Law Advices and Legal Tips

The deposit insurance system is to ensure our customers that have deposited their savings in boxes, banks and credit institutions in case of failure of these recovered some of their money to the limits established by the Executive (100.000 euros). But they also have another function: to strengthen the solvency and operation of a failing institution.

1. Are you protected the money deposited by savers?

The fund accounts for the failure of banks, savings banks and credit unions is the Deposit Guarantee Fund (FGD).

2. How are the funds?

Spanish credit institutions entered in the register of entities of the Bank of Spain are obliged by law to contribute to the FGD two per thousand of their deposits. These contributions may vary in certain cases.

3. What should I do if my financial institution bankruptcy?

The FGD will first contact the entity that is in trouble to ask for account information, balances and customer data. Then, the FGD sent a personal letter to each customer of the entity, to inform you about the status of the bank and to confirm that the customer’s bank details are correct. After three months, FGD is expected to enter the money in the account number that the customer has provided.

4. What Deposits-financial-products not covered by the FGD?

* Financial products made by other credit institutions on their own and in your own name as well as those made by insurance companies, securities dealers, real estate investment trusts, venture capital, etc …
* The debt securities issued by the credit institution, including promissory notes and negotiable.
* Certificates of Deposit to the carrier, the repurchase agreements and financing with subordination clause.
* Deposits made by companies belonging to the same economic group that the credit institution.
* Deposits made by the government.
* Deposits made by those who hold administrative or management positions in the state.