Changes to the Dutch Deposit Guarantee

After years of low interest rates on savings accounts in the Netherlands, an increase is finally noticeable. The interest you receive on a savings account is closely related to the party where you put your money. Smaller banks often offer higher interest rates than large banks, but they also carry more risk. With larger, financially stronger banks, the chance of repayment is greater, so the interest rate is usually lower. Despite this risk assessment, the interest rates offered by major Dutch banks lag behind those offered by banks abroad. 

Equivalent protection 

In the European Union, the Deposit Guarantee Scheme was established to protect savers. This ensures that your money per bank is guaranteed up to €100,000 , regardless of which EU country the bank is located in. In non-euro countries within the European Union, Iceland, Liechtenstein and Norway, the €100,000 may have been converted into the local currency of that country. In these cases, slight differences may occur due to exchange rate fluctuations. 

Bank protection 

Foreign banks can operate in the Netherlands in several ways. The way they operate determines which deposit guarantee protects your money with this foreign bank. 

• Subsidiary: Some foreign banks operate through a subsidiary and hold a Dutch banking license. In this case, your money is protected by the Dutch Deposit Guarantee. 

• Direct activities: A foreign bank can also operate in the Netherlands without setting up a subsidiary. These are usually banks from other countries within the European Union, Iceland, Liechtenstein and Norway. Your money will then be protected by the country where the bank is from. 

• International Savings Platform: Some foreign banks operate through an international savings platform. In that case, the deposit guarantee depends on the construction used by the platform. It is important to know which guarantee scheme the product falls under before you open an account through such a platform. 

How do you get your money back? 

When your money is protected by a deposit guarantee scheme from another country, it may take longer to get your money back after a bank fails. The Dutch Deposit Guarantee guarantees customers in the Netherlands a payout period of 7 working days, during which you can easily get your money back via DigiD. 

For customers of a Dutch branch of a foreign bank, it may take more time to get their money back. The reimbursement is made through the Dutch Central Bank (DNB), but on behalf of the foreign deposit guarantee scheme. The foreign guarantee scheme determines who receives what compensation. 

If you have opened a savings account with a partner bank via a savings platform, the reimbursement will be made through the deposit guarantee scheme of the country where the partner bank is established. It is therefore important to check this carefully before opening an account through the platform. 

Important changes as of 1 September 2024 

From 1 September 2024, a number of important changes will be made to the deposit guarantee in the Netherlands, which will offer extra protection to people with temporarily higher balances in their bank accounts. Here are the main changes: 

1.  Increased Temporary Protection: 

• If you temporarily have a lot of money in your account, for example due to the sale of your house, an insurance payment, or a severance payment, your money is temporarily protected up to €500,000. This now also applies in other situations, such as compensation for damage caused by criminal activities or payments from pensions or life insurance payments. 
• This extra protection is now valid for six months instead of three months after the deposit of the money. 

2. Other important changes: 

• You have five years to request your money back if you have to rely on the deposit guarantee. 

• De Nederlandsche Bank (DNB, the Dutch Central Bank) will have more opportunities to improve the payment process and the communication around it. 

• There will be a change later that stipulates that certain organizations such as partnerships or companies (such as a general partnership or limited partnership) are seen as a single entity for the deposit guarantee, with protection up to €100,000 per bank. This is in addition to the protection for the individuals who are part of that organization. 

These changes ensure that people receive extra protection if they temporarily have a lot of money in their account and that it is clearer who exactly is covered by the deposit guarantee.