Conditions
The conditions for reimbursement are among others:
- You must be an accountholder within the terms of the Deposit Guarantee Scheme.
- Your bank must be a participant in the Scheme.
- The type of deposit must be covered by the scheme.
Accountholders of a failed bank may claim up to € 100,000 each.
Who qualifies for reimbursement under the Deposit Guarantee Scheme?
The Scheme is available to private individuals and small enterprises. Small enterprises are those that are permitted to publish a summary balance sheet. The Scheme is not available to certain private persons, including (i) the directors of the troubled bank, (ii) persons holding a 5% or higher equity stake in the bank and (iii) the nearest relatives of these people. Financial undertakings and public bodies are also excluded from repayment under the Scheme.
Is my bank covered by the Deposit Guarantee Scheme?
You may ask your bank if it is covered by the Scheme. You may also check the ‘Wft Register’ on this website [Wft = Wet op het Financieel Toezicht or Financial Supervision Act]. The Wft Register contains a complete list of banks that are covered by the Dutch Deposit Guarantee Scheme. If your bank is not in the Register, it is not covered by the Dutch Deposit Guarantee Scheme.
Please note that Rabobank branches, which are entered as separate licensed financial institutions in the Wft-register, currently are not listed in this overview. We are working hard to set this straight as soon as possible.
Electronic money institutions that are not banks as well, are not covered by the Scheme.
For banks from the European Union, Norway, Iceland or Liechtenstein different rules apply.
Foreign banks established in other Member States of the European Union, Liechtenstein, Norway or Iceland are covered by the Deposit Guarantee Scheme in their home country, not by the Dutch Deposit Guarantee Scheme. For this, too, you consult the 'Wft Register'. To do so, take the following steps:
- www.dnb.nl
- at the right-hand bottom of the page you see the heading 'getting started'
- click on 'registers'
- now click on 'consult register'
- then click on 'credit institutions'
- now you can conduct a search per bank.
Your bank is covered by a foreign Deposit Guarantee Scheme if the column on the left reads either
- Bijkantoor bank uit EER (2:14) [Branch office of an EEA-established bank] or
- Verrichten van diensten bank uit EER (2;18) [Provision of services by EEA-established bank]
Your bank can tell you more about the terms and conditions of the foreign Deposit Guarantee Scheme.
What products are covered by the Deposit Guarantee Scheme?
Nearly every payment or savings account, current account or term deposits is covered by the Scheme. Shares are not covered, nor are most bonds.
Clients’ account (derdenrekening) You may have funds in a so-called clients’ account A clients’ account is an account held on behalf of another or others. Examples of clients’ accounts are bank accounts held by an association of owner-occupants (VvE), a commercial partnership or by a solicitor or notary on behalf of heirs, home-buyers etc. Balances in such accounts may, on certain conditions, qualify for reimbursement under the Scheme. If it does, it will be included in the calculation of your claim.
What is the maximum cover?
The Deposit Guarantee Scheme covers amounts up to € 100,000 per accountholder per bank, regardless of the number of accounts held.
What is the cover for joint accounts?
If the account is held jointly by two (or more) persons (en/of-rekening), they are each eligible for reimbursement under the Scheme – provided all other conditions are met. Claims on joint account balances are divided equally among the accountholders: two accountholders, for example, may each claim half the balance, unless a different arrangement can be shown to apply. If the balance on a joint account is € 200,000, each accountholder can, in principle, claim € 100,000. But if either accountholder has more accounts with the same bank, the maximum reimbursement applies to all balances taken together.
Two examples:
- An accountholder has two accounts, with balances of € 50,000 and € 70,000. Of his total claim of € 120,000, this accountholder will receive € 100,000 under the Scheme.
- Two accountholders have a joint account with a balance of € 150,000. One of them holds another account with a balance of € 60,000. One accountholder will receive half of the joint account balance, i.e. € 75,000. The other has a total claim of € 135,000 (i.e. € 75,000 + € 60,000) and will receive € 100,000 back under the Scheme.
I have a savings balance and a debt. What happens then?
Savings balances and debts will generally be netted against each other. This implies that an accountholder’s debt to their bank (e.g. a mortgage loan or consumer credit) is netted against (or: subtracted from) their deposit balances (in e.g. payment or savings accounts) as each stood on the date the bank was declared bankrupt. If the outcome is positive, i.e. a net balance remains, the accountholder may claim that balance under the Scheme, up to the € 100,000 maximum.
Two examples of netting:
- An accountholder has a debt of € 100,000 and deposits totalling € 60,000. Therefore, a net debt of € 40,000 remains. The accountholder will not qualify for reimbursement under the Scheme.
- An accountholder has a debt of € 60,000 and deposits totalling € 100,000. Therefore, a net claim of € 40,000 remains. This accountholder qualifies for reimbursement under the Scheme, provided all other conditions are met.
DNB will decide in each individual case whether netting of debts and claims is possible under the Deposit Guarantee Scheme. Next to that, the accountholder may ask the bankruptcy receiver to apply (civil-law) netting.
How long will it take for me to receive compensation?
The Financial Supervision Act [Wet op het Financieel Toezicht] sets a maximum term for reimbursement of three months. Under European rules, this term is to be reduced to 20 working days. DNB and the banks are working hard to make this possible. For that purpose, both the application procedure and the manner of reimbursement are being overhauled.
How to apply for reimbursement?
When a bank fails, the Deposit Guarantee Scheme is activated. Right away, DNB will announce on its website and in newspaper advertisements how to apply for reimbursement under the Scheme.
Who pays for the Deposit Guarantee Scheme and who manages the Scheme?
In principle, the banks jointly pay for the Scheme. DNB manages the Scheme. This means that for reimbursement under the Scheme, you must apply with DNB. DNB determines the size of you claim on the basis of the failed bank’s administrative records, and makes the payment. Afterwards, DNB will apportion the costs across the banks participating in the Scheme
Who funds the Dutch Deposit Guarantee Scheme? Who implements the Scheme?
In principle, the banks jointly pay for the Scheme. DNB manages the Scheme. This means that for reimbursement under the Scheme, you must apply with DNB.
At present, the DGS is based on ex-post funding. Banks only pay if the scheme is invoked, i.e., if a bank is declared insolvent.
As of 1 July 2012, banks will be required to pay a quarterly contribution into a fund for the deposit guarantee scheme. If the scheme is invoked, the fund will pay out. If the fund is insufficient, the remaining costs will be apportioned among the banks in line with the present system.
