GSFT Leaflet

Leaflet of the Guarantee system in pdf format (in CZK only) for download here.

The Financial Market Guarantee System - Your Savings are protected

The Financial Market Guarantee System is comprised of two funds:

  • Deposit Insurance Fund - insurance for individual and corporate deposits in banks, building societies and credit unions against the bankruptcy of these institutions.
  • Crisis Resolution Fund - a source of funding for the restructuring of banks, building societies and credit unions where necessary to ensure continuation of their core activities and to restore their viability without an impact on insured depositors.

Who is insured?

The insurance covers the deposits of individuals, companies and small municipalities.

What deposits are insured?

  • Deposits in current accounts
  • Deposits in savings accounts
  • Deposits in term accounts
  • Deposits in deposit accounts and passbooks.

What is not insured?

  • Bills/notes and securities (shares, bonds, unit certificates)
  • Pension savings, life insurance
  • Membership deposits of credit union members
  • Subordinated debts (deposits that the insured institution is entitled to partly include in its capital)

How much is insured?

The insurance covers 100% of the deposit up to EUR 100,000 per client per institution.

Where deposits are insured?

  • In banks
  • In building savings banks
  • In cooperative credit unions

Failure of a bank, cooperative credit union or building savings bank, what happens next?

  • Day 0 (=record day) – The CNB announces a financial institution’s inability to meet its obligations. The FMGS informs depositors and commences preparations for deposit compensation payout.
  • Day 1-3 – Preparation of the data for the payout of deposit compensation.
  • Day 4-6 – Checks of the data and their transfer to the payout bank. The FMGS informs depositors about the place, method and date of the payout commencement, and transfers the data to the payout bank. Distribution of information letters to clients.
  • Day 7 – Commencement of deposit compensation payout through the payout bank.

What do I need to do to collect my deposit compensation?

  • All you have to do is show up at the selected branch of the payout bank and present your identity card or passport.
  • A natural person who is an entrepreneur (a self-employed person) must also submit an extract from the Trade Register.
  • A legal person’s representative must also submit an extract from the Commercial Register or from other records.

Insurance of deposits above EUR 100,000

The Guarantee System may also disburse increased compensation beyond the basic insurance limit for so-called ‘temporary high balances’.

What conditions have to be met for temporary high balances?

  • The account was credited with an amount from the sale of a property used for residential purposes, or an inheritance, the settlement of marital property, an insurance indemnity from an accident, illness, disability or death, etc.;
  • This amount was credited to the account no more than 3 months before the record date;
  • The depositor is a natural person.

What is the limit of increased compensation?

The payout limit can reach up to the equivalent of EUR 200,000 per depositor per institution.

Q & A

How can I find out that my bank has failed?

The fastest way is from media outlets (TV, radio, the press, news websites) that report on these types of cases. News about bank failures can also be found on the website of the Guarantee System, and usually also on the website of the failed financial institution.

Will I be refunded the amount saved including interest on the deposit?

The insurance also covers interest on deposits calculated on the record date.

What if my deposit at a bank exceeds EUR 100,000?

Providing that the conditions for the payment of increased compensation are not met, you will be paid the maximum basic compensation amount, i.e. the equivalent of EUR 100,000. You will need to claim the remaining balance as a receivable from the bank in insolvency proceedings / in liquidation.

More Q & A

More questions and answers can be found here.