What is a Deposit Insurance Guarantee?

The Deposit Insurance Fund (similar to FDIC insurance) is like an insurance for your investments in banks. If the bank goes bankrupt, the fund returns your money — up to $50,000 per account holder per financial institution.

What is covered

What is NOT covered

Limits

  • $50,000 per account holder per institution
  • $200,000 in total (global ceiling, renewed every 4 years)

Practical strategy

If you have $100,000 to invest in CDs:

  • Put $50,000 in Bank A
  • Put $50,000 in Bank B
  • Both are 100% covered by the deposit insurance guarantee

Important tip

Smaller banks usually pay higher rates (120‑130% of the interbank rate) precisely because they are less well‑known. With the deposit insurance guarantee, the risk is virtually the same as a large bank — but the return is higher.