per bank — covering both the principal amount and any interest earned. Covered products include current and transactional accounts, term and notice deposits, ordinary savings accounts, Shariah-compliant Islamic products structured as Wadi'ah, Qard or Murabaha, and tax-free savings accounts (see our TFSA guide for how those work). It does not cover investment accounts, unit trusts, shares, commodities, credit card balances, overdrawn amounts, or electronic money products — those carry a different kind of risk entirely and sit outside this scheme.
Per bank, not per banking group — and it adds up if you spread your money
The R100,000 limit applies separately at each bank you use, not once across your total banking relationships. If you hold savings at three different banks, you get up to R100,000 of protection at each one — R300,000 in total coverage across the three. The trade-off runs the other way inside a single bank: multiple accounts you hold there — a savings account and a notice deposit, say — are added together and share one combined R100,000 limit at that bank, not a separate limit each.
Who actually qualifies
Individual depositors qualify automatically, including minors, sole proprietors, foreign nationals, and members of stokvels, trade unions and charitable organisations. Financial institutions themselves (banks, insurers, pension funds) and government entities are excluded from cover.
What actually happens if a bank fails
If a member bank is placed into liquidation, CODI is required to reimburse qualifying depositors within 20 business days — and depositors do not need to submit a claim to get it; the payout is automatic. Money above the R100,000 limit is not simply lost, but it is not fast or guaranteed either: the excess becomes a claim against the failed bank's estate through the ordinary liquidation process, which can take considerably longer and may not recover the full amount, depending on what the estate is actually worth once it is wound up.
Which banks in our directory are covered
Membership of CODI is automatic and compulsory for every bank registered in South Africa — commercial banks, mutual banks, co-operative banks and local branches of foreign banks all qualify, which in practice covers essentially every bank in our directory. One honest wrinkle worth knowing about: GoTyme Bank's own site states its deposits are CODI-insured under company registration 2015/231510/06, while the official CODI member list currently shows an entity under the name "TymeBank Limited" rather than "GoTyme Bank" — consistent with a bank having rebranded and the regulator's published list not yet catching up to the new trading name. It is a good reminder to check a bank's own regulatory disclosure directly rather than assume coverage from a list that can lag a rebrand.
Frequently asked questions
Does CODI cover my investment account or unit trust?
No. CODI only covers qualifying deposit-type products — transactional, savings, term/notice and tax-free savings accounts. Investment accounts, unit trusts and shares carry market risk and sit outside this scheme entirely.
If I have R150,000 in one bank and it fails, do I just lose R50,000?
Not automatically lost — but only R100,000 is fast and guaranteed, paid within 20 business days with no claim needed. The remaining R50,000 becomes a claim against the failed bank's estate through liquidation, which can take much longer and is not guaranteed to pay out in full.
Do I need to apply to get reimbursed?
No. Reimbursement for qualifying deposits up to R100,000 is automatic once a bank is placed into liquidation — you do not file a claim to receive it.
Compare real savings products — including which ones are tax-free — across our deposits category, or see the full list of covered institutions in our bank directory.