Procedure for the compensation process
Entitlement upon determination of a compensation event
If the Federal Financial Supervisory Authority (BaFin) determines a compensation event in regard of a credit institution, depositors are entitled to compensation up to the amount of their covered deposits, subject to a maximum limit of EUR 100,000.
Party against whom the claim is made
This claim is directed against the German Savings Banks Association (Deutscher Sparkassen- und Giroverband e. V.), Charlottenstraße 47, 10117 Berlin, as the administrator of the Institutional Protection Scheme recognised as deposit guarantee scheme of the Savings Banks Finance Group.
Eligible beneficiaries
All customers who are not excluded from compensation under statutory provisions are entitled to compensation. This ususally means that all retail customers and most business customers are eligible. However certain depositors such as, in particular, credit institutions, insurance companies and public entities are not eligible for compensation.
Guaranteed deposits – up to EUR 100,000 per customer
All deposits defined as “covered deposits” under the Deposit Guarantee Act (EinSiG) are eligible for compensation. These include most deposits held by retail customers, such as transaction accounts, fixed-term deposits, savings books and savings accounts. The compensation claim is limited to EUR 100,000 per customer. Compensation is calculated and paid out per customer – not per account.
Compensation is usually paid automatically
Depositors with claims of up to EUR 100,000 do not need to take any action – they will receive their compensation by post in the form of a cheque from the Institutional Protection Scheme within the statutory time limit (currently: seven working days after the compensation event has been determined). The amount of compensation is calculated automatically by the Institutional Protection Scheme. The Institutional Protection Scheme sends a crossed cheque to the affected depositors at the postal address on file. The depositor can collect this cheque at a bank of their choice.
Increased compensation entitlement up to EUR 500,000
In special cases, the compensation entitlement may increase to up to EUR 500,000. Details are set out below. This is the case, for example, with one-off payments arising from property transactions relating to privately used properties. Furthermore, this applies to sums intended for social or statutory purposes and linked to specific life events of the depositor (e.g. marriage, divorce, retirement, termination of employment, birth, illness, need for care, disability or death), as well as for deposits that serve purposes laid down in national law and are based on the payment of insurance benefits or compensation for criminal injuries or wrongful conviction.These funds must not have been in the account for more than six months at the time of determination of a compensation event.
Claiming the increased compensation entitlement
These special cases are defined in Section 8(2) and (3) of the Deposit Guarantee Act (EinSiG) and must be substantiated by the depositor in a separate written submission to the Institutional Protection Scheme, providing evidence of the facts justifying the claim.
The application must be submitted in writing to the Institutional Protection Scheme of the Savings Banks Finance Group, Deutscher Sparkassen- und Giroverband e. V., Charlottenstraße 47, 10117 Berlin. All necessary supporting documents must be enclosed. Once the application has been assessed by the Institutional Protection Scheme, the depositor will, if the assessment is positive, receive the outstanding compensation amount by cheque.
Complaints
Complaints may be submitted in writing to the Institutional Protection Scheme of the Savings Banks Finance Group, Deutscher Sparkassen- und Giroverband e. V., Charlottenstraße 47, 10117 Berlin. The Institutional Protection Scheme will then review the complaint. If the review results in a higher compensation claim, the difference will be sent by cheque to the depositor’s registered postal address.