Your Money Protected or Not? A Quiz [SPONSORED]

If you’re like me, you probably have your money all over the place:

• In bank accounts (plural, because I have a few accounts with a few banks)
• In various e-wallets and prepaid cards,
• ‘Borrowed’ from legal entities (ie credit cards and loans) or illegal entities (ah long money lenders),
• In ‘future money’ like insurance/takaful payouts,
• In various investment accounts,
• In physical forms like gold or property or high-value collectables,
• With your friend who promised to pay you back soon,
• In actual wallets (almost forgot about this one. Cashless trend is still going strong)
• And more.

So my question to you today is… do you know what kind of protection is available for each of those listed? How sure are you that you get to access your money when you need to use it?

Wait huh, you might think, of course your money should be accessible, the financial ecosystem in Malaysia is good, right? (it is), I don’t need to worry, right? (mostly you don’t… but you should still know because this concerns YOUR money).

Take this quiz to test your understanding of your money’s protection – which is protected by PIDM and which isn’t. Have a look at the three scenarios, including one of Future You (surprise! You’ve reached financial freedom and are a multi-millionaire!)

Quiz #1 – How Protected is Kay’s Money?

Scenario 1: Kay, 24, Single, Executive

Kay’s money situation:

Can you guess the ones protected by PIDM?

Quiz #2 – How Protected is Ell and Bee’s Money?

Scenario 2: Ell and Bee, both 30, Married Couple, Own Business

Ell and Bee’s money situation:

Can you guess the ones protected by PIDM?

Quiz #3 – How Protected is Future You’s Money?

Scenario 3: Future You, 40, Hit Financial Freedom!

Future You’s money situation:

Can you guess the ones protected by PIDM?

Does that mean… not PIDM member = no protection for my money?

I didn’t say that. Usually (but not always), legally-established financial companies that are not PIDM members do put in some measures in place to ensure safety, because hey, good reputation helps with business and they want your business correct not. They are also governed by strict laws and regulations by BNM and Securities Commission.

However, if anything happens, the returning-of-funds-back-to-you may not be as automatic as PIDM, in which they already have a system in place should a member bank or insurer member be going bankrupt. PIDM-insured funds will be given back to you even before the (long) winding up process is completed.

For non-PIDM-insured funds? There are other protective measures – for example, savings in ASB, BSN and Tabung Haji are guaranteed by the government. Know your rights as a financial consumer when placing funds with a non-PIDM member institution, and only do so if you’re comfortable with the risks.

Therefore, as someone who is responsible for your own money management, it’s not a bad idea to plan your deposits and insurance/takaful around maximising PIDM’s protection. Best case scenario, nothing happens, life goes on as usual.

Worse case situation, you’ll get your deposits and benefits faster and automatically. Currently, 97% of depositors in Malaysia – the remaining 3% includes people in Scenario #3 – are fully protected by PIDM (which is a fully FREE service btw).

Let me know in the comments section how you did in the quiz. Did you get the scope of PIDM’s protection right? This concerns your money, and Future You should know this!