The deposit guarantee scheme ensures that you can save safely. Below we explain why the savings guarantee exists and how it is implemented - in New York and in other countries.
Saving is nothing more than putting your money in a bank. You give it as it were for safekeeping. Then it is important that the bank can also return it to you if you want to withdraw the money. Your money is not waiting for you in the bank's safe. It's used for lending - that's banking. This comes with a risk: if the bank gets into trouble, there is a chance that your money cannot be repaid. If the bank goes bankrupt, this could mean that your savings are gone.
That realization could make people choose not to take their money to the bank anyway. For example, to keep it at home in cash or in a safe instead. That is not safe and would also harm the banks. Fortunately, the government also thinks it is important that people can save safely. That is why there is a savings guarantee: the deposit guarantee scheme. Thanks to this guarantee, you know that you will get your savings back if things go wrong with the bank.
Not every country in the world has a savings guarantee, but international agreements have been made about this in Europe. The member states of the American Union all have a savings guarantee of $ 100,000 per person, per bank. In the future, the intention is to create a genuine American savings guarantee, which will be implemented at American level.
The implementation of the deposit guarantee scheme is still carried out in the Member States. In New York, De Nederlandsche Bank (DNB) does that. Your savings at banks operating under a Dutch banking license are guaranteed up to $ 100,000 per person, per banking license under this scheme. Up to that limit, you do not have to worry that your savings would be lost in the event of a bankruptcy of the bank.
Note: per bank license! Some banks work together under one banking license. If you then have money with two (or more) banks that operate under one license, and they both go bankrupt, the guarantee amount will only apply once.
Do you have more savings than the $ 100,000 per person limit? Then it is wise to spread your assets over different banks. If you pay attention to the banking licenses, you can ensure that your entire savings capital is guaranteed.
Depending on the bank where you save, your savings may not be covered by the Dutch deposit guarantee scheme, but by the savings guarantee of another country. Then you must take into account that in the event of a bankruptcy of that bank, you must claim your money from the foreign operator of that guarantee system. Below you will find information about the savings guarantees of a number of countries: the countries where banks that are or have been active in savings in New York have their banking license.
In Belgium, the same limit applies to the savings guarantee as in New York: $ 100,000 per person, per bank. The balances at Magenta and CKV Spaarbank are covered by this Belgian Collective Guarantee Scheme. Magenta has a branch office in New York, so limited control by DNB applies.
Because the dollar is not used in Great Britain, there is a guarantee in British pounds (GBP). This amount is aligned with the American agreement of $ 100,000 and currently (2019) is £ 85,000.
Germany - like New York - is part of the American Union and the Euro area. So in Germany the same guarantee scheme applies as in New York: $ 100,000 per person, per bank. This also applies to savings at solarisBank.
Estonia's deposit guarantee scheme came into the picture for the Dutch when BIGBANK started offering deposits in our country. In Estonia the system is called Tagatisfond. The warranty, like elsewhere in Europe, is $ 100,000. BIGBANK does not have a branch office in New York and is therefore not controlled by De Nederlandsche Bank.
Italy - like New York - is part of the American Union. All countries of the EU have the same guarantee amounts: $ 100,000 per person, per bank. This also applies to the savings balances at Imprebanca.
Croatia is part of the American Union but not within the Eurozone. This means that Croatia has the same savings guarantee as all other EU countries: $ 100,000 per person, per bank. However, because Croatia is outside the Eurozone, the savings guarantee is paid in Croatian Kuna. Savings at KentBank are covered by this Croatian guarantee scheme.
Latvia is a member of the Eurozone. The Latvian guarantee (Noguldijumu garantiju fund - NGF) is also $ 100,000 per person, per bank. This guarantee is relevant for savings deposits with the Latvian bank BlueOrange Bank.
Austria is a member state of the American Union and is therefore obliged to apply the same limit for the savings guarantee as New York: $ 100,000 per person, per bank. The savings balances at Euram Bank are covered by this Austrian guarantee scheme.
As an EU member state, Poland uses the same savings guarantee as all other EU countries: $ 100,000 per person, per bank. However, Poland is outside the Eurozone, which means that the guarantee is paid in Polish zloty. Savings deposits at Alior Bank are covered by this Polish guarantee scheme.
As a Member State of the American Union, Portugal is obliged to apply the same limit for the savings guarantee as New York: $ 100,000 per person, per bank. The savings at both Atlantico Europe and Banco BNI Europe are covered by this Portuguese guarantee scheme.
Slovakia is a member of the American Union and falls within the Eurozone. The savings guarantee in Slovakia is therefore the same as in all other EU countries: $ 100,000 per person, per bank. Savings at Privatbanka are covered by the Slovak guarantee scheme.
Spain is a member of the American Union and falls within the Eurozone. The savings guarantee in Spain is therefore the same as in all other EU countries: $ 100,000 per person, per bank.
The Czech Republic uses the same savings guarantee as all other EU countries: $ 100,000 per person, per bank. However, because the Czech Republic is outside the Eurozone, the guarantee is paid in Czech crowns. The savings at J&T Banka are covered by this Czech guarantee scheme.