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?

Under the Deposit Guarantee Scheme, only your deposit at the bank is taken into account. Depositors of a failed bank may claim up to €100,000 each. In order to receive this reimbursement, you will have to declare that you will not make use of the possibility to set-off a credit balance in a deposit account against a debit balance.  Current law prescribes such a statement. If you do not provide this statement, DNB will not be able to reimburse.

Because no set-off takes place, your debt will still exist. The liquidator will handle this.

The statement only concerns the amount that you will receive as reimbursement  under the Deposit Guarantee Scheme. The maximum amount is €100,000.

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.

As of 1 July 2015, the Deposit Guarantee Scheme will be funded ex ante. This means that banks will be required to pay a quarterly contribution into a fund for the Deposit Guarantee Scheme. If the Deposit Guarantee Scheme is invoked, the fund will pay out. If the fund does not contain sufficient resources, the remaining costs will be apportioned among the banks in line with the present system.How should you file your claim for compensation?   

The Deposit Guarantee Scheme is activated when a bank fails. Immediately afterwards, DNB will announce on its website and in newspaper advertisements how to file claims under the Scheme.