Deposit guarantee

The Fonds de garantie des dépôts Luxembourg (FGDL, Luxembourg Deposit Guarantee Fund) covers eligible deposits with member banks and POST Luxembourg. Eligible deposits made through branches of Luxembourg banks located in a Member State of the European Union are also covered by the FGDL. However, deposits with branches in a third (non-EU) country are not covered by the FGDL. Eligibility for the deposit guarantee does not depend on the currency of the deposit or on the origin or the place of residence of the depositor. In principle, all natural and legal persons, excluding entities in the financial sector, are eligible. The exclusions are listed in Article 172 of the Law of 18 December 2015, as amended.

The FGDL guarantee is triggered when an FGDL member institution is unable to repay eligible deposits to its customers. Typically, this situation arises in the event of bankruptcy of a bank. The guarantee offered by the FGDL is limited to EUR 100,000 per person and per bank. In some cases, the guarantee may be higher. Depositors retain their rights to the portion that is not repaid by the FGDL and deposits that are not eligible for deposit guarantee. They must assert these rights with the liquidator of the failed bank.

EUR 100,000 are protected, regardless of the currency of the deposits. The repayment for depositors of Luxembourg banks and their European branches is always made in euros. For joint accounts, each co-holder is entitled to a EUR 100,000 deposit guarantee.

Generally, the FGDL is required to make repayments via bank transfer within seven working days following the activation of the deposit guarantee, provided that the depositor has informed the FGDL of its new bank account number and that the right to compensation has been established and validated. In some specific cases, deadlines may be longer. In the event of a loss, the FGDL will inform depositors by mail and via its website of the exact procedure to follow in order to provide the FGDL with the necessary information, such as e.g. the new account number. More details on how the deposit guarantee works can be found on the “Compensation process” page.