Deposit Guarantee Schemes in Europe

6 October 2014, updated 2 January 2016

Deposit Guarantee Schemes compensate certain deposits (so called eligible deposits) held by depositors of a bank in the case of the bank failure. So, a deposit guarantee scheme affects both depositors and financial system:

From a depositor's point of view it is important to know:

This article summarises these details about deposit guarantee schemes in the following European countries:

Participating Credit Institutions

In all of the considered countries all credit institutions operating in these countries are obliged to participate in a deposit guarantee scheme:

A credit institution is not necessarily a bank, but any financial institution that takes deposits: it can also be a credit union, a building society, a savings and loan association.

Credit Institutions in Monaco

Credit institutions operating in Monaco participate in French deposit guarantee scheme.

Savings and Loan Associations in Estonia

According to Financial Inspection of Estonia (external ref) , Estonian savings and loan association do not participate in a deposit guarantee scheme.

Eligible Depositors

In most of the countries Deposit Guarantee Schemes covers both natural persons and legal entities:

However, in several countries the list of eligible legal entities is narrowed:

Country Eligible Depositors Non-Eligible Depositors
HR Croatia
  • natural persons
  • small entrepreneurs
  • non-profit organisations
  • medium- and large-size companies
IE Ireland
  • individuals
  • small companies
  • partnerships
  • clubs
  • associations
  • schools
  • medium- and large-size companies
LU Luxembourg
  • natural persons
  • small businesses with headquarters in the EU
  • small businesses with headquarters outside of the EU
  • medium- and large-size companies
NL Netherlands
  • natural persons
  • small businesses
  • medium- and large-size companies
SI Slovenia
  • natural persons
  • small businesses
  • medium- and large-size companies
GB United Kingdom
  • natural persons
  • small businesses
  • medium- and large-size companies

Non-Eligible Depositors

The following types of depositors are not eligible for compensation:

Covered Account Types

In the considered countries deposits in all types of accounts are covered. Exclusions from the coverage are usually made at the level of:

Several examples of the most widely used deposit accounts that are covered by deposit protection schemes:

In Czech Republic, it is additionally underlined that saving books are also covered.

Covered Account Currencies

In most of the countries, deposits made in all currencies are covered by Deposit Guarantee Schemes. In several countries, however, only EEA or EU currencies are covered:

Country Covered Currencies
AT Austria EEA currencies
BE Belgium EEA currencies
FR France EEA currencies
DE Germany EU currencies
HU Hungary EEA currencies
MC Monaco EEA currencies

EU Currencies

EU currencies are all official currencies of EU Member States.

EU EUREuro
BG BGNBulgarian lev
HR HRKCroatian kuna
CZ CZKCzech koruna
DK DKKDanish krone
HU HUFHungarian forint
PL PLNPolish złoty
RO RONRomanian new leu
SE SEKSwedish krona/kronor
GB GBPPound sterling

Because German deposit guarantee scheme covers only deposits made in EU currencies, the deposits made in non-EU currencies (for example, CHF, USD and JPY) are not covered by the German deposit guarantee scheme.

EEA Currencies

EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.

EEA currencies are all official currencies of EEA members. Switzerland is not a EEA member, but because CHF is the official currency of Liechtenstein, CHF also belongs to EEA currencies.So, EEA currencies include all EU currencies plus the following currencies:

IS ISKIcelandic króna
LI CHFSwiss franc
NO NOKNorwegian krone

In Austria, Belgium, France, Hungary and Monaco only the deposits made in EEA currencies are covered, the deposits in non-EEA currencies (for example, USD and JPY) are not covered by deposit guarantee schemes of these countries.

Compensation Amount: 100 000 EUR in Almost All Countries

In the recent financial crisis, uncoordinated increases in coverage across the European Union have in some cases led to depositors transferring money to credit institutions in countries where deposit guarantees were higher. That is why the maximum covered amount was harmonized across the European Union in December, 2010, it was set to 100 000 EUR per bank per depositor. In the United Kingdom the compensation amount is specified in pounds: it was 85 000 GBP and was lowered to 75 000 GBP since January 1, 2016.

Andorra also provides up to 100 000 EUR compensation.

San Marino, however, provides the compensation only up to 50 000 EUR.

Countries that have compensation amount other than 100 000 EUR are shown in the table below:

Country Maximum Covered Amount Maximum Covered Amount, EUR
IS Iceland 1 700 000 ISK 11,448 EUR
LI Liechtenstein 100 000 CHF 92,713 EUR
NO Norway 2 000 000 NOK 188,594 EUR
CH Switzerland 100 000 CHF 92,713 EUR
SM San Marino 50 000 EUR 50 000 EUR
GB United Kingdom 85 000 GBP 83,626 EUR

Paid Out Currency

In all countries except for Malta, compensation in paid in the national currency. In Malta the compensation is paid out in the same currency as the deposit.

Branches of Foreign Credit Institutions

Branches of foreign credit institutions participate either in the deposit guarantee scheme of the host country or in deposit guarantee schemes of their home countries. The rules of whether these branches participate in host or home deposit guarantee scheme are summarized in the table below.

Country Branches participating in host DGS Branches participating in their home DGS
AD Andorra none all branches of foreign banks
AT Austria all branches of foreign banks
BE Belgium branches of non-EEA banks branches of EEA banks
BG Bulgaria branches of non-EU banks branches of EU banks
HR Croatia all branches of foreign banks
CY Cyprus all branches of foreign banks
CZ Czech Republic none all branches of foreign banks
DK Denmark branches of non-EEA banks branches of EEA banks
EE Estonia none all branches of foreign banks
FI Finland none all branches of foreign banks
FR France branches of non-EEA banks branches of EEA banks
GE Georgia all branches of foreign banks
DE Germany branches of non-EEA banks branches of EEA banks
GR Greece branches of non-EU banks branches of EU banks
HU Hungary all branches of foreign banks
IS Iceland branches of non-EEA banks branches of EEA banks
IE Ireland branches of non-EEA banks branches of EEA banks
IT Italy branches of non-EU banks branches of EU banks
LV Latvia branches of non-EU banks branches of EU banks
LI Liechtenstein all branches of foreign banks
LT Lithuania all branches of foreign banks
LU Luxembourg branches of non-EU banks branches of EU banks
MK Macedonia all branches of foreign banks
MT Malta branches of EEA banks
MC Monaco branches of non-EEA banks branches of EEA banks
ME Montenegro all branches of foreign banks
NL Netherlands branches of non-EEA banks branches of EEA banks
NO Norway branches of non-EEA banks branches of EEA banks
PL Poland branches of non-EU banks branches of EU banks
PT Portugal branches of non-EU banks branches of EU banks
RO Romania branches of non-EU banks branches of EU banks
SM San Marino all branches of foreign banks
RS Serbia all branches of foreign banks
SK Slovakia none all branches of foreign banks
SI Slovenia branches of non-EEA banks branches of EEA banks
ES Spain branches of non-EU banks branches of EU banks
SE Sweden none all branches of foreign banks
CH Switzerland all branches of foreign banks
TR Turkey all branches of foreign banks
GB United Kingdom all branches of foreign banks

See Also