Current issues

Questions about deposit protection (FAQ)

How safe are my personal deposits at German banks?

The deposits of individuals held at German banks are well secured. If, however, a bank were to become insolvent, the following deposit guarantees become effective.

1. The statutory deposit guarantee each balance on current accounts, savings accounts, notice accounts and fixed deposit accounts. A maximum of €50,000 is guaranteed per customer per bank. With effect from 31 December 2010, it is planned to further increase the amount covered to €100,000.
   
   
2. In addition, the various branches of the banking industry, ie the private banks, the savings banks as well as the cooperative banks, each have their own guarantee schemes for their customers’ deposits. Information about these systems can be obtained from the relevant banking association.
   
   
   1. Association of German Banks (association of private banks in Germany) (German only)
   2. German Savings Banks Association
   3. German Association of Cooperative Banks
   4. Association of German Public Sector Banks
      
      
3. Additionally, the Federal Government recently stated that no saver in Germany would lose a single euro as a result of the financial crisis. The Federal Government is to act as guarantor for the deposit guarantee  schemes' ability to pay in full.

If my bank does become insolvent, how long will it take for my deposits to be repaid?

The statutory deposit guarantee envisages that deposits will generally be repaid within three months.

Is it advisable, in the light of the current situation, to withdraw my deposits in cash as a precautionary measure?

It is neither necessary nor advisable to withdraw large amounts of cash as the deposits of individuals in Germany are covered by extensive guarantees (see also point 1).

Are individuals or enterprises able to open an account at the Bundesbank?

No. Individuals or enterprises can only open an account with a commercial bank. As a central bank the Bundesbank is required to remain neutral. Therefore it is not permitted to enter into competition with the commercial banks, savings banks or the cooperative banks.

How safe are my deposits with foreign banks in Germany?

Deposits held at German branches of banks from the European Economic Area (EU member states plus Norway, Iceland and Lichtenstein) are protected by the deposit guarantee of the country in which the bank is headquartered. For branches of banks from other countries, and for all other foreign banks in Germany, the German statutory deposit guarantee applies.

If your foreign bank in Germany also participates in the voluntary deposit guarantee scheme of the Association of German Banks, your deposits are guaranteed by this scheme.

A list of the voluntary members can be obtained from the Association of German Banks.

• http://www.bankenverband.de/einlagensicherung

Are my deposits abroad safe?

Deposits held abroad are not covered by the German guarantee schemes unless they are held at a foreign branch (not subsidiary) of a German bank. There are similar deposit guarantee rules to those in Germany in all countries of the European Union (EU). You can find information on deposit guarantees in other countries at

1. http://www2.fdic.gov/iddi/
2. http://www.iadi.org/

How safe is my safe custody account?

Even in the event that a bank were to become insolvent, securities held in safe custody accounts would remain the property of the owner, ie the customer. The bank has solely held the securities in custody for its customers; the custody of the securities can be transferred to another bank.

Are securities also covered by deposit guarantees?

The statutory guarantee applies only to deposits and generally does not apply to securities. Securities are subject to the usual price risk. If the issuer of a security becomes insolvent, there is a danger that the owner of the security could lose the money he or she invested.

Is my statutory pension safe?

The statutory pension system is financed directly by current contributions from wages and salaries. It is, therefore, not dependent on the developments at individual banks or of the financial system.