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Deposit guarantee scheme and investor compensation scheme

 

What is the deposit guarantee scheme?

If a bank goes bankrupt, the deposit guarantee scheme (DGS) protects private individuals and certain business customers that hold their money at that bank. This protection is not unlimited.

You are eligible for compensation under the deposit guarantee scheme if:

  • your bank participates in the deposit guarantee scheme; and
  • the product is covered by the deposit guarantee scheme; and
  • you are an account holder eligible for compensation under the deposit guarantee scheme.

Read the important information on the deposit guarantee scheme in the Depositor Information Sheet www.triodos.co.uk/dis . Triodos Bank will send you this Information Sheet or a reference to it each year, a reference can also be found on your account statements when these are provided.

Triodos Bank is covered by the Dutch deposit guarantee scheme.

All banks in the Netherlands licensed by De Nederlandsche Bank (DNB, the Dutch Central Bank) participate in the Dutch Deposit Guarantee Scheme.

Triodos Bank in the UK is part of Triodos Bank NV which is based in the Netherlands and has a banking licence from DNB. Because we are part of Triodos Bank NV, our UK depositors are covered by the Dutch deposit guarantee scheme, rather than being covered by the Financial Services Compensation Scheme (FSCS) in the UK.

Products covered by the deposit guarantee scheme

Money held in current accounts and savings accounts are covered by the DGS.

Products not covered by the deposit guarantee scheme

Securities such as shares or bearer bonds are not covered by the DGS. In practical terms, this means that investments in the Triodos investment funds including Stocks and Shares ISAs, and Depository Receipts representing shares in Triodos Bank are not covered by the deposit guarantee scheme. However, these products may be covered by the Investor Compensation Scheme, please see below for more information.

Who is covered by the deposit guarantee scheme?

The following people and legal entities may in principle claim for compensation under the DGS:

  • Private individuals: natural persons, including minors.
  • Individuals in self-employment. Balances held by individuals in self-employment in business and personal accounts are treated as a single person, so that the balances are added together to determine the maximum cover.
  • Legal entities may also claim independently under the guarantee scheme regardless of size, meaning that both small companies and large corporations are covered. Foundations and Associations may also claim independently under the deposit guarantee scheme. Examples of legal entities include: public limited liability companies, private limited liability companies, foundations, associations, co-operatives, mutual insurance societies and churches.

Who is not covered by the deposit guarantee scheme?

The following are not eligible to claim compensation under the deposit guarantee scheme

  • Financial institutions such as:
    • banks,
    • investment firms,
    • insurance and reinsurance companies,
    • collective investment schemes and their management companies,
    • Undertakings for collective investment transferable securities (UCITs)
    • pension funds.
  • Government bodies

The website of De Nederlandsche Bank provides a complete list of who is entitled to compensation and the legal entities and natural persons excluded from cover under the DGS http://www.dnb.nl/en/about-dnb/consumers-and-dnb/consumers-and-supervision/depositogarantiestelsel/index.jsp .

What is the limit of cover provided by the deposit guarantee scheme?

The deposit guarantee scheme guarantees up to €100,000 per person. The scheme applies per person per licensed bank, regardless of the number of accounts that they hold.

This limit applies to the total of any deposits you have with all branches of Triodos Bank.

For joint accounts held in the names of two people, both account holders can claim compensation up to €100,000 each. A balance of €200,000 held in a joint account is therefore fully covered.

Temporary higher balance guarantee on home sales

If a credit balance is directly related to the purchase or sale of a privately owned home, the maximum sum guaranteed is €500,000. This is an additional guarantee that applies for a period of three months after the money is deposited into the account.

Currency of any payment from the deposit guarantee scheme

The deposit guarantee scheme will pay out any compensation in Euros.

This will need to be converted to sterling by you. The amount you receive in sterling will depend on the currency exchange rate on the date you make the transaction.

More Information on the deposit guarantee scheme

What is the Investor Compensation Scheme?

If you hold an investment product e.g. Triodos investment funds including Stocks and Shares ISAs, and Depository Receipts representing shares in Triodos you may be eligible to claim under the Investor Compensation scheme.

Under the Investor Compensation Scheme, private individuals and small companies may claim compensation of up to €20,000 per person if, in the context of providing an investment service, a financial institution is unable to meet its obligations. For example, a situation in which a financial institution is not able to transfer shares held in a client’s investment account. A depreciation in value of the investment due to a fall in price is thus not covered by the investor compensation scheme.

For further information, see the web pages of De Nederlandsche Bank on the Investor Compensation Scheme.

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