Safeguarding
The way an e-money institution (EMI) protects your money. It is not a deposit guarantee.
Definition
A requirement that an EMI keep customer funds separated from its own — in dedicated bank accounts or safe assets.
How it works in practice
If the EMI runs into trouble, the separated customer funds are not part of the bankruptcy estate and should be returned to customers. But they are not paid out by a state fund — this is a different mechanism than a deposit guarantee.
Why it affects your choice
Wise (an EMI) uses safeguarding; the banks on the list have a deposit guarantee. When you compare "how safe my money is", these are two different models.
Watch out
Do not assume safeguarding equals a EUR 100,000 state guarantee. It is protection, but of a different kind.
Safeguarding (EMI) is not the same as a deposit guarantee (bank). WTP Finance is for information only; we do not give financial advice.