If a bank plunges into financial turbulence, the deposit guarantee scheme protects account holders. To coincide with World Savings Day (Weltspartag) on 31 Ocotber, the FMA’s “Let’s talk about money” series for consumers explains how this protective mechanism works.
All banks in the European Economic Area (EEA) are required to be members of a deposit guarantee scheme. They are required to regularly pay into this scheme, so that the system is equipped if there is a pay-out event.
A pay-out event occurs if bankruptcy proceedings are opened against a bank, where an official payment stop is ordered, or where an official payment stop is ordered. Transactional accounts (such as current accounts, student accounts and pension accounts), savings passbook accounts and savings accounts, securities clearing accounts and building savings contracts are covered.
The deposit as well as any interest accrued is guaranteed up to the amount of EUR 100,000 per depositor and bank. In certain cases, an increased deposit guarantee of up to EUR 500,000 applies for up to 12 months, such as for credit balances from the sale of private residential property or from a severance pay-out. The pay-out occurs as a rule within seven working days. For the pay-out the deposit guarantee facility requires account details, but it is not necessary to apply for a pay-out.
Link to “Let’s talk about money”
The current edition of “Let’s talk about money” is available for download in PDF format in German only from the FMA’s website at: redenwiruebergeld.fma.gv.at/helm-und-gurt-fuers-geld
All other editions can be found at: redenwiruebergeld.fma.gv.at/en
Information about deposit guarantee pay out events that have occurred can be found on the Einlagensicherung Austria website at: einlagensicherung.at/en
Journalists may address further enquiries to:
Boris Gröndahl (FMA Media Spokesperson)
Telephone: +43 (1) 249 59-6010
Mobile: +43 676 8824 9995
E-Mail: [email protected]