Deposit protection

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The credit institution must make information about its membership of a deposit guarantee scheme and about the deposit guarantee scheme available on its website as well as displaying it in its foyer. In addition there is also an standardised information form, which must be handed out to the customer prior to their concluding a contract. In the case of Internet banking, this may also be made available electronically.
The deposit guarantee scheme protects savers and account holders against losses in the event that a bank encounters severe financial problems.

Every bank in the EEA is required to be a member of a deposit guarantee scheme. Banks pay money into the deposit guarantee facility on a continuous basis. Consequently in the event of a pay-out event occurring there are already funds available and a pay-out can be made simply and quickly.

Consequently banks should be jointly liable in the event of problems via the deposit guarantee system, and the Republic of Austria and the taxpayer should no longer be required to bail out them out.

a pay-out event occurs when one of the following reasons exists:

  • a bank is not in the position to repay deposits that are due, or
  • insolvency proceedings are initiated towards a bank, or
  • where a supervised management procedure is imposed; or
  • where an official payment stop is imposed.

Credit balances are covered held in

  • transactional accounts such as current accounts, salary accounts, student accounts, pension accounts,
  • savings books and savings accounts e.g. term deposit accounts
  • securities clearing accounts (but not however securities portfolios) and
  • savings and loan contracts (Bausparverträge).
  • Deposits including interest up to an amount of EUR 100,000 per eligible depositor and bank are covered. The depositor is the holder of a credit balance.
  • In certain cases a higher level of deposit guarantee coverage applies for a maximum of 12 months. This applies e.g. for high credit balances arising from the sale of private residential property or from a severance payment.
  • Deposits held in foreign currencies are also covered.

Credit balances are covered held by

  • natural persons, irrespective of their nationality; as well as
  • by legal entities (GmbH, WEG, OG, KG…).

The holder of the deposit (for example the account holder) is always authorised for the pay-out from the guarantee fund.

Where there are several holders (joint account) then all holders are authorised to equal shares. In the case of a joint account you may also advise your bank prior to the occurrence of a pay-out event in writing about how a deposit is to be split between the different holders.

  • Between 1 January 2019 and 31 December 2020: 15 working days from the pay-out event
  • Between 1 January 2021 and 31 December 2023: 10 working days from the pay-out event.
  • From 1 January 2024 the pay-out periods are intended be harmonised throughout Europe and should only take 7 days.

For a pay-out to be made, the depositor must inform the deposit guarantee facility that they hold an account, but it is not necessary for an application to be made.

Deposits that you hold at the Austrian branches of banks from other EU Member States, are subject to the protection systems in place in the EU Member State in which the bank holds its licence.

While deposit guarantee schemes are by and large equivalent in most EU Member States, there may however still be individual differences between systems. A credit institution is required to provide you with a copy of an information document about the valid deposit guarantee scheme.

From 1 January 2019 there are two deposit guarantee facilities in Austria, namely:

  • Einlagensicherung AUSTRIA GmbH housed in the Austrian Economic Chambers (Wirtschaftskammer Österreich), into which the previously existing deposit guarantee facilities of the Banken und Bankiers trade association, the Raiffeisen banks, the Volksbank sector and the mortgage banks have been merged

as well as the

The legal provisions about deposit guarantee schemes and investor compensation can be found in the Deposit Guarantee Schemes and Investor Compensation Act.