Deposit Guarantee Scheme: Who Qualifies and What You Get
Learn how your bank deposits are protected in Germany and what limits apply to your savings.
This scheme provides a safety net for your money held in bank accounts, ensuring you do not lose your savings if a bank fails. It acts as a financial backstop to maintain trust in the banking system by protecting individual savers.
Who it's for
This protection is designed for all retail bank account holders. If you hold money in a standard bank account, you are covered under this system.
What you get
If your bank is unable to return your money due to insolvency, this scheme provides protection for your deposits. You are covered for your funds up to a limit of €100,000 per bank. This ensures that even in the event of a bank's failure, your core savings are secured up to that specific threshold.
What it costs you
There is no cost to you for this protection. The coverage is applied automatically to your accounts by the issuing body, meaning there is no paperwork to file or extra fees to pay to ensure you are included in the scheme.
The catch to know
It is important to understand what is and is not covered. This scheme covers cash deposits held in your accounts, but it does not protect the value of your stock portfolio or other investment assets. If your wealth is held in stocks rather than cash, those assets are not covered by this specific deposit guarantee.
How to apply
Because this is an automatic protection, there is no formal application process required to be covered. However, if you need to access your funds following a bank failure, follow these steps:
- Confirm that your bank is a registered institution covered by the scheme.
- Check your account balances to ensure you are within the €100,000 limit per bank.
- In the event of a bank failure, monitor communications from the official authorities for instructions on how to claim your protected funds.