Frequently asked questions

The FGD guarantee will become effective if one of the FGD member institutions has declared bankrupt and cannot return the money to its clients.

The FGD guarantees up to €100,000 per holder and per financial institution. However, in certain cases, the total amount deposited can be guaranteed.

This would affect deposits made in the three months prior to the date on which it is determined that the institution concerned is unable to refund the deposits that:

• come from transactions involving residential or private real estate.
• those arising from payments received on a timely manner and linked to marriage, divorce, retirement, dismissal, invalidity or death.
• or based on the payment of insurance proceeds or damages resulting from a criminal offence or a miscarriage of justice.

In the case of money deposited in a currency other than the euro, the amount guaranteed shall be its equivalent at the exchange rate prevailing on the date on which it is established that the institution is unable to refund the money or on the previous business day if it is a public holiday.

What is NOT guaranteed by the DGF?

The FGD does not guarantee certain types of deposits, mainly those for which the institution concerned did not ensure full refund of the nominal fee, or certain companies, such as insurance or investment companies.

The FGD covers all deposits where the repayment of 100% of the principal (balance) is guaranteed, e.g. current accounts, savings accounts or passbooks, savings deposits, demand deposits, fixed-term deposits, time deposits, etc.

In the case of structured deposits, they are covered, as mentioned above, as long as the return of 100% of the deposited capital is guaranteed at maturity.

It is important to note that the FGD guarantee only covers deposits up to the limit set by the regulations.

Prior to the conclusion of a deposit agreement, credit institutions must inform their customers of the characteristics and coverage limits of the Deposit Guarantee Fund to which they belong.

In addition, each year the institutions will inform their customers through their account statements whether deposits are covered by the FGD.

Remember that credit institutions in Spain are obliged to make this information available in their branches and on their websites, so that it can be consulted at any time. This information should specify the amount and scope of the coverage offered.

If you deal with your credit institution online, the guarantee fund information will be sent to you electronically.

However, if you prefer to receive it on paper, you will need to request it from your credit institution.

The FGD guarantees the non-refoulement of shares, investment fund shares/units or other financial securities deposited in an affiliated credit institution, either in Spain or in another country, up to an amount of €100,000 per holder and institution, with certain exceptions, such as securities entrusted for investment services in countries that are tax havens.

The FGD does not cover losses in the value of the aforementioned securities, only the non-refoulement of these securities.

This coverage is separate from that of monetary deposits.

The amount of the guarantee is determined by the market value on the day on which the credit institution declares that it is unable to return the securities deposited with it, or on the preceding business day if it is a public holiday.

In most cases, financial securities deposited with a credit institution in crisis can be transferred to another credit institution.

Let’s see an example:

Manuel holds 700 shares from BANK X and 600 shares from COMPANY Z, all of which have been deposited into BANK Y, with respective values of 50,000 and 60,000 euros, on the date when it was determined that BANK Y couldn’t fulfill its obligation to return the deposited securities.

As the value of the shares deposited in the ailing bank is higher than this amount, the amount covered by the FGD is €100,000.

What if the problems are in Bank X?

Since the FGD covers the non-return of the shares deposited in BANK “Y”, the FGD coverage is €0. In this case, there has been no problem in BANK “Y.”

Due to the fact that Bank X is in trouble, the shares of Bank X would be worth €0.

The FGD does not guarantee the loss of market value of financial securities.

The FGD doesn’t cover the amount you have over €100,000, so you will have to claim it in the bankruptcy proceedings of your institution.

However, in certain instances, the FGD may provide a full refund.

If the deposits were settled in the three months prior to the date on which it was decided that your institution couldn’t refund the deposits, and if:

• Come from transactions involving residential real estate of a private nature.
• arise from occasional payments received in connection with marriage, divorce, retirement, dismissal, disability or death.
• or are based on insurance payments or compensation resulting from a criminal offence or a miscarriage of justice.

Money deposited in Spanish branches of credit institutions established in other EU countries is insured by the Deposit Guarantee Fund of the other country, which, according to EU rules, must provide at least the same coverage as that provided by the FGD.

However, for your peace of mind, in the case of the branch cannot refund your money, the FGD will process the payments on behalf of the deposit guarantee fund of the country to which the institution belongs.

For example, if you hold an account at a Spanish branch of a Dutch bank, you will be covered by the Dutch deposit fund, but the procedures for obtaining your money back will be carried out through the FGD.

Pension schemes are NOT covered by the FGD.

For more information about these products, please contact the General Directorate of Insurance and Pension Funds.

The procedure for obtaining the guaranteed amount is very simple.

You will not need to make any claims or incur any costs.

The FGD receives from the affected credit institution the data of its customers, including the amount of deposits held by the depositor in the credit institution.

In the case of deposits in a branch in Spain of a credit institution from another EU country, the FGD will process the payments according to the instructions of the guarantee fund of the country of origin of the institution.

Once the data has been received, the FGD will contact you by letter to inform you of the amount of money to be paid by the FGD.

You must tell the FGD by letter or online that you agree with the information they’ve given you and give the FGD the IBAN of an account you have (other than the one at the affected institution) to which you want the refund to be made.

Once this data has been received and verified, The FGD will proceed to pay the guaranteed amount.

In the case of monetary deposits, the FGD has 7 working days to pay out the guaranteed amounts.

In the case of securities deposits, the time limit for the FGD to pay the guaranteed amounts is a maximum of 3 months from the moment the amount to be refund to the holder has been determined.

Notifications of personal data changes shall be made to your credit institution.

It is important that you keep all your personal details updated with your bank so that the FGD can contact you in the event that guaranteed amounts are due to be paid to you.

(Full Name, Address, telephone and email address)

Let’s see some EXAMPLES:

Sonia is the only holder of a current account with a balance of €38,000. Therefore, the FGD covers Sonia for €38,000.

Sonia is the only holder of a current account with a balance of €38,000. Therefore, the FGD covers Sonia for €38,000.

Guillermo and Paloma have a joint current account with €150,000 (they are 50% holders, €75,000 each). Therefore, The FGD covers €75,000 for Guillermo and €75,000 for Paloma.

Antonio and Javier have a joint current account with €300,000 (they are 50% holders, i.e. €150,000 each). Therefore, the FGD covers €100,000 for Antonio and €100,000 for Javier.

Maria is the only holder of a current account with €105,000 and Laura is also listed as an authorised person on the account. The FGD covers Maria for €100,000, as authorised persons are not covered by the FGD.

Carmen is the only holder of a current account with €25,000 and has a joint account with Sergio with €140,000 (they are 50% holders, i.e. €70,000 each). Therefore, the FGD covers €95,000 for Carmen and €70,000 for Sergio.

Esther is the only holder of a current account with €60,000 and has a joint account with Mario with €140,000 (they are 50% holders, i.e. €70,000 each). Therefore, the FGD covers €100,000 for Esther and €70,000 for Mario.

Deposits in an account held by a community of goods, a community of owners or an account in which two or more persons have rights as partners or members of a company, association or similar grouping without legal personality are considered as deposits belonging to a single depositor for the purpose of calculating the coverage limit of €100,000.

Let’s see an EXAMPLE.
A person holds a current account with the concerned credit institution and has a balance of €70,000. In addition, he is part of a community of owners. This community owns an account with a balance of €180,000.

The amount guaranteed by the FGD to the individual person would be €70,000. And €100,000 to the Community of Owners, as the maximum amount per owner and entity guaranteed by the FGD is €100,000.

If an entity operates under different trademarks, it must inform its customers of this fact.

The FGD coverage applies to the sum of all deposits with the credit institution, taking into account all the brands it uses.

If you have any doubts, talk to your branch or consult your bank’s website.

If the merger has been finished and there is only one credit institution, the FGD compensation is limited to €100,000 for all the money in the credit institution that was created by the merger.

Credit institutions must inform their customers at least one month before the transaction takes legal effect.

The customers will have three months after notification of the merger to withdraw or transfer their guaranteed deposits to another credit institution, free of charge.

Yes, The FGD meets all legal solvency requirements.

The FGD obtains its resources from the annual contributions of all member credit institutions.

This makes it possible to deal with possible bank crises and to ensure the refund of guaranteed deposits, offering greater security and peace of mind to holders of deposits in credit institutions.

Also, if needed, the FGD may agree to ask member credit institutions to make big contributions and may also borrow money, raise money on the securities markets, or do other debt operations.

All with the aim of guaranteeing holders their money.