---
title: "How Indonesia’s LPS bank deposit protection works"
canonical: https://panduanwarga.org/en/guides/bank-deposit-protection-lps/
language: en
category: "Everyday money"
reviewed: 2026-10-01
modified: 2026-10-01
publisher: "Panduan Warga (independent; not a government website)"
reviewed-by: "Kaiser Khan (https://panduanwarga.org/en/about/kaiser-khan/)"
---

# How Indonesia’s LPS bank deposit protection works

**How much of my bank deposit does LPS guarantee?**

LPS guarantees eligible deposits up to Rp2 billion per depositor per bank. Eligibility follows the 3T test: recorded in the bank’s books, interest not above the LPS guarantee rate, and the depositor not suspected or proven to have committed fraud. From 1 October 2026 to 31 January 2027 the guarantee rate at commercial banks is 3.75% for rupiah and 2.00% for foreign currency (PENG-7/DSPB/2026).

## What you need to check LPS deposit protection

- Deposit or savings product name, bank, balance and written interest rate.
- Account evidence and identity details if asking LPS about a failed-bank claim.

## How to check LPS deposit protection

1. **Identify the product.** Confirm money is a recorded bank deposit, rather than an investment merely sold through a bank.
2. **Apply the per-bank limit.** Combine a person’s accounts at the same bank; the limit is not per account.
3. **Check the current rate ceiling.** Compare the offered return with LPS’s latest insured-interest announcement.
4. **Keep records.** Retain account statements, terms and bank correspondence in case eligibility is reviewed.

## Costs and guarantee limits

There is no charge for the automatic protection of eligible bank deposits. The Rp2 billion limit applies per depositor per bank. Commercial-bank guarantee rates for 1 October 2026–31 January 2027: 3.75% (rupiah) and 2.00% (foreign currency); LPS sets them three times a year (January, May and September) and reviews them monthly.

## What 3T means

Recorded means the depositor’s details and deposits appear in the bank’s books; keep every transaction record. The interest received must not exceed the LPS guarantee rate. The depositor must also not be suspected or proven to have committed fraud (a banking crime).

The Rp2 billion figure does not insure every financial product. Mutual funds, shares and insurance sold through a bank are not automatically protected as bank deposits.

## If a bank fails

Protection does not imply instant access to cash. LPS reconciles and verifies records before determining claims that are payable. Use its own channels for status and objections.

A deposit offer with an unusually high rate deserves a direct comparison with the current LPS ceiling before money is placed.

## Things to check carefully

- The limit is per depositor per bank, not per account.
- A return above the guarantee ceiling can make a deposit ineligible.
- A bank’s brand does not turn an investment product into an insured deposit.

## Frequently asked questions

### Does each account at the same bank have a Rp2 billion limit?

No. The limit applies to the combined position of one depositor at one bank.

### What is the LPS guarantee rate now?

From 1 October 2026 to 31 January 2027, 3.75% for rupiah deposits and 2.00% for foreign-currency deposits at commercial banks (PENG-7/DSPB/2026, set on 29 September 2026). Deposits paying more than that are not guaranteed.

## Official sources

1. [LPS: syarat simpanan yang dijamin (3T)](https://lps.go.id/simpanan-yang-dijamin/) (accessed 2026-10-01)
2. [LPS: PENG-7/DSPB/2026 tingkat bunga penjaminan bank umum 1 Oktober 2026–31 Januari 2027](https://lps.go.id/peng-7-dspb-2026-penetapan-tingkat-bunga-penjaminan-untuk-simpanan-di-bank-umum/) (accessed 2026-10-01)
3. [LPS: informasi resmi penjaminan simpanan](https://lps.go.id/) (accessed 2026-10-01)

## Related guides

- [Open a bank account in Indonesia](https://panduanwarga.org/en/guides/open-bank-account-indonesia/)
- [Make a household budget that fits your income](https://panduanwarga.org/en/guides/household-budget/)
- [Complain about an Indonesian bank, lender or insurer to OJK](https://panduanwarga.org/en/guides/complain-about-financial-service-ojk/)

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Source: Panduan Warga, https://panduanwarga.org/en/guides/bank-deposit-protection-lps/ (reviewed 2026-10-01). General information, not legal or financial advice; current agency rules take precedence.