If a deposit bank were to face financial difficulties and become insolvent, you would receive your deposited funds within seven working days. The deposit guarantee scheme is statutory and automatic.
All Finnish banks are covered by the domestic deposit guarantee scheme. Deposit banks have a legal obligation to inform their customers about the basic issues related to deposit guarantee and to provide their customers with sufficient information about it, including its level and the organization responsible for it.
The bulletin 'Tietoa talletussuojasta' [About deposit guarantee] is sent by the banks to their deposit customers annually either as an online bank message or a paper letter. It does not require any action from the depositor. If you have any questions regarding your own deposits or your banking services, please contact your own deposit bank.
In Finland, the Financial Stability Authority is responsible for the deposit guarantee scheme under the Act on the Financial Stability Authority.
The Financial Stability Authority (FFSA) is responsible for maintaining the deposit guarantee scheme, making decisions in the event of a compensation situation, and implementing the compensation payments.
National deposit guarantee schemes have been harmonised in key respects by EU legislation. A deposit guarantee scheme is a statutory system protecting deposits and maintained by the deposit bank's home country. Deposits within the scope of the scheme are covered regardless of the depositor's country of residence or nationality.
The deposit bank’s permanent establishment determines the country whose deposit guarantee scheme the bank falls within. As regards a foreign deposit bank operating in several countries, the responsibilities and duties of each national deposit guarantee scheme are determined based on whether the foreign deposit bank had a subsidiary or branch in the country, or whether it operated on a cross-border basis without a permanent establishment.
1. Foreign banks’ subsidiaries operating in Finland on a cross-border basis fall within the scope of Finland's deposit guarantee. A foreign deposit bank’s subsidiary operating in Finland is considered a Finnish deposit bank for the purposes of deposit guarantee.
2. Branches of foreign banks operating in Finland are covered by the deposit guarantee of their home country. Where a foreign bank has a branch in Finland, the Financial Stability Authority pays deposit guarantee compensations to the depositors of the branch on behalf of the deposit guarantee scheme of the deposit bank’s home country. In this case, a branch refers to a permanent establishment of a bank from another EEA country located in Finland, from which the bank pursues its business activities in Finland.
3. Foreign banks providing deposit services in Finland on a cross-border basis are covered by the deposit guarantee of their home country. Deposit guarantee compensations are paid by the home country of the deposit bank. In this case, the Financial Stability Authority is not involved in the payment of the compensations, since the bank does not have a permanent establishment in Finland.
We maintain a list of deposit guarantee schemes applicable to banks operating in Finland. You can check the home country and deposit guarantee scheme applicable to your deposit bank on the list.
You can find out if a bank is protected under the deposit guarantee scheme from the Financial Stability Authority (FFSA) and the deposit bank itself. The FFSA keeps a list of the Finnish banks operating in Finland that are in the deposit guarantee scheme. The bank itself must provide depositors with adequate details concerning the deposit guarantee and any changes to information previously given before an account is opened and while the account is active.
As a rule, the deposits of all depositors are protected under the scheme. Deposit guarantee is personal. It applies separately to the deposits of each family member – including minors – and each joint owner of a deposit account. Note that merely having the authority to use an account is not the same as being the account owner.
All private persons are within the scope of the deposit guarantee scheme. It is not tied to the depositor’s citizenship or place of residence. The estates of deceased persons, companies regardless of their company form and size, registered associations and foundations are also depositors.
As a rule, the deposits of companies and associations are within the scope of the deposit guarantee scheme, but self-employed entrepreneurs (i.e. sole proprietors) do not have an independent deposit guarantee for their business-related deposits. Consequently, the business-related deposits and personal deposits of a self-employed entrepreneur are treated as a single depositor’s deposits when calculating the compensation amount.
The deposit guarantee scheme only applies to deposits. This includes ordinary bank accounts, for example. As a rule, deposits by all depositors – meaning account owners – are covered by the deposit guarantee scheme. Examples of deposits include current accounts, savings accounts and home savings incentive accounts.
The amount of deposit guarantee compensation is based on the depositor’s account balance. Assets in transit, such as incoming payments and any interest accrued on the account, are also included in the compensation amount.
The maximum compensation amount is EUR 100,000 per depositor and deposit bank. Savings banks and cooperative banks that are members of an amalgamation of deposit banks are considered as one deposit bank.
Assets obtained from the sale of a residence are an exception to the main rule on the guaranteed amount. They are compensated, subject to a separate application, with no upper limit when the depositor can prove that the assets were obtained from the sale of a residence that was in the depositor’s own use and that the assets were deposited on the account no more than six months earlier and are intended for the purchase of a new residence for the depositor's own use.
In case of the bankruptcy of a bank, the deposit guarantee fund compensates for deposits up to a maximum of EUR 100,000. The depositor can claim the amount exceeding this maximum amount from the bankruptcy estate. However, this involves uncertainty and is affected by the assets of the bankruptcy estate and the number of creditors. Claiming deposits exceeding EUR 100,000 from the bankruptcy estate does not require any action by the depositor.
Assets obtained from the sale of a residence are an exception to the main rule on the guaranteed amount. They are compensated, subject to a separate application, with no upper limit when the depositor can prove that the assets were obtained from the sale of a residence that was in the depositor’s own use and that the assets were deposited on the account no more than six months earlier and are intended for the purchase of a new residence for the depositor's own use.
The FFSA must make any compensation available to depositors within seven (7) working days of the date on which the Authority’s liability begins, i.e. from the time when insolvency has been established and the Authority has taken a decision to repay the deposits.
In circumstances regarding compensation the FFSA obtains details of all accounts and depositors from the insolvent bank. The Authority processes the information and sends each depositor a decision regarding compensation. Depositors receive a notification of their balance(s) and the amount of compensation due, and instructions on what to do to receive the guarantee protection compensation. The Authority then pays the compensation by credit transfer into an account notified by the depositor.
The deposit guarantee scheme covers each owner of a joint account separately. If a depositor has assets in a joint account, the balance of the joint account is divided evenly between the account owners in a compensation event and the deposit guarantee compensation is paid separately to each account owner’s share. If a joint account’s terms of use include “the OR provision”, it does not mean that only one of the account owners will be compensated.
The deposit guarantee scheme only covers deposit products. Investment products, such as shares, are not within the scope of the deposit guarantee scheme. Equity portfolios are in the custody of the bank and are not part of the bankruptcy estate if the bank is declared bankrupt. Book-entry securities accounts are not within the purview of the Financial Stability Authority.
Instead, the administrator of the estate makes the relevant decisions in accordance with the Bankruptcy Act, Act on Book-Entry Accounts and Act on Equity Savings Accounts. More information on guarantees concerning investment instruments is available from their providers
Cash assets in an equity savings account are within the scope of the deposit guarantee scheme. The deposit guarantee scheme does not, however, safeguard investment instruments under an equity savings account agreement or the returns earned on investments.
The deposit guarantee scheme only covers deposit products. The potential principal protection components of other products are not guaranteed by the deposit guarantee scheme. More information on guarantees concerning investment instruments is available from their providers. Banks have an obligation to provide their customers with sufficient information on deposit guarantees.
You can find more information on the deposit guarantee scheme on this website. Banks also have an obligation to provide their customers with sufficient information on deposit guarantees.
If necessary, you can contact the Financial Stability Authority by e-mail at talletussuoja(at)rvv.fi or by telephone on +358 (0)295 253 530.