There are three conditions for eligibility to the DGS
There are additional guarantees in place for temporary deposits held as part buying or selling a house. These guarantees cover a maximum of EUR 500,000 up to three months after the deposit is made. This guarantee is on top of the regular EUR 100,000 guarantee.
Dutch banking authorisation
Banks in possession of a Dutch banking authorisation are covered by the Dutch DGS. These banks are listed in the Wft register.
Non-Dutch banking authorisation
International banks often operate under authorisation issued by the supervisory authority of their country of origin. This means that they partake in their own country's DGS.
TIP: Always verify this with your bank.
The DGS guarantees an amount of up to EUR 100,000 per account holder per bank. This is irrespective of the number of accounts that the customer holds. There are additional guarantees in place for deposits held as part buying or selling a house. These guarantees cover a maximum of EUR 500,000 up to three months after the deposit is made. This is on top of the regular amount of EUR 100,000.
The interest balance is reimbursed until the day of the bank's bankruptcy.
TIP:A bank can provide services under various trade names, but the guarantee scheme applies per bank, i.e. not per trade name. Do you have accounts with two institutions that belong to the same bank? Then you will receive a maximum reimbursement of EUR 100,000 for your balances on the two accounts.
TIP:Do you want to spread your savings over different banks? Always check whether each of those banks has its own banking authorisation.
TIP: Do you have accounts at two banks that have the intention to merge? Remember that these two banks will share one authorisation, meaning that a maximum balance of EUR 100,000 will be reimbursed for the sum of all accounts.
If the account is registered in the name of two or more persons (joint accounts or joint accounts requiring the signature of all account holders), the account holders will be eligible individually for compensation from the DGS. Each account holder is eligible for compensation of an equal part of the account balance, unless verifiably otherwise agreed. If the balance of the joint account of two account holders amounts to EUR 200,000, each account holder can claim an amount of EUR 100,000. If an account holder has several accounts, the maximum amount of EUR 100,000 applies to the sum of the balances on all his or her accounts.
Bank savings deposits for home purchase
Savings-based mortgages have accruing savings deposits. These savings deposits are netted against the mortgage debt when calculating the amount of compensation from the DGS. If the amount of mortgage debt exceeds the balance of the savings deposit, the savings deposit is subtracted from the debt and the account holder will not receive compensation from the DGS. Account holders will only receive compensation from the DGS for the remaining positive balance if their savings deposits exceed the amount of their mortgage debt, to a maximum of EUR 100,000.
When determining the amount of compensation from the DGS, overdrafts on current accounts will be netted. Other debts of account holders to the bank will not be netted, e.g. personal loans. Suppose an account holder has a personal loan of EUR 50,000 and a savings deposit of EUR 150,000. If the bank goes bankrupt, the account holder will be compensated to an amount of EUR 100,000 from the DGS. The remaining amount of EUR 50,000 will not be compensated, but netted against the EUR 50,000 debt, cancelling the debt.
Virtually all account holders can appeal to the DGS, but there are a few exceptions.
The DGS applies to the following natural persons:
- Minors represented by a representative
- One-man businesses. Note:if the owner of a one-man business also has a private account at the same bank, the balances of all accounts will be added up
- Managing directors and shareholders of a bankrupt bank
In principle, all bank account-holding organisations can appeal to the DGS if their bank goes bankrupt.
Examples of legal persons are
- Private limited companies (in Dutch: Besloten Vennootschap of BV)
- Public limited companies (in Dutch: Naamloze Vennootschap of NV)
Natural persons affiliated in groups such as limited partnerships (in Dutch: Commanditaire Vennootschap of CV) and partnership firms (in Dutch: Vennootschap onder Firma of VoF), can appeal to the DGS as natural persons.
A subsidiary that is a legal person itself has its own right to compensation from the DGS. The account or deposit must of course be registered in the name of that subsidiary.
The Deposit Guarantee Scheme is not intended for
- Credit unions
- Investment firms
- Insurance companies and re-insurance companies
- Investment institutions and their trustees, undertakings for collective investment in transferable securities (UCITS) and their trustees
- Pension funds
- Public authorities: the Dutch government, provinces, municipalities, water boards, and public bodies Bonaire, St Eustatius, Saba and foreign public authorities
The following products are covered by the DGS
- Payment accounts
- Savings accounts
- Fixed-term deposits
For a full overview see the product list.
The following products are not covered by the DGS
- Bank savings deposits in respect of home purchase loans
- Subordinated deposits
- Investments, e.g. securities accounts and bearer bonds
- Insurance products
- Vi rtual currencies
See also Section 29.01(2) of the Decree on Special Prudential Measures, Investor Compensation and Deposit Guarantees under the Financial Supervision Act (Wft), investor compensation and deposit guarantees under the Wft.
Is my bank covered by the DGS or not? You can always ask your bank, or look it up in the Wft register. If a bank is not included in the list, it is not covered by the Dutch DGS. The bank may be covered by a foreign DGS.
Banks covered by foreign DGSs
Foreign banks often operate under authorisation issued by the supervisory authority of their country of origin. This means that they partake in de DGS of their own country.
TIP: always verify this with your bank.
How can account holders get more information?
When a bank goes bankrupt, DNB publishes news about the DGS on its website and in the national press. You will get all the information you need about how to apply for compensation and an advance payment if necessary.
How do account holders apply for compensation?
You can log in on a dedicated website. Here you can see which compensation you are eligible for and state the account number to which the compensation payment can be made. DNB will see that the payment is made to this account number.
How long will it take for the payment to be made?
This will take twenty working days at most, starting from the day on which DNB activates the DGS. In some small number of cases this may take longer.
Applying for an advance payment
Account holders of a bankrupt bank can apply for an advance compensation payment from DNB. DNB may attach additional conditions to advance payments. If DNB approves the account holder's claim, he or she will be paid the awarded amount within five working days. The advance payment will be subtracted from the DGS payment at a later stage.
International banks active in the Netherlands are not subject to DNB's supervision and are not covered by the Dutch DGS. International banks often operate under authorisation issued by the supervisory authority of their country of origin. This means that they partake in de DGS of their own country. If such a bank goes bankrupt, account holders can call on the foreign guarantee scheme. In Europe, these guarantee schemes are harmonised in accordance with European legislation.
DNB works together with other European DGS organisations in other Member States for the operation of the deposit guarantee scheme.
Banks are obliged to inform account holders about the DGS. Banks are obliged to provide general information on the DGS on their websites. Information on specific products must be stated on the account holder's account statements. Banks are also obliged to provide information on the netting of bank savings deposits against mortgage debt. Banks are required to do this before concluding mortgage loan contracts. See also netting of debts/balances.
Information on legislation and regulations:
You will find more information on regulatory requirements on Open Book on Supervision.
A new EU Directive governing the DGS was implemented in Dutch legislation on 26 November 2015. You will find more information on this under Downloads.