Deposit Guarantee Scheme

The Deposit Guarantee Scheme guarantees certain deposits held by depositors of a bank that becomes unable to meet its obligations. Depositors may claim reimbursement of their deposits, provided they meet certain conditions.

Conditions 

The conditions for reimbursement are among others:

  • You are a depositor within the terms of the Deposit Guarantee Scheme.
  • Your bank is a participant in the Deposit Guarantee Scheme.
  • The type of deposit is covered by the Deposit Guarantee Scheme.

The Deposit Guarantee Scheme covers amounts up to € 100,000 per depositor per bank, regardless of the number of deposits held. 

Who qualifies for reimbursement under the Deposit Guarantee Scheme? 

The Deposit Guarantee Scheme is available to private individuals and small companies. Small companies are those that are permitted to draw up abridged balance sheets. The Deposit Guarantee Scheme is not available to certain private persons, amongst others (i) the directors of the credit institution, (ii) holders of at least 5% of the credit institution’s capital (iii) close relatives of these people. Financial institutions , government and central administrative authorities are also excluded from reimbursement under the Deposit Guarantee Scheme.

Is my bank covered by the Deposit Guarantee Scheme?

Dutch banks operating under an authorization issued by DNB fall within the scope of the Dutch Deposit Guarantee Scheme. You may ask your bank whether it falls within the scope of the Deposit Guarantee Scheme. You may also check the Register of supervised undertakings on this website. The Register of supervised undertakings contains a complete list of banks that are covered by the Dutch Deposit Guarantee Scheme. If your bank is not in the Register of supervised undertakings, it is not covered by the Dutch Deposit Guarantee Scheme.

DNB can only inform you whether a certain bank is covered by the Deposit Guarantee Scheme. However, not every product is covered by the Deposit Guarantee Scheme. If you would like to know whether a certain type of deposit is covered by the Deposit Guarantee Scheme, please contact your bank.

Electronic money institutions that are not banks as well, are not covered by the Deposit Guarantee Scheme.

Foreign banks established in other Member States of the European Union, Liechtenstein, Norway or Iceland and operating a branch in the Netherlands, fall within the scope of the Deposit Guarantee Scheme of their country of origin.    To see whether your bank falls within this category, please take the following steps:

Your bank is covered by a foreign Deposit Guarantee Scheme if the column EU passport 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]  

The deposit guarantee scheme from the country of origin is responsible for the determination and payment of compensations under that foreign deposit guarantee scheme.

Your bank will be able to tell you more about the terms and conditions of the foreign Deposit Guarantee Scheme.  

If the Deposit Guarantee Scheme in the country of origin provides more limited cover than the Dutch Deposit Guarantee Scheme, the branch concerned may opt to participate in the Dutch Deposit Guarantee Scheme for supplemental cover.

To find out if a branch is a supplemental participant in the Dutch Deposit Guarantee Scheme, please follow the above-mentioned steps with regard to the Register of supervised undertakings.

What products are covered by the Deposit Guarantee Scheme?  

Nearly every payment or savings account, current account or term deposit is covered by the Deposit Guarantee Scheme. Shares are not covered, nor are most bonds. Whether subordinated deposits fall under the Deposit Guarantee Scheme will have to be assessed on a case-by-case basis. Your bank can give further information on specific products.

You may have balances in a so-called clients’ account. A clients’ account is an account held by a depositor on behalf of you (and others). An example of a clients’ accounts are bank accounts held by a notary on behalf of home-buyers etc. Balances in such accounts may, provided all conditions are met, qualify for reimbursement under the Deposit Guarantee Scheme. If the balances qualify, they will be included in the calculation of your claim.

If a deposit is for example held by, for example, a Homeowner Association (in Dutch: de vereniging van eigenaren), the Homeowner Association is usually eligible for reimbursement under the Deposit Guarantee Scheme. The Deposit Guarantee Scheme will not reimburse an individual claim for  your share in  the deposit of the Homeowner Association.

What is the maximum cover?

The Deposit Guarantee Scheme covers amounts up to € 100,000 per depositor per bank, regardless of the number of  deposits held.

What is the cover for joint accounts?

If the deposit is held jointly by two (or more) persons (in Dutch: en/of-rekening), they are each eligible for reimbursement under the Deposit Guarantee Scheme – provided all other conditions are met. Claims on joint deposit balances are divided equally among the depositors: two depositors, for example, can each claim half the balance, unless a different arrangement can be shown to apply and is known by the bank. If the balance on a joint deposit is € 200,000, each depositor can, in principle, claim € 100,000. But if a depositor has more deposits with the same bank, the maximum reimbursement of € 100,000 applies to all balances taken together.

Two examples:

  • A depositor has two deposits, with balances of € 50,000 and € 70,000. Of his total claim of € 120,000, this depositor will receive the maximum reimbursement of € 100,000 under the Deposit Guarantee Scheme.
  • Two depositors have a joint deposit with a balance of € 150,000. One of them holds another deposit with a balance of € 60,000. One depositor will receive half of the joint deposit 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 Deposit Guarantee Scheme.   

I have a deposit and a debt. What happens then?

As of 1 January 2014 tax-efficient blocked savings accounts for mortgage repayment are being netted against the corresponding mortgage debt.

A very common type is the endowment mortgage. For this type of loan, you pay interest but do not repay the loan in instalments. In addition, you pay a monthly savings premium. This premium and the interest paid are sufficient to repay the mortgage loan in full on the maturity date. This is referred to as a blocked savings account for mortgage repayment.

If the deposit guarantee scheme is activated, the credit balance of this deposit will be netted against the mortgage debt at the relevant bank or another bank. This is done by operation of law.

The mortgage will correspondingly be reduced with the credit balance on the blocked savings account for mortgage repayment.

In most cases, the credit balance on the blocked savings account will be less than the mortgage loan. This means that this balance will be EUR 0 after netting.

As an account holder of a blocked savings account you do not qualify for compensation under the deposit guarantee scheme. Any other accounts that you may have as an account holder will entitle you to compensation up to a maximum of EUR 100,000 in total.

How long will it take for me to receive compensation?  

You can expect to receive your compensation payment within 20 working days after activation of the Deposit Guarantee Scheme.  In exceptional cases, DNB can extend the payout deadline of 20 working days once by a maximum of 10 working days.

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 Deposit Guarantee Scheme.

Within a period of three months after the before mentioned announcement, you can inform DNB online about the account to which the reimbursement can be transferred.

Who funds the Dutch Deposit Guarantee Scheme? Who implements the Scheme?

In principle, credit institutions pay jointly for the Deposit Guarantee Scheme. DNB manages the Deposit Guarantee Scheme.

At present, the Deposit Guarantee Scheme is based on ex-post funding. Banks only pay if the Deposit Guarantee Scheme is invoked, i.e. if a bank is declared insolvent.