The Deposit Guarantee Scheme’s coverage extends to deposits held by which of the following groups when held at the same bank?

• A. They are not aggregated across accounts.
• B. They are aggregated across personal and business accounts with the same bank.
• C. They are aggregated only for personal accounts.
• D. They are aggregated only for business accounts.

Answer: (B)

The key idea is how the Deposit Guarantee Scheme handles multiple deposits at the same bank. All deposits owned by the same depositor at a single bank are added together to determine the protection they receive, regardless of whether the deposits are in personal accounts or business accounts. This means personal and business deposits held at the same bank count toward the same coverage limit for that bank.

That’s why aggregating personal and business accounts at the same bank is the correct approach. The protection does not apply by keeping personal and business funds separate, and it does not ignore one type of account. The scheme’s aim is to treat the total amount of deposits tied to one depositor at one bank as a whole, up to the specified limit, rather than limiting aggregation to only one kind of account.