Danish Deposit Guarantee Fund
The deposit guarantee provided by Danish banks represents EUR 100,000 (approximately DKK 750,000). The Deposit Guarantee Fund covers cash deposits up to this amount.
Basically, this works as follows:
- If a financial institution files for bankruptcy, the fund will cover losses incurred by private individuals and companies with regard to their deposits.
- The fund guarantees deposits of up to EUR 100,000 per person.
- Any loans taken out at the same financial institution are set off against deposits.
- Certain special deposits are fully covered, including index-linked accounts, different types of pension accounts and children’s savings accounts.
If you have any concerns regarding the new maximum amount, you might consider investing in Danish bonds, either directly or through an investment fund. Such investments are not affected by this because they are in your personal portfolio.
The guarantee is subject to a number of conditions. For more information on the Deposit Guarantee Fund please visit www.gii.dk (in Danish).
