Is an account at a bank licensed in another EU country covered by a guarantee?

Definition

Yes — deposits at a bank holding a licence in another EU country are covered by a deposit guarantee, but not by Poland's BFG; rather by the guarantee scheme of the country where the bank is licensed (the home country).

What it means in practice

This rule follows directly from Directive 2014/49/EU (DGSD2). A bank operates under the supervision of its home-country regulator and is a member of that country's deposit guarantee scheme. This means that:

• A customer of a Polish branch, or a customer using an online bank licensed in e.g. Lithuania, the Netherlands or Belgium, is protected by the Lithuanian, Dutch or Belgian guarantee scheme — up to the harmonised limit of EUR 100,000 per depositor per bank.
• The limit is the same (EUR 100,000) thanks to harmonisation by the directive, but the payer is the bank's national guarantee scheme, not the BFG.

Examples of scheme names (based on the schemes' public information; always verify they are current): - Lithuania: Indėlių ir investicijų draudimas (IIDF) - Netherlands: Depositogarantiestelsel (DGS), supervised by De Nederlandsche Bank (DNB) - Germany: Entschädigungseinrichtung deutscher Banken (EdB) — the statutory scheme for private banks; Germany additionally has a voluntary deposit protection fund of private banks with cover above the statutory minimum (confirm the scope with the specific bank/fund) - Estonia: Tagatisfond - Belgium: Garantiefonds / Fonds de garantie - Austria: Einlagensicherung AUSTRIA (ESA) - Poland: Bankowy Fundusz Gwarancyjny (BFG)

Claim procedure for a foreign customer

The DGSD2 directive obliges national schemes to handle claims from depositors in other EU countries. In practice the bank's home-country scheme pays the guarantee, but the depositor can file a claim through the scheme of their country of residence (i.e. the BFG), which acts as an intermediary (host DGS cooperation). The customer does not have to contact the foreign scheme themselves — they can contact the BFG, which will coordinate the payout. The process is described in detail in Article 14 of Directive 2014/49/EU.

Bank vs EMI — a key distinction

The above applies only to banks (institutions holding a banking licence). Electronic money institutions (EMIs) and payment institutions are not covered by the deposit guarantee — customer funds there are protected by safeguarding (segregation of funds in separate accounts), which is a different mechanism from a state deposit guarantee. More: bank vs EMI and safeguarding.

Why it matters

Knowing which guarantee scheme covers a specific bank is needed to assess whom to address a claim to if the bank runs into trouble — and which regulator supervises the institution.

Watch out

Harmonisation means the same limit, but not identical procedures or identical payout times in every country (see Article 8 DGSD2 on the target of 7 working days, with a phased move to that deadline). Funds above the harmonised limit may be covered by additional, voluntary insurance (as in Germany), but the scope and conditions of such programmes differ — verify directly with the scheme or bank. Always confirm in which country the bank is licensed before entrusting funds to it — this information should be visible in the bank's terms and in the EBA register.

This content is for information only — it is not financial, legal or tax advice. WTP Finance does not advise on how to allocate funds.