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HKSI PrepStudyingPaper 1
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Mr Choi holds the following at the Hong Kong office of Lion Rock Bank, a licensed bank and Scheme member. Which are protected deposits under the Deposit Protection Scheme? I. A Hong Kong dollar savings account. II. A two-year US dollar time deposit. III. An equity-linked deposit whose return depends on a share price. IV. A six-year Hong Kong dollar time deposit.
I and II only. Conventional deposits in any currency placed with a Scheme member's Hong Kong office are protected, so the savings account and the two-year US dollar deposit qualify; compensation is paid in Hong Kong dollars. Cap. 581 Sch. 1 s.1 excludes a structured deposit, so the equity-linked deposit (III) is not protected, and a term deposit whose agreed term exceeds 5 years, so the six-year deposit (IV) is not protected. Sets that add III treat an investment product as a plain deposit; sets that add IV ignore the 5-year cut-off. The limit is HK$800,000 per depositor per Scheme member (s.27, from 1 October 2024). Source: Deposit Protection Scheme Ordinance (Cap. 581) s.27 and Sch. 1 s.1; Hong Kong Deposit Protection Board FAQs (dps.org.hk) (as at October 2026).
Candidates think foreign currency deposits are excluded, or that every time deposit is protected whatever its term.
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