Deposit protection
General information
ESA
Deposit insurance and investor compensation in Austria are regulated in the Federal Act on Deposit Insurance and Investor Compensation in Credit Institutions (Deposit Insurance and Investor Compensation Act - ESAEG). These provisions are the transposition of corresponding EU directives into national law.
Einlagensicherung AUSTRIA Ges.m.b.H (ESA) is the so-called "uniform" protection scheme. Every credit institution with its registered office in Austria that receives customer deposits must be a member of ESA.
Only those credit institutions that belong to one of the two Austrian institutional protection schemes - S-Haftungs GmbH (savings banks), Österreichische Raiffeisen-Sicherungseinrichtung eGen (Raiffeisen) - are exempt from this mandatory membership in ESA.
If a credit institution is not affiliated to any of these three deposit guarantee schemes, its licence to receive deposits expires. The Financial Market Authority (FMA) provides information on the valid existence of a licence and its content on its website.
The ownership structure of a credit institution is irrelevant for deposit protection; the essential factor is the existence of an Austrian licence.
If a credit institution with its registered office in one of the EU member states operates a branch in Austria and receives deposits, those deposits are covered by the protection scheme in the country where the credit institution has its registered office. In such a case, depositors must therefore generally assert any claims according to the legal provisions of the country of registration.
Frequently asked questions on deposit insurance
Which deposits are covered by the deposit guarantee scheme?
In principle, all deposits on all interest-bearing or non-interest-bearing accounts or passbooks, such as salary and pension accounts, other current accounts, fixed-term deposits, capital savings accounts or savings books payable on demand, are eligible.
Are only deposits of Austrian citizens covered?
No, the nationality of the depositor is irrelevant. Therefore, deposits of customers who are not Austrian citizens are also covered.
Are credit balances in a joint account covered?
A joint account is not held by one customer, but by several customers. The fundamental principle that deposits up to EUR 100,000 per credit institution and per person are covered, regardless of the number of accounts or passbooks, is still applicable. Therefore, provided that all account holders are authorized, the maximum payout amount of EUR 100,000 (multiple payout) applies to each account holder. The credit balance on the joint account shall be distributed equally among the account holders.
For example, if there is a deposit of EUR 200,000 in a joint account with two account holders, the two account holders can each claim an amount of EUR 100,000 in the case of deposit protection.
However, the account holders may, prior to the payout event, submit to the bank a written agreement on the division of the deposits in the joint account in the event of a payout, and thus depart from the principle of division in equal parts. This distribution key is then to be used exclusively in the payout event and has no effect on the disposition authorizations agreed with the bank outside the payout event.
The same applies to joint savings books. Additionally, any savings books in combination with any associated passwords must be presented before the secured amount can be paid out.
What are temporary high balances?
In certain cases, you can apply to the protection scheme within 12 months of the payout event to have your deposits refunded beyond the general maximum amount of EUR 100,000 up to a total of EUR 500,000.
To do so, you must prove to the protection scheme that your deposit either
- originates from real estate transactions in connection with privately used residential property, or
- fulfils social purposes provided for by law and is linked to certain life events of yours, such as marriage, divorce, retirement, termination, dismissal, disability or death, or
- is based on the payment of insurance benefits or compensation for bodily injury resulting from criminal offences or a false criminal conviction.
In all these cases, the payout event must occur within twelve months of the amount being credited or of the date on which the deposit can be transferred in a legally permissible manner.
When do I receive my money in the event of a payout event?
My covered deposits amount to a maximum of EUR 100,000
The protection scheme generally pays out the covered deposits within the statutory period of 7 working days. An application on your part is not necessary. However, the Protection Scheme must be notified of the account to which payment is to be made.
This deadline may be exceeded, for example, if
- your claim for compensation is in dispute;
- the deposit is subject of litigation;
- it is a deposit made in connection with a fiduciary transaction.
For details of these exceptions, please refer to article 14 (2) Deposit Guarantee Schemes and Investor Compensation Act.
My covered deposits amount to more than EUR 100,000
If your deposit is a temporary high balance within the meaning of article 12 Deposit Guarantee Schemes and Investor Compensation Act (see above "What are temporary high balances?"), you must
- submit an application for compensation to the Protection Scheme within 12 months of the occurrence of the payout event;
- prove to the Protection Scheme that all requirements of article 12 Deposit Guarantee Schemes and Investor Compensation Act are met.
Payment will be made after your claim has been reviewed by the Protection Scheme. In a payout event, a corresponding form will be available on the website of the Protection scheme.
CAN MY BANK EXIT THE PROTECTION SCHEME OR CHANGE IT?
A credit institution may only exit it's protection scheme if it joins another protection scheme at the same time.
If a credit institution withdraws from the Protection Scheme without joining another Protection Scheme, its license to accept new deposits expires. Existing deposits remain covered by the Protection Scheme that was previously responsible.
