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Deposits Guarantee Fund


What is the Deposit Guarantee Fund

The Deposit Guarantee Fund is a legal person under public law with administrative and financial autonomy with its own assets.

It is headquartered in Lisbon and works together with Banco de Portugal.

The purpose of the Fund is to ensure the repayment of deposits made with credit institutions that participate in the Fund if those deposits become unavailable.

The Fund is ruled by the provisions of articles 154 to 173 of the Legal Framework for Credit Institutions and Financial Companies and remaining applicable legislation.



Who takes part in the Deposit Guarantee Fund?

The following are required to participate in the Deposit Guarantee Fund:

  • Credit institutions with registered offices in Portugal authorized to receive deposits;
  • Credit institutions with registered offices in countries that are not members of the European Union, regarding deposits made in their branches in Portugal, except if those deposits are covered by a protection system from the country of origin in a way that Banco de Portugal considers equivalent to that of the Fund, namely regarding the protection scope and the guarantee limit, without damaging any bilateral agreements that may exist on the issue.


What type of deposits are covered by the protection scope of the Deposit Guarantee Fund?

The Deposit Guarantee Fund ensures, up to certain limits, the repayment of:

  • Deposits, made in Portugal or in EU member states, in credit institutions with registered offices in Portugal;
  • • Deposits made in Portugal with branches of the credit institutions mentioned above.


What is the maximum amount guaranteed?

If a deposit is unavailable because the credit institution is unable to comply with its financial commitments, the Deposit Guarantee Fund guarantees the repayment, per credit institution, of the global amount of the balances in cash of each depositor, up to a limit of € 100 000.

For that purpose, the credit balances existing on the date the deposits become unavailable, shall be considered.



What is the maximum limit guaranteed in case of joint accounts?

In case of joint accounts, the €100.000 limit applies to each depositor.

Unless otherwise stated, it shall be assumed that they belong, in equal portions, to the holders of collective or joint accounts.

However, the deposits made in an account used by two or more people who are acting as members of an entrepreneurial partnership, association or a group with a similar nature without legal personality, are considered as only one depositor for the purpose of calculating the €100.000 limit.



In which cases is the Deposit Guarantee Fund not applicable?

In some deposits, the limit of 100.000€ does not apply for a period of one (1) year, starting on the date when the amount was credited to the customer's account.

These include:

  • Deposits resulting from real estate transactions related with private residential buildings;
  • Deposits with social purposes, regulated by a separate diploma;
  • • Deposits in which the amount derives from the payment of insurance instalments or indemnities due to the practice of a crime or from a wrongful conviction.


Which deposits are excluded from the protection scope of the Deposit Guarantee Fund?

These are:

  • Deposits for and on behalf of credit institutions, investment firms, financial institutions, insurance and reinsurance undertakings, collective investment institutions, pension funds, national and foreign public sector entities and supranational or international bodies, with the exception of:
    • Deposits of pension funds whose associates are small or medium-sized enterprises;
    • Deposits of local authorities with an annual budget equal to EUR 500 000 or less;
  • Deposits arising from operations in respect of which a final criminal conviction has been issued for the practice of money laundering;
  • Deposits whose holder has not been identified in accordance with article 8 of Law 25/2008, of 5 June (in its current wording), by means of the presentation of the data foreseen in article 7 of the law mentioned above, on the date the deposits become unavailable;
  • Deposits of individuals and entities which, in the two years prior to the date on which the deposits were unavailable or in which a resolution was adopted, had a direct or indirect interest equal to or higher than 2% of the share capital of the credit institution or have been members of the credit institution's management bodies, unless it is established that they were not, by action or omission, at the origin of the credit institution's financial difficulties and did not contribute, by action or omission, to the deterioration of the credit institution's situation.


How is the repayment made when the deposits are in a currency other than Euro?

The balances of deposits made in a foreign currency shall be converted into Euros, at the foreign exchange rate of the date when the unavailability of the funds is recognised.



What are the repayment time limits?

The Deposit Guarantee Fund shall repay the deposits within the following maximum time limits:

  • 20 business days until 31st of December 2018;
  • 15 business days from 1st of January 2019 to 31st of December 2020;
  • 10 business days from 1st of January 2021 to 31st of December 2023 and,
  • 7 from 31st of December 2023.

During this transition period the Deposit Guarantee Fund shall make available to the depositors a portion up to 10.000€ of all the deposits guaranteed by the Fund, within a maximum time limit of 7 business days.



What is the depositor information template (DIT)?

Credit institutions collecting deposits in Portugal must provide to the general public, in an understandable manner, with all relevant information regarding the guarantee schemes that benefit the deposits they receive, namely the respective identification and requirements, together with the amount, protection scope and maximum time limit for repayment.

This information will be provided by means of a separate document named depositor information template.



When is the depositor information template made available to the Depositor?

The depositor information template is provided at the moment the account is opened and should be signed by all account holders.

Reference must be made to the depositor information template at least once a year.



How does a client know if his/her deposit(s) are included within the protection scope of the Deposits Guarantee Fund?

Credit institutions must provide their depositors with the confirmation that the deposits contracted are deposits guaranteed by the Deposits Guarantee Fund by including in the account statements a reference on the deposit information template.



How does a client know if his/her deposit(s) are excluded from the protection scope of the Deposit Guarantee Fund?

Credit institutions must always inform the depositors whenever their deposits do not benefit from the deposits guarantee fund.



Where can the depositor get additional information on the Deposits Guarantee Fund?

Further information on the Deposits Guarantee Fund may be obtained on www.millenniumbcp.ptor at any branch (or at www.bportugal.pt).

The Deposit Guarantee Fund provides all information deemed necessary for depositors on www.fgd.pt, namely information regarding amount, protection scope and procedures for the repayment of deposits.

Find out more at www.fgd.pt and at the e no Portal do Cliente Bancário in www.bportugal.pt .