Double Deposit Insurance in Germany
29 January 2008In case of private bank’s bankruptcy all individual investors and small enterprises can apply for the means of the state fund. Current accounts savings, termless and fixed deposits, depositary certificates, and also requirements of clients concerning securities are subject to indemnifications. The maximal sum of indemnification is 18 thousand euro (20 thousand euro minus 10 percent).
More reliable protection is offered by the Fund of voluntary clients’ and of private banks’ protection. The fund automatically insures deposits of private persons, small enterprises, and large corporate clients and public organizations, who use services of the bank. The size of the insurance sum per one client can reach 30 percent of own capital of the serving bank. It means, what even the client of a small bank with own capital in 5 million euro can deposit up to 1,5 million euro without fears.
Almost all private banks are engaged in voluntary insurance of deposits. According to the press-secretary of the German Banks Federal Association (Bundesverband Deutscher Banken) in conditions of a strong competition banks do not presume to refuse granting this additional service.
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