What is the deposit guarantee scheme?

"Deposit Guarantee Scheme (DGS)" is a set of regulations that offers protection for the balances of account holders at financial institutions in the event that these institutions - such as banks - encounter payment problems or go bankrupt.

Since the introduction of the Banking Union on 4 November 2014, the Deposit Guarantee Scheme has been centrally regulated by the European Central Bank (ECB). In the Netherlands, the DGS offers a guarantee of up to € 100,000 per person per institution. If a bank goes bankrupt, De Nederlandsche Bank (DNB) ensures that savers receive their money back within three months up to this maximum. The costs of this compensation are subsequently recovered from other banks in proportion to their business volume.

This scheme is intended to safeguard confidence in the financial system and to ensure that savers do not lose their money if their bank encounters problems.