Deposit Insurance and Investor Compensation

  1. Up to What Limit Are My Deposits Insured?

    DenizBank is a member of the Austrian deposit insurance. The deposits of natural and non-natural individuals are secured up to a maximum of € 100,000 (per depositor and bank). For certain special conditions, such as "temporary limited covered deposits" (E.g. Deposits from Real Estate transactions of privately used Residential Real Estate; payments of insurance benefits or compensation for criminal offenses; payments which fulfill the statutory purposes - more detailed information can be found on the homepage of the Deposit Insurance, can be made within 12 months after the insurance claim application at the Protection Scheme executed that the deposit is to be reimbursed up to an amount of EUR 500,000.00.

  2. Is the Deposit Insurance Valid per Account / Savings Account or per Person?

    The deposit guarantee always applies per depositor (individuals /non-natural persons), regardless of how many accounts or savings books the depositor has at the institution in question.

  3. I Have an Account / Savings Book at Bank X and Another One at Bank Y. What Happens if Both Banks Go Bankrupt?

    For individuals, the deposit guarantee for deposits at any bank is up to € 100,000, - per depositor per bank.

  4. Is there a Deductible?

    With the deposit insurance, there is no deductible (either for individuals or for non-natural persons). When it comes to investor compensation, a deductable in the amount of 10% of the claim is valid for non-natural persons. Further information on the topic of investor compensation is available at the legal regulations (§§ 44 ff ESAEG) and the homepage “”.

  5. Which Deposits Are Covered by the Deposit Guarantee?

    All balances on accounts or savings books, such as salary and pension accounts, other current accounts, fixed deposits, capital or overnight savings accounts are covered by the deposit guarantee. Credit balances in foreign currencies will be made in Euro in the event of occurrence of deposit guarantee case (Conversion rate is the exchange rate on the date of the hedge).

  6. What about the Deposits of Minors?

    Deposits of underage persons are also subject to the statutory deposit insurance.

  7. What about Funds on Trust Accounts?

    By trust accounts, where the assets are held by individuals other than the invester, the payment is made after the legitimacy and proof of the claim to ensure that the maximum amount is used for the benefit of the beneficial owner. Among the occupational groups which may open the trust account fall: lawyers, notaries, trustees, property managers and brokers, architects and engineering consultants.

  8. Can a Bank Escape from the Protection Scheme?

    No, a withdrawal from the relevant protection scheme is only permitted if the institution concerned joins a different protection scheme, which means it changes the sector. The statutory guarantee must be ensured without interruption in any case, as no guarantee would lead the bank to lose its license.

  9. What Types of Protection Schemes are there in Austria?

    Since 01.01.2019 there are two protection schemes in Austria:

    • „Einlagensicherung AUSTRIA Ges.m.b.H.“ (ESA) as a uniform, cross-sectoral security scheme established at the Austrian Federal Economic Chamber
    • "Sparkassen-Haftungs GmbH" as an institution-related security system, which is officially recognized as a security institution
  10. Which Depositor / Investor Is not Secured?

    Following examples of deposits or claims are not secured (for details see § 10 Abs. 1 ESAEG):

    • Bonds of a credit institution and liabilities from own acceptances. Deposits of pension and retirement funds as well as of insurance companies and reinsurance undertakings.
    • Deposits for which the identity of the holder has never been established until the date of the occurrence of a deposit guarantee case, unless the holder takes such action within 12 months after the occurrence of a deposit guarantee case.
    • Deposits and receivables of states as well as deposits and receivables of regional and local authorities (eg, state and local)
  11. Which Credit Is Covered by the Investor Compensation?

    All claims by the investor against the credit institution, in particular:

    • Administration and custody of securities (custody business)
    • Trade of the credit institution with financial market instruments

    Returns from securities settlement (dividends, sales proceeds, redemption, etc.) are protected as deposits on a customer account within the framework of the insurance of claim up to a maximum amount of EUR 100,000.00.

    No claim to double compensation. Claims both covered deposits and safety obligated claims from securities will be compensated by the Deposit Guarantee Scheme (Section 51 (1) ESAEG).

  12. What Happens to the Securities in a Securities Account in the Event of Bankruptcy of the Depository Institution?

    As the owner of the securities kept in the securities account (stocks, bonds, mutual funds, etc.), the customer can -in the case of a bancruptcy of the custodian bank - make a claim rejection on these securities claims (in full), ie securities owned by him do not fall into the bankruptcy of the custodian bank. Securities which are kept in the securities account are not secured themselves (there is the risk of bankruptcy of the issuer).

  13. Differences Between Deposit Guarantee and Investor Compensation:

    • The security ceiling
      On deposit insurance see item 1), investor compensation is unmodified and is € 20.000,- per investor (natural or non-natural person) per bank
    • The retention
      Only by investor compensation in non-natural persons, unchanged at 10% of the claim
    • Different Payment Deadlines
      In case of Investor Compensation within 3 months, in case of Deposit Guarantee within 7 working days.
    • In the event of the claim of insurance, it is allowed to refund the covered deposit at the occurrence of a deposit guarantee case without the need of an application by the investor (exception: investor compensation and temporarily limited covered deposits due to the law § 12 Austrian Banking Act).
  14. What Happens if the Protection Scheme Does not have Enough Funds?

    Each protection scheme (a single protection scheme and institution-related protection systems) has a deposit guarantee fund in the amount of 0,8% of the total amount of covered deposits, and as long as the Member Institutions require annual contributions and other contributions to prescribe to the target amount is reached.

    If the affected protection scheme detected, the reimbursement of covered deposits from the fund assets which is not included in the statutory payment periods  (see point 13)  can be secured, so the other protection schemes are immediately informed and pay these for the cover of the shortfall (§§ 18 ff ESAEG).

  15. What Happens to My Deposits and Loans in the Event of Bankruptcy of a Financial Institution?

    In the event of bankruptcy of a financial institution, the customer can compensate for its claims against the bank (eg deposit) with its liabilities to the bank (eg from loans). E.g. a loan of EUR 50,000 is offset by a deposit in the amount of € 50,000. Thus, the customer suffers no harm in such a case, as claim and liability are balanced by compensation. If the customer in the example above had no claim against the deposit insurance, a shortfall would be present.

  16. How Does One Find out which Protection Scheme Belongs to a Bank?

    The credit institutions which are committed to in accordance with § 38 ESAEG should inform their customers through the announcement in the cashier´s hall and from their home page about the regulations of deposits insurance in which protection scheme is affiliated with. Customers are informed about the deposit protection by means of the information sheet (in accordance with section 37a BWG). This information sheet is provided to the depositor at least once a year.

  17. How Does the Deposit Insurance Work for Joint Accounts?

    The deposit guarantee applies per customer (depositor), not per account. In a jointly controlled account each account holder has a basic claim for compensation.

    In principle, the assignment of the balances of the joint account is based on 1:1 allocation. However, it is free to the account holders to hand over a written regulation to the credit institute before the admission of insurance claim which deviates from the 1: 1 allocation. In the event of occurrence of a deposit, then the selected allocation key should be used for this assignment.

    Deposits in accounts of open societies (OG), limited partnerships (KG) or civil partnerships (GesbR) and foreign companies corresponding to these kinds of companies are always treated as deposits of a person, even if there is more than one shareholder. In this case, the maximum payment amount is therefore EUR 100,000 in total.

  18. Security Deposits

    Securities from the Custodian bank will only be kept and always remain in the property of the customer. With the request, the securities will be followed or transferred to another depot.

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