No 44

A helmet and safety belt for your money

Investments

Have you deposited your money at a bank and are you wondering what happens in the event of the bank plunging into financial turbulence? Deposit guarantee acts as the safety mechanism.

an illustration of a piggy bank wearing a helmet and seatbelt

All banks in the European Economic Area (EEA) are required to be members of a deposit guarantee scheme. They are required to regularly pay into this scheme, in order to be equipped for a pay-out event.

A pay-out event occurs if:

  • insolvency proceedings are opened against a bank, or
  • a supervised management procedure is ordered, or
  • where an official payment stop is ordered.

What credit balances are guaranteed?

Deposits in transactional accounts (e.g. current accounts, student accounts, pension accounts), savings passbook accounts and savings accounts, securities clearing accounts and building savings contracts.
Your deposits including interest are secured up to the amount of EUR 100,000 per depositor and bank.


In certain cases, an increased deposit guarantee of up to EUR 500,000 applies for up to 12 months, e.g. for credit balances from the sale of private residential property or from a severance pay-out.
Deposits denominated in a foreign currency are also covered.

Whose deposits are covered?

natural and legal persons’ deposits are covered irrespective of nationality, provided that you hold a deposit at the institution at the time of the pay-out event. If you are the holder of the deposit, then you are entitled to receive the pay-out. For joint accounts, all account holders have an equal claim to pay-out, unless a different distribution has been agreed in advance with the bank.

How long does pay-out take?

The pay-out occurs within 7 working days. For the pay-out you must advise the deposit guarantee facility of an account into which the pay-out is to be made, but it is not necessary to apply for a pay-out.

How are deposits treated that are held at a branch established of a bank from another EU country?

Such deposits are subject to the deposit guarantee system of the EU country in which the bank has its head office. The credit institution is required to provide you with information about the relevant deposit guarantee scheme.


Important!

If you’ve squirrelled away over EUR 100,000 at a single institution, you risk that the amount over and above EUR 100,000 may not be covered in the case of the bank’s insolvency. This also applies when the total amount is split across several accounts at the same bank. You are therefore advised to deposit your money at different banks.


A to Z of Finance:

You can find further details on the A to Z of Finance section of our website.

www.fma.gv.at/en > A to Z of Finance

Deposit guarantee facilities in Austria

Einlagensicherung Austria Ges.m.b.H.

Wipplingerstraße 34/DG 4, 1010 Vienna
+43 1 533 98 03
[email protected]
www.einlagensicherung.at

Österr. Raiffeisen-Sicherungseinrichtung eGen

Am Stadtpark 9, 1030 Vienna
+43 1 717 07-0
[email protected]
www.raiffeisen-einlagensicherung.at

Sparkassen-Haftungs GmbH

Am Belvedere 1, 1100 Vienna
+43 5 0100-28455
[email protected]
www.s-haftung.at