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Pillars of deposit insurance

If you want to invest your savings domestically, you can trust that legal and voluntary security systems can compensate for bank failures. In Germany there are three pillars of deposit insurance.

  • The so-called statutory deposit insurance currently protects investments up to an amount of 100,000 euros per customer and bank.
  • Voluntary deposit insurance can at best protect investments up to 100 percent.
  • Should the aforementioned security systems fail, the state guarantee guarantees private investors to fully reimburse all savings

Legal Deposit Guarantee

The statutory deposit insurance currently covers defaults of up to € 100,000 per creditor and bank. The protection of statutory deposit insurance includes all types of deposits such as sight, term and savings deposits as well as registered savings bonds. The legal basis of the statutory deposit insurance is the “Deposit Guarantee and Investor Compensation Act” (EAEG), which aims primarily to protect the funds of private investors and smaller companies. The implementation is entrusted to the “Compensation Institution of German Banks GmbH” (EdB).

All banks domiciled in Germany are required by law to join the statutory deposit insurance. The exceptions are the savings banks, Landesbanken, Landesbausparkassen and cooperative banks, including the Volksbanken and Raiffeisenbanken. Due to the association’s own support and security systems, they are exempted from the duty to belong to the legal deposit insurance.

Voluntary deposit insurance

In addition to statutory deposit insurance, there are voluntary security systems. The so-called deposit insurance funds of the banks should protect the customer investments in the event of bankruptcy beyond the statutory compensation claim.

Savings banks and Volksbanks

All savings banks in Germany are secured by a liability insurance. The solidarity community of the savings banks provides money to emergency savings banks, if necessary. For the savings bank customer, this means that all deposits are protected 100 percent without any cap. The Volks-, Raiffeisen- und Genossenschaftsbanken act in a similar way. As a result of the security scheme of the “Association of German Cooperative Banks (BVR)”, the customer deposits of the affiliated banks are also secured at 100% without any limitation.

Public banks

The deposit insurance fund of the “Federal Association of Public Banks of Germany” (VÖB), the customer deposits of the affiliated public banks are unlimited to 100 percent secured.

private banks

Private banks can protect the funds of their customers in the deposit protection fund of the “Association of German Banks” (BdB) in addition to the statutory deposit insurance. The security limit is 20 percent of the liable equity of the bank. As a bank operating in Germany must have equity of at least EUR 5 million, investments per investor are protected at least up to a maximum of EUR 1 million. The only downer: For benefits from the voluntary deposit insurance funds of private banks investors have no direct legal entitlement. The Association justified this as follows: Granting a legal entitlement means that the Fund would take on the status of insurance, with the consequence that an insurance tax would subsequently have to be paid. This complicates and makes the process more expensive.

State guarantee & deposit insurance of foreign banks

government guarantee

The state guarantee is a federally provided with 568 billion euros filled pot that guarantees every saver the unlimited refund of its savings, term money or current account deposits made. Prerequisites for the provision of the funds are the membership of the bank concerned in one of the deposit guarantee funds mentioned above as well as the banking seat in Germany.

Banks based abroad

Banks that have branches in Germany but have their headquarters abroad are not subject to German deposit insurance. Rather, the deposit guarantee limits of the respective country apply here. In member states of the European Union, compensation for deposits according to an EU directive is currently guaranteed up to an amount of 100,000 euros. In addition, foreign banks have the opportunity to voluntarily join the deposit insurance fund of the “Association of German Banks” and thus additionally secure the deposits of German customers.

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The White House recognizes that the internal debate on the debt affected the S & P downgrade

The White House recognizes that the internal debate on the debt affected the S & P downgrade


The White House has acknowledged on Saturday that the debate over the rise in the debt limit, “too long and too hostile “, has turned out to be one of the main factors for the Standard & Poor’s agency to decide to lower the sovereign debt rating of United States , for the first time in its history.

In an appearance before the media, White House spokesman, Jay Carney, called for increased efforts to clarify “the will, capacity and commitments” to “work to combat the fiscal and economic challenges more important”.

In the first statement from the White House after the announcement of the degradation of the ‘rating’, Carney insisted that what is important now “is for the elected leaders to unite to strengthen the economy and fiscal balance”.


While the doubt remains as to whether this loss of the highest debt rating, AAA, downgraded to AA +, will trigger a rise in interest rates, the White House appealed for unity and affirmed that President Barack Obama will “strongly encourage” both to the bipartisan fiscal committee as well as to the leaders of Congress to put aside their “political and ideological differences” and work for a greater economic recovery and a “more sensible” fiscal path in the long term, said Carney.

Promote job creation

The president of the United States, Barack Obama, urged Congress on Saturday to approve a series of measures that he considered will help boost economic growth and employment , in what will be a key factor for his re-election in 2012.

During his usual Saturday radio and Internet address, Obama said that, after the agreement approved this week to reduce the deficit and raise the debt ceiling, the priority now is to focus efforts on the growth of the economy and creation of jobs “with greater speed”.

Our job now is to create the conditions for citizens’ incomes to rise again “Our job right now has to be that we do everything possible to help people find work , create the conditions for companies to hire and that the incomes (of the citizens) go back up “, summed up the president.

Obama reiterated his request that, by resuming legislative sessions in September, Congress approve measures such as the extension of tax cuts for working families and the middle class, and the simplification of bureaucratic procedures to encourage the creation of jobs in the sector. private.

He also repeated his desire for Congress to approve free trade agreements with South Korea, Colombia and Panama, and the extension of the Trade Adjustment Act (TAA), which offers aid and training for American workers displaced by foreign trade competition.

Obama said both Democrats and Republicans must work closely to come up with a long-term plan to restore America’s fiscal health.

Economic recovery, a priority

The president recorded his message Saturday before the risk assessment company Standard & Poor’s downgraded the US debt rating of AAA, the maximum possible, to AA + , which fears an increase in interest rates and a higher economic instability in the country.

The economic recovery has become the highest priority of Obama ahead of the general elections of 2012.

According to the latest economic data, the unemployment rate registered a slight decrease from 9.2 to 9.1% last July due to the boost of hiring in the private sector . But in the quarter from April to June, the Gross Domestic Product (GDP) only grew by 1.3%, less than expected.

In that sense, the republican legislator of New York, Michael Grimm, said in the weekly speech of the opposition that the high rate of unemployment shows that the economic policies of Obama do not work .

He added that the cuts included in the agreement to reduce the deficit are not enough and repeated the Republican position that Congress should approve a constitutional amendment that requires a balanced budget.