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.
Credit balances are covered held in
Credit balances are covered held by
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.
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:
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.