Deposit guarantee of EUR 100,000 — per bank or per person?
Definition
The EU deposit guarantee protects funds held at a bank up to the equivalent of EUR 100,000 per depositor at one bank (an institution holding a single banking licence) — not per account.
What it means in practice
Directive 2014/49/EU of the European Parliament and of the Council (DGSD2) harmonises this limit across the EU. It means the unit of calculation is the combination of person + banking licence, not the number of accounts. If one person holds a current account, a savings account and a term deposit at the same bank, all balances are added together and the whole amount is protected up to EUR 100,000 in total — not separately up to EUR 100,000 per account.
An important detail about brands and licences: several different brands or trade names can operate under a single banking licence. In that case a customer's funds held across all those brands add up to one limit, because formally it is one bank (one regulated entity). Whether a given brand is a separate bank with its own licence, or only a branch/brand of another bank, can be checked in the registers of the relevant regulator or guarantee scheme (e.g. UKNF in Poland, EBA in the EU).
Joint accounts
An account held jointly by two people is, as a rule, treated as if each of them held an equal share of the balance. Each co-holder is then entitled to a separate EUR 100,000 limit — so total protection on a joint account can be up to EUR 200,000. The exact rules can differ between countries within the directive's implementation; always confirm with the national guarantee scheme.
Temporary high balances
The DGSD2 directive (Art. 6(2)) provides a mechanism for temporary protection of funds above EUR 100,000 when they come from specific life events — including the sale of a residential property, inheritance, severance pay, compensation. The directive does not set a single amount: protection lasts from 3 to 12 months, with the amount and details set by national law. In Poland the BFG raises the guarantee to the equivalent of EUR 200,000 for 3 months from the inflow of funds from such sources — on the depositor's request, with documents confirming the source of the funds.
Why it matters
Understanding the unit of the limit (per person per licence, not per account) is the foundation for interpreting what the guarantee actually covers in a specific situation. Wrongly assuming protection works per account can lead to a mistaken picture of the scope of cover.
Watch out
The deposit guarantee covers deposits (funds held) — it does not cover funds in transit (mid-transfer), financial instruments or amounts above the limit. The amount above EUR 100,000 is not automatically protected, although in a resolution/insolvency procedure depositors have priority (for this, follow up with the relevant regulator or national scheme). Always confirm the current scope of cover with the national deposit guarantee scheme (in Poland: BFG — bfg.pl) or with an adviser.
This content is for information only — it is not financial, legal or tax advice. WTP Finance does not advise on how to allocate funds.