DenizBank AG

FAQ deposit insurance

  1. Up to what Limit Are My Deposits Insured?

    DenizBank is a member of the Austrian deposit insurance. Since 01.01.2010, deposits of individuals are secured up to a maximum of € 100,000 (per depositor and bank).

  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 / SavingsBook 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. Since 01.01.2011, deposits of non-natural persons are also secured up to an amount of € 100,000, - .

  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. Deposits in accounts of open societies (OG), limited partnerships (KG) or companies incorporated under civil law (GesbR) or foreign companies corresponding to one of these societies or companies are always treated as deposits of a person, even if several people are shareholders of it.

  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 denominated in Euro or the currency of an EEA Member State (= EU Member States and Iceland, Liechtenstein and Norway)  are covered by the deposit guarantee. Thus, are for example USD accounts not covered by deposit insurance. Regarding Swiss Franc (CHF): Switzerland is not a member of the EEA, but since the CHF is the official currency in Liechtenstein (EEA) as well, deposits in CHF fall under the deposit guarantee.

  6. What about the Deposits of Minors?

    Deposits of underage persons are also subject to the statutory deposit insurance. Here, the legal representative can raise a claim for the minor at the protection scheme. However, the insurance institution may insist on making the payment to a trustee account.

  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 licence.

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

    According to the sectoral structure of the Austrian banking industry savings banks, banks, Raiffeisen, Volksbank and the country's mortgage banking institutions have their own protection schemes. These are:

    • Sparkassen-Haftungs Aktiengesellschaft
    • Einlagensicherung der Banken & Bankiers Gesellschaft m.b.H.
    • Österreichische Raiffeisen-Einlagensicherung reg. Gen mbH
    • Schultze-Delitzsch-Haftungsgen. Reg .Gen mbH
    • HYPO-Haftungs Gesellschaft m.b.H.
  10. Which Depositor / Investor Is not Secured?

    Following examples of deposits or claims are not secured (for details see § 93 BWG 5)

    • For example deposits or claims that are not denominated in Euro or national currency of an EEA Member State (see section 5)
    • Deposits of parties related to credit institutions (eg management and supervisory board members, auditors, officials in major affiliates)
    • Deposits and assets of close relatives (very broad term) and others, only if they are acting on behalf of bank related parties (Own assets of close relatives, however, is subject to the deposit insurance)
    • Deposits and assets of companies that meet the criteria for major corporations in terms of § 221 para 3 UGB
    • Deposits and receivables of states as well as deposits and receivables of regional and local authorities (eg, state and local)
  11. 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 ...), 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).

  12. Which Credit Is Covered by the Investor Compensation?

    Special case of returns from the securities clearing: If returns from securities (dividends, sales proceeds, redemption) are credited to an interest-bearing account at a financial institution, they are covered by deposit insurance. If the credit of these returns, however, is credited to an account with no interest, they are subject to investor compensation.

    Deposit Guarantee and investor compensation can be present side by side (additive).

  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
      Investor compensation has a payment deadline of 3 months, whereas deposit guarantee has a payment deadline of 20 to max. 30 working days
  14. What Happens if the Protection Scheme Does not have Enough Funds?

    The means of protection funds come in part directly by the state and partly by the banks. As the contribution obligation of the banks is inherently limited, it may be that these contributions are not sufficient. In this case, the state jumps a second time: by a federal guarantee for the borrowing of the protection scheme on the market. Ultimately, therefore, the state stands behind the protection scheme (§ 93a para 2 +3 BWG).

  15. How Quickly Can I Get My Money?

    Since 1 January 2011 a shortened period of 20 to 30 working days is in place. In severe cases, smaller savings of up to 2,000 euros are treated preferentially.

  16. 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.

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

    The banks are bound by the banking act to inform their customers about which protection scheme they are connected to. This information can be found in the terms and conditions. New customers must be informed in writing about the protection of depositors. Existing customers must be notified of the resignation of a protection scheme.

  18. 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. Before it comes to a payout, the beneficial ownership (in terms of source of funds) of each account holder is checked in order to make sure that through a fictitious information from multiple shareholders, the maximum payout of € 100,000 per person is not exceeded.  The balance of accounts split as such is then added to other accounts that this person already has at the bank.

    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 then one shareholder.

  19. Security Deposits

    The securities held by the bank do not fall into the bankruptcy of the bank. They will be followed by the investor and transferred to the securities account with another bank.

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