Deposit Guarantee Schemes in Europe

, 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, 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
 Croatia
  • natural persons
  • small entrepreneurs
  • non-profit organisations
  • medium- and large-size companies
 Ireland
  • individuals
  • small companies
  • partnerships
  • clubs
  • associations
  • schools
  • medium- and large-size companies
 Luxembourg
  • natural persons
  • small businesses with headquarters in the EU
  • small businesses with headquarters outside of the EU
  • medium- and large-size companies
 Netherlands
  • natural persons
  • small businesses
  • medium- and large-size companies
 Slovenia
  • natural persons
  • small businesses
  • medium- and large-size companies
 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
 Austria EEA currencies
 Belgium EEA currencies
 France EEA currencies
 Germany EU currencies
 Hungary EEA currencies
 Monaco EEA currencies

EU Currencies

EU currencies are all official currencies of EU Member States.

 EUREuro
 BGNBulgarian lev
 HRKCroatian kuna
 CZKCzech koruna
 DKKDanish krone
 HUFHungarian forint
 PLNPolish złoty
 RONRomanian new leu
 SEKSwedish krona/kronor
 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:

 ISKIcelandic króna
 CHFSwiss franc
 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
 Iceland 1 700 000 ISK n/a
 Liechtenstein 100 000 CHF 86 140 EUR
 Norway 2 000 000 NOK 206 776 EUR
 Switzerland 100 000 CHF 86 140 EUR
 San Marino 50 000 EUR 50 000 EUR
 United Kingdom 75 000 GBP 84 450 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
 Andorra none all branches of foreign banks
 Austria all branches of foreign banks
 Belgium branches of non-EEA banks branches of EEA banks
 Bulgaria branches of non-EU banks branches of EU banks
 Croatia all branches of foreign banks
 Czech Republic none all branches of foreign banks
 Denmark branches of non-EEA banks branches of EEA banks
 Finland none all branches of foreign banks
 France branches of non-EEA banks branches of EEA banks
 Germany branches of non-EEA banks branches of EEA banks
 Greece branches of non-EU banks branches of EU banks
 Hungary all branches of foreign banks
 Iceland branches of non-EEA banks branches of EEA banks
 Ireland branches of non-EEA banks branches of EEA banks
 Italy branches of non-EU banks branches of EU banks
 Latvia branches of non-EU banks branches of EU banks
 Liechtenstein all branches of foreign banks
 Lithuania all branches of foreign banks
 Luxembourg branches of non-EU banks branches of EU banks
 Macedonia all branches of foreign banks
 Malta branches of non-EEA banks branches of EEA banks
 Monaco branches of non-EEA banks branches of EEA banks
 Montenegro all branches of foreign banks
 Netherlands branches of non-EEA banks branches of EEA banks
 Norway branches of non-EEA banks branches of EEA banks
 Poland branches of non-EU banks branches of EU banks
 Portugal branches of non-EU banks branches of EU banks
 Romania branches of non-EU banks branches of EU banks
 San Marino all branches of foreign banks
 Serbia all branches of foreign banks
 Slovakia none all branches of foreign banks
 Slovenia branches of non-EEA banks branches of EEA banks
 Spain branches of non-EU banks branches of EU banks
 Sweden none all branches of foreign banks
 Switzerland all branches of foreign banks
 Turkey all branches of foreign banks
 United Kingdom all branches of foreign banks

See Also

Deposit Guarantee Schemes in European Territories