Has a deposit insurance ever failed

Compared to the private banks, the systems for securing customer deposits are more effective Savings banks as well as Volks- and Raiffeisenbanken At an earlier point: the principle of bank security is intended to prevent a member from becoming insolvent at all. As a result, customers' deposits are insured to an almost unlimited extent. Another effect of this institutional security: it also covers bearer bonds of the affiliated banks and savings banks, for example listed bonds and certificates.

The Deposit protection fund of private banks replaces customer deposits after the insolvency of an associated institution beyond the statutory deposit insurance. However, the member banks of the voluntary deposit insurance will gradually reduce the maximum amount of the replacement payment in the coming years. As of January 1, 2025, the lowest security limit will be 437,500 euros if the bank in question has the legal minimum capital of five million euros. Other banks have higher equity, so their protection limit is also higher.

Find out whether your bank has such a private security system, which products and up to what amount of money are protected by it.

In the past, the private security systems have always intervened in the event of difficulties at individual institutions. But there is - in contrast to the statutory deposit protection - no enforceable legal claim against this voluntary protection scheme.

Savings banks

  • Security system: Statutory deposit protection, as well as voluntary: multi-level, decentralized institute protection
  • Protected customers: all, since the entire institute is covered
  • Protected forms of investment: Money in current accounts, overnight money, fixed-term deposits, bearer bonds and other liabilities of the institutes to their customers
  • Maximum amount: theoretically unlimited

 

Cooperative banks

  • Security system: Statutory deposit protection, as well as voluntary: multi-level, decentralized institute protection
  • Protected customers:all, since the entire institute is covered
  • Protected forms of investment:Money in current accounts, overnight money, time deposits, bearer bonds and other liabilities of the institutes to their customers
  • Maximum amount:theoretically unlimited

 

Private banks

  • Security system:statutory deposit insurance, as well as voluntary: possibly private deposit insurance
  • Protected customers: Statutory deposit insurance: private individuals, partnerships, small corporations, private deposit insurance: all non-banks
  • Protected forms of investment: Money in current accounts, overnight money, fixed-term deposits, savings books and similar deposits. No bearer bonds (bonds, certificates)
  • Maximum amount:Statutory deposit protection: 100% of the deposits up to 100,000 euros, also 90% of the liabilities from securities trading up to 20,000 euros, private deposit protection: 30 percent of the liable equity of the bank (per customer)