Statutory Deposit Guarantee: Who Qualifies and What You Get
Learn how the Statutory Deposit Guarantee protects your bank savings up to a specific limit in Germany.
The Statutory Deposit Guarantee is a safety net designed to protect the money you keep in your bank accounts in the event that a financial institution becomes unable to pay out its depositors.
Who it's for
This protection is available to all bank account holders. Whether you hold a standard checking account or a savings account, you are covered under this system.
What you get
If your bank faces insolvency or failure, you are entitled to the protection of your funds. The scheme provides protection for your money up to a limit of €100,000 per customer, per bank. This ensures that a significant portion of your liquid savings remains secure even if the institution holding them cannot meet its obligations.
What it costs you
There is no cost to you for this coverage. The protection is applied automatically to your accounts by the issuing body, so you do not need to pay a fee or register separately to be included in the guarantee.
The catch to know
It is important to understand the specific limits of what is covered. This protection applies strictly to cash deposits held in your accounts. It does not extend to other types of assets held within a custody account, such as stocks or ETFs. If you hold investments like these, they are not part of this specific deposit guarantee.
How to apply
- Verify that your money is held in a bank account within the country.
- Check with your financial institution to ensure they are covered by the statutory protection.
- If a bank failure occurs, follow the instructions provided by the issuing body to claim your protected funds.