GUARANTEED PRODUCTS

Only deposit banks are permitted to take deposits. Under law only those deposit products that are offered by deposit banks may be called deposits. These are either demand deposit accounts or fixed-term accounts (fixed-term deposits) with standard terms and conditions, which are opened in the depositor’s own name. Only deposit accounts are protected by the deposit guarantee. Other account types are investments by nature, and therefore not subject to the deposit guarantee. One of the characteristics of a deposit is that the bank has provided the depositor with a deposit account agreement as well as the general terms and conditions of deposit accounts. Compensation for funds deposited in a bank account (as well as those still in the payment transmission process) comes from the assets of the Deposit Guarantee Fund, up to a maximum amount of EUR 100,000.

ASSETS OBTAINED FROM THE SALE OF A RESIDENCE

The deposit guarantee covers, for a fixed term of six months, assets obtained from the sale of a residence if the assets are to be used to acquire a new residence for the depositor's own use. The claim is paid in full if the depositor can reliably verify that the claim is based on assets which the depositor has received from the sale of a residence in his own use and that the assets will be used to acquire a new residence for the depositor's own use. This special protection of assets obtained from the sale of a residence is fixed-term and valid for six months after the assets have been deposited.

DEPOSIT GUARANTEE IS PERSONAL, NOT ACCOUNT-SPECIFIC

Regardless of the number of deposits or accounts, one depositor’s aggregate deposits in one bank are compensated up to EUR 100,000. Banks that have partial or full responsibility for each other’s commitments and obligations are considered as one bank in terms of deposit guarantee. In Finland, the bank groups are: OP Financial Group, Savings Banks Group and POP Bank Group.

ACCRUED INTEREST

The deposit guarantee also covers interest payable according to the terms and conditions of the account, at least until the date on which the Financial Stability Authority decides on the Deposit Guarantee Fund's liability. The interest is however included in the maximum amount compensated, and therefore the maximum amount compensated is EUR 100,000, regardless of the interest rate.

ASSETS OBTAINED FROM THE SALE OF A RESIDENCE

The deposit guarantee covers, for a fixed term of six months, assets obtained from the sale of a residence if the assets are to be used to acquire a new residence for the depositor's own use. The claim is paid in full if the depositor can reliably verify that the claim is based on assets which the depositor has received from the sale of a residence in his own use and that the assets will be used to acquire a new residence for the depositor's own use. This special protection of assets obtained from the sale of a residence is fixed-term and valid for six months after the assets have been deposited.

DEPOSIT ACCOUNTS

BANK ACCOUNT

Bank accounts are covered by the deposit guarantee.

FIXED-TERM DEPOSIT

Fixed-term deposits (fixed-term accounts) are covered by the deposit guarantee.

HOME SAVINGS INCENTIVE ACCOUNT

Home savings incentive accounts with state-subsidised loan are covered by the deposit guarantee.

LONG-TERM SAVINGS ACCOUNT (PS)

Long-term savings accounts (PS) are covered by deposit guarantee. The guarantee also covers the deposit account or fixed-term deposit that is the object of investment.

The deposit guarantee of Swedish ISK accounts (Investeringssparkontoprodukt) corresponds to the deposit guarantee of long-term savings accounts (PS).

FOREIGN CURRENCY ACCOUNT

The deposit guarantee is in effect regardless of the currency in which the account is denominated.

The Fund may choose to pay the compensation in foreign currency. However, as a rule the Fund is not obligated to pay compensation in any currency other than euro. The holder of a foreign currency account must consider the potential currency risk.

INVESTMENT-LINKED DEPOSITS

The deposit guarantee scheme is not intended for high-risk investments. In addition, the deposit interest must be easily calculated in advance. Investment-linked deposits may therefore have only limited deposit guarantee.

Investment-linked deposit refers to a deposit product in which the interest rate is fully or partially tied to the performance of the underlying instrument (e.g. basket of shares) instead of the passing of time. Additional interest refers to interest rate or return that is tied to the performance of the underlying instrument (e.g. the value of a basket of shares) instead of the passing of time. Guaranteed interest refers to a predetermined interest rate that is tied to the passing of time.

The capital and guaranteed interest of an investment-linked deposit are covered by the deposit guarantee. But the additional interest on an investment-linked deposit does not fall within the scope of the deposit guarantee.

PRODUCTS NOT COVERED BY THE DEPOSIT GUARANTEE

MONEY MARKET INSTRUMENTS

Money-market instruments are not covered by the deposit guarantee. Money-market instruments include e.g. Certificates of Deposit issued by banks and money-market investments. Money-market investments are sometimes erroneously called money-market deposits. However, a money-market investment differs from a deposit for example in that it is not subject to general account terms and conditions and the customer only receives a certificate of the investment.

CLIENT ASSET ACCOUNTS IN INVESTMENT OPERATIONS

Client asset accounts in the name of an investment service provider are not covered by the deposit guarantee. This is due to the division of duties between the Deposit Guarantee Fund and the Investors’ Compensation Fund, which are two separate funds. The Deposit Guarantee Fund was established to protect depositors, and the Investors' Compensation Fund to protect investors. These assets are therefore not covered by the deposit guarantee; the Investors' Guarantee Fund is responsible for protecting them.