Main terms and conditions of depositor protection

Depositors hold deposits in credit institutions operating in Estonia on the basis of activity licenses.

The Guarantee Fund shall notify depositors within 2 business days upon the occurrence of a deposit compensation event.

Deposits including accumulated interest are compensated in full, but compensation shall not be larger than 100,000 euros. See more.

Compensation of deposits shall end within 7 business days of the date when deposits became unavailable.

Compensation for deposits shall be paid out via one or several Estonian or foreign credit institutions determined with the decision of the supervisory board of the Guarantee Fund.

Whose deposits are not compensated and what kind? Check here.

Front page : Protection of Depositors

How are your deposits protected

One of the main purposes of the Guarantee Fund is to guarantee protection of the funds invested by depositors in credit institutions in the event of a credit institution’s insolvency. In order to meet this purpose, the Fund collects single and quarterly contributions from credit institutions into the Deposit Guarantee Sectoral Fund (DGSF) and compensates the deposits invested by depositors in credit institutions to the depositors.

Deposits of depositors of credit institutions registered in Estonia are guaranteed and compensated for the account of the Deposit Guarantee Sectoral Fund (DGSF). A credit institution registered in Estonia means a credit institution that has obtained an activity license from the Financial Supervision Authority.

The deposits of the depositors of a foreign branch of the same credit institution and cross-border deposits received in foreign countries are also guaranteed and compensated for the account of the Deposit Guarantee Sectoral Fund.

Deposits including accumulated interest are compensated in full, but compensation shall not be larger than 100,000 euros. See more.

The following deposits are not subject to compensation: deposits of the state and financial intermediaries, deposits whose holders have unperformed obligations to the credit institution to the extent of these obligations, and deposits associated with money laundering. See more.

The depositor protection guarantee scheme established with the Guarantee Fund Act in Estonia meets the requirements of the European Union deposit guarantee directive.

Deposit guarantee schemes spare depositors the need to participate in lengthy insolvency proceedings, where the payouts made usually cover only a small part of the initial deposit.

Deposits of depositors of Estonian branches of foreign credit institutions are also compensated in certain cases if they are guaranteed according to the guarantee scheme of the credit institution’s country of location to an extent that is smaller than prescribed in the Guarantee Fund Act.

Credit institutions where deposits are compensated

AS Inbank
AS LHV Pank
AS SEB Pank
Bigbank AS
Coop Pank aktsiaselt
Holm Bank AS
Luminor Bank AS
Swedbank AS
AS TBB pank

Deposit

For the purposes of the Guarantee Fund Act a deposit refers to:

claims arising from the settlement contract of a depositor against the credit institution managing the account of the depositor and
claims arising from the settlement or loan contract of a depositor against the borrowing credit institution;
a sum for the transfer of which depositors or other persons have issued a corresponding payment order for their own account but the credit institution has not executed the payment order by the date on which deposits become unavailable;
non-transferable registered acknowledgements of obligation pertaining to deposits (deposit certificates);
a joint deposit which belongs to two or more persons jointly;
money belonging to third persons deposited in accounts open for the official operations of notaries and bailiffs are treated as deposits separately for each person in the compensation case of deposits.

Common deposits types

Cash in current account
Demand deposit
Term deposit
Overnight deposit
Operating deposit
Growth deposit
Savings deposit
Child deposit
Investment deposit

Level of compensation for deposits

Deposits, together with the interest thereon as at the date on which the deposits become unavailable, shall be guaranteed and compensated for to the extent of 100 per cent but not more than in the amount of 100 000 euro per depositor in any one credit institution.

In addition to 100,000 euros, up to 100,000 euros (including interest accrued up to the date of suspension) of the depositor’s funds will be reimbursed if the depositor’s account has been credited with funds received for personal use during the six months preceding the date of suspension in relation to the following:

1. the transfer of residential property provided for in § 5(4) of the Creditors and Credit Intermediaries Act;

2. marriage or divorce, early termination of an employment or occupational contract at the initiative of the employer or redundancy, retirement, including funded retirement, or disability or death of a close relative;

3. the insurance compensation, as compensation awarded under the Victim Support Act or the State Liability Act to compensate for loss caused by the adjudication of a claim, or as compensation awarded to a victim in criminal or misdemeanour proceedings.

Interest on a deposit shall be calculated on the basis of the rates provided for in the settlement or loan contract or, in the absence of a written agreement, on the basis of the rates provided for in the standard depositing terms valid in the credit institution on the date on which the deposits become unavailable.

Other sources for compensation

If the assets of a sectoral fund are not sufficient to preform the obligations of the sectoral fund, the Fund may, on the basis of a resolution of the supervisory board:

take loans from credit institutions or other persons;
perform the obligations of the sectoral fund out of another sectoral fund.
apply for a state loan or a state guarantee for a loan taken by the Fund.

Right of claim

Upon payment of compensation to depositors, investors, unit-holders and other entitled persons, the right of claim against a fund participant shall transfer from such persons to the Fund to the extent of the amount paid.

The claims of entitled persons against a fund participant which have not been compensated for by the Fund shall be satisfied pursuant to the Bankruptcy Act and other Acts.