Deposit guarantee in Finland

Assets deposited in a Finnish bank are automatically protected by a statutory deposit guarantee scheme, which is maintained by the Financial Stability Authority. If the bank encounters financial difficulties and becomes insolvent, the depositor’s assets will be returned within seven working days.

The maximum compensation for guaranteed deposits is EUR 100,000 per depositor per bank. If a depositor holds accounts in several different banks, the deposits in each bank are covered separately up to the maximum compensation limit of EUR 100,000.

How does the deposit guarantee scheme work? 

If a Finnish deposit bank is declared bankrupt or is in permanent default, the Financial Stability Authority will return the deposited assets to depositors within seven working days.

In the event of compensation, depositors do not need to apply for compensation, as the Financial Stability Authority receives the necessary depositor and account information directly from the bank. Based on this information, the Financial Stability Authority makes individual compensation decisions for each depositor. The only action required from the depositor is to provide the account number to which the deposit guarantee compensation should be paid.

 

Chart: This is how deposit protection works in Finland

More information on how is deposit guarantee compensation paid?

What does the deposit guarantee scheme cover?

The deposit guarantee covers all deposits made by private individuals, as well as most deposits held by companies, associations, and foundations.

The amount of compensation is based on the depositor’s account balances. It also includes assets that are on their way to the account, such as incoming transfers in the payment process, as well as any interest accrued on the account.

Assets from the sale of a primary residence are an exception to the general maximum compensation limit. These assets are fully covered by the deposit guarantee if they have been deposited no more than six months before the bank’s insolvency and are intended for the purchase of a new home for personal use.

More information: What deposits are guaranteed?

Who is responsible for the deposit guarantee scheme?

If you deposit money in a deposit bank domiciled in an EU or EEA country*, your deposits are automatically and statutorily protected against the bank’s insolvency through the deposit guarantee scheme of the bank’s home country. You will therefore receive equivalent deposit protection regardless of the bank’s country of origin within the European Union, as the core principles of deposit guarantee schemes are harmonised across all EU member states.

In Finland, the deposit guarantee is administered by the national authority, the Financial Stability Authority.
The deposit guarantee is regulated by the EU Deposit Guarantee Schemes Directive, which harmonises, among other things, the payout period to seven working days and the maximum compensation amount to EUR 100,000.

More information: Deposit guarantees in Europe.

More information: Check your bank’s deposit guarantee in the FFSA-maintained list.

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*_{The European Union (EU) consists of 27 member countries: Austria, Belgium, Bulgaria, Czech Republic, Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.}

_{The European Economic Area (EEA) is a Single Market area consisting of the above mentioned EU member countries together with Norway, Iceland and Liechtenstein.}