Before You Start
- Basic understanding of bank accounts and savings products
- Awareness of your current bank(s) and account balances
- Interest in protecting savings above €100,000
Time needed: 20–30 minutes
What you'll need: Online access to your bank(s), calculator or spreadsheet, and (optionally) access to a European online broker such as Trade Republic or N26
Every European saver has heard about the €100,000 deposit guarantee, but few know exactly how it works in practice—or what happens if your bank collapses. This tutorial covers the deposit guarantee Europe landscape in detail, including the EU directive, national differences, real-world scenarios, and practical strategies to secure your money above the protected threshold. By the end, you’ll know exactly how to check your coverage, claim compensation if needed, and split funds smartly across accounts and banks.
Step 1: Understand the European Deposit Guarantee Scheme (DGS)
What to do: Learn the basics of the EU-wide deposit guarantee and how it’s implemented in your country.
- Read the official EU DGS summary.
- Check which national authority manages the scheme in your country (e.g., FGDR in France, EdB in Germany, FSCS in the UK for GBP accounts).
Why it matters: The core rule is simple: each depositor is protected up to €100,000 per bank, per person (or the equivalent in local currency). This applies to nearly all savings, current, and term deposit accounts at EU-licensed banks. But the details—such as how quickly you’re paid, and whether joint accounts are covered—can differ by country.
What can go wrong: Not all banks or accounts are covered. “Passporting” banks (e.g., a Lithuanian-licensed fintech offering accounts in Germany) are covered by their home country’s scheme, not the host country. Some products (e.g., e-money wallets) may not be covered at all.
Pro Tip
Always check your bank’s license and DGS country. For example, N26 (licensed in Germany) is covered by EdB, while Revolut’s EUR accounts are covered by the Lithuanian scheme.
Step 2: Identify Which Accounts and Currencies Are Protected
What to do: Make a list of all your EUR (and other currency) accounts in Europe. For each, note:
- The bank’s registered country and DGS
- The account type (current, savings, fixed-term, etc.)
- The current balance
- If it’s a joint or individual account
Why it matters: Only eligible deposits (cash in bank accounts) are protected. Investment products (ETFs, stocks) are not. Joint accounts typically double the coverage (up to €200,000 for two people), but check your country’s rules. Non-EUR currencies are usually covered up to the equivalent of €100,000, converted at the time of a bank failure.
What can go wrong: Funds held in payment/e-money institutions (e.g., PayPal, Wise) are not always protected by DGS. Some fintechs offer “accounts” that are not true bank deposits.
Pro Tip
For a full list of covered banks in your country, visit your national DGS website (e.g., FGDR France: covered accounts).
Step 3: See What Happens if Your Bank Fails
What to do: Understand the process for compensation if your bank becomes insolvent.
- The supervisory authority officially declares your bank “in default.”
- The DGS is triggered and begins compensation.
- You are compensated automatically, usually by bank transfer, within 7–10 working days (maximum 20 working days in exceptional cases).
Why it matters: Knowing the timeline and process helps you avoid panic. The DGS pays out per person, per bank, so if you have €150,000 at one bank, you’ll receive €100,000 back. The remaining €50,000 may be lost or recovered only after years of liquidation.
What can go wrong: If your contact details are outdated, you may have trouble receiving funds. If your total per bank exceeds €100,000, the excess is unsecured. In rare cases, complex accounts (trusts, business accounts) may require extra documentation.
Pro Tip
Some countries (e.g., Germany, Austria) offer extra voluntary protection for certain banks, but this is not guaranteed by law. Always check if your bank participates in extra schemes.
Step 4: Claiming Your DGS Compensation
What to do: If your bank fails, you typically do not need to apply—the DGS contacts you directly. But you should:
- Ensure your bank has up-to-date contact and IBAN details
- Watch for official DGS communication (email, post, or SMS)
- Follow instructions to confirm your identity and provide a payout account if necessary
Why it matters: Delays are rare but possible if your information is missing or incorrect. Act quickly if you receive DGS instructions.
What can go wrong: Scammers may try to impersonate the DGS. Never provide sensitive information via email unless you have verified the sender (check the official DGS website for contact details).
Pro Tip
Save your account statements regularly. In a bank failure, you may need to prove your balance, especially for large or recently deposited sums.
Step 5: Strategies to Protect Savings Above €100,000
What to do: If your total cash savings exceed €100,000, consider spreading funds across multiple banks—each with a separate DGS license.
- Open accounts at different banks (e.g., N26, ING, Deutsche Bank, BNP Paribas)
- Keep no more than €100,000 per person, per bank
- For joint accounts, up to €200,000 is protected (check your country’s rules)
- Consider using platforms like Raisin or Weltsparen to access savings accounts at multiple European banks with one login
Why it matters: The €100,000 limit is per bank, per person—not per account or per branch. Spreading funds ensures all your savings are covered by the DGS.
What can go wrong: Some banks operate under a single license covering multiple brands (e.g., ING Direct and ING Germany). If you hold €80,000 at each, only €100,000 is protected in total. Always check which banks share a DGS license.
Pro Tip
Use the European Central Bank’s DGS comparison table to verify coverage across countries and banks.
Step 6: Real-Life Case Studies
Case Study 1: German Bank Collapse
In 2020, a small German bank (Wirecard Bank AG) became insolvent. Customers with balances up to €100,000 were reimbursed by EdB (the German DGS) within 7 days. Customers with more than €100,000 lost the excess and joined the queue as unsecured creditors. The process was automatic; customers received instructions by post and email.
Case Study 2: Lithuanian Fintech Account
A French resident holds €120,000 in a Revolut EUR account (covered by Lithuania’s DGS). If Revolut’s bank fails, the Lithuanian DGS will pay up to €100,000 (converted to EUR if needed). The remaining €20,000 is not covered. If the customer also has a joint account with a spouse, both are protected up to €100,000 each.
Case Study 3: Spreading Funds with Raisin
A Dutch investor uses Raisin to open €50,000 savings accounts at three different banks: one in Germany, one in Italy, and one in Austria. Each deposit is protected by the national DGS up to €100,000, so the total €150,000 is fully covered even if one or more banks fail.
Common Mistakes
- Assuming all accounts are covered: Not all fintech or e-money accounts are protected by the DGS.
- Exceeding the €100,000 limit at a single bank: Only the first €100,000 per person is protected. The rest may be lost in insolvency.
- Ignoring bank license structures: Multiple brands may share a single banking license and DGS limit.
- Not updating contact details: Can delay or block DGS compensation payments.
- Failing to save account documentation: Makes it harder to prove balances in edge cases.
Next Steps
- Review all your EUR accounts and identify your DGS coverage for each.
- For savings above €100,000, consider opening new accounts with separate DGS licenses or using platforms like Raisin to diversify.
- Regularly check your banks’ DGS status and keep your contact details up to date.
- Bookmark the EU DGS overview for reference.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider consulting a qualified financial advisor before making investment decisions.