Fondo de Garantía de Depósitos de Entidades de Crédito

Monetary deposits

Secured monetary deposits

Eligible deposits will comprise credit balances of accounts, including funds held temporarily in trade operations and excluding any of the deposits stipulated in article 4.4 of Royal Decree 2606/1996 of 20 December, which members are required to refund as per applicable contractual and legal terms and conditions, in any currency in which they are denominated, and provided they are established in Spain or another European Union Member State, including fixed-term deposits and savings deposits. Any part of these deposits not exceeding the legally established cover will be treated as secured deposits.

Any of the funds held temporarily mentioned in the previous paragraph will, in any event, include monetary resources deposited with the member to perform any type of investment service, pursuant to the recast text of the Spanish Securities Market Act or deriving from said services or activities.

In any of the following circumstances, credit balances will not be considered deposits for the purpose of the aforesaid royal decree:

  • Their existence can only be proven by way of one of the financial instruments stipulated in article 2 of the recast text of the Spanish Securities Market Act, approved by Royal Decree-Law 4/2015 of 23 October. Repurchase agreements and bearer certificates of deposit will therefore not be considered deposits.
  • If the principal is not repayable at its nominal value.
  • If the principal is only repayable at its nominal value with a special agreement or guarantee from the credit institution or a third party.

Payments of the secured sums of deposits will not include those made after the date on which the events indicated in Article 8 of Royal Decree 2606/1996 of 20 December have occurred. The same is true for deposits or withdrawals taking place after said date, without prejudice to article 7.1 of Royal Decree 2606/1996 of 20 December.

Secured deposit limit

Deposits will be secured up to a limit of EUR 100,000 or, in the case of deposits in other currencies, an equivalent sum at the applicable exchange rate, under the terms set forth in regulations.

The following deposits will also be secured, irrespective of their amount, for three months from the moment the funds have been credited or these deposits have become legally transferable:

  • Deposits from real estate transactions involving private residential properties;
  • Deposits deriving from payments received by the depositor on a one-off basis in connection with marriage, divorce, retirement, dismissal, disability or death; and
  • Deposits concerning insurance payments or indemnity payments for damages as a result of a criminal act or judicial error.

Balances payable to the credit institutions by depositors will not be included when calculating repayable amounts unless the due date of these debts falls before or on the reference dates specified in the previous section and the legal and contractual terms and conditions of the contract between the credit institution and depositor stipulate this.

Whatever the case may be, credit institutions will duly notify depositors before contracts are signed of when their debts with the institution will or will not be included when calculating secured sums as per the previous paragraph.

In the case of non-Euro denominated deposits, the secured amount will be the equivalent at the exchange rate on the day one of the events triggering payment of the guarantee by the Fund takes place or the next working day if the aforesaid is a public holiday.

The Fund's guarantees will be applied per depositor, whether they be a private individual or legal entity and irrespective of the number and class of monetary deposits they hold with the same institution. This limit will also be imposed for depositors holding deposits exceeding the maximum guaranteed amount.

When an account has more than one holder, the balance thereof will be divided by the number of holders in accordance with the deposit agreement or, otherwise, into equal parts.

When the deposit holders act as representatives or agents on behalf of third parties, provided the legal beneficiary has been identified or can be identified before the events triggering payment of the guarantee by the Fund, the cover will be proportionally applied to the third-party beneficiaries of the deposit.

Notwithstanding this, when the representative or agent is one of the entities not entitled to the Fund's cover, it will be considered that the deposit belongs to said entity and it will not be secured by the Fund.

Any deposits existing when a member of the Fund has its authorisation revoked will continue to be secured until the institution is wound up or liquidated, and the institution will still be required to make the legally enforceable contributions. In the case of current accounts, the balance secured will be that existing on the revocation date less any balances payable between that date and the date on which the event triggering payment of compensation is declared.