Deposits held in credit institutions registered in Estonia are guaranteed and compensated in full, but compensation shall not be larger than 100,000 euros per one person in one bank.
The depositor protection guarantee scheme established with the Guarantee Fund Act in Estonia meets the requirements of the European Union deposit guarantee directive. The Guarantee Fund is the authority that guarantees protection of funds invested by depositors in credit institutions in the event of a credit institution’s insolvency.
If an individual has transferred residential property before the bankruptcy of the bank, the proceeds from the transaction will be refunded in addition to the aforementioned 100,000 euros in the extent of a further 70,000 euros within six months after the transfer.
Credit institutions registered in Estonia where deposits are compensated:
- Swedbank
- SEB pank
- Bigbank
- LHV pank
- AS TBB pank
- Inbank
- Coop pank
- Luminor Bank
- Holm Bank.
The deposits of a foreign bank's Estonian branch and cross-border deposits received in foreign countries are also guaranteed and compensated for the account of the Deposit Guarantee Sectoral Fund. Other branches can be found on the Financial Supervision Authority's webpage.
Deposits, together with the interest thereon as at the date on which the deposits become unavailable, shall be guaranteed and compensated for to the extent of 100 per cent but not more than in the amount of 100 000 euro per depositor in any one credit institution.
Payment of compensation shall commence not later than on the 10th business day after the date when deposits became unavailable. Compensation of deposits shall end within seven business days.
Further information about compensation for deposits can be found from the website of the guarantee fund.
References
Laws
- Funded Pensions Act
- Investment Funds Act
- Credit Institutions Act
- Securities Market Act
- Guarantee Fund Act
- Securities Register Maintenance Act
- Financial Crisis Prevention and Resolution Act