Frequently asked questions

The FGDR’s financial resources are proportionate to the intervention risk. Its own funds amounted to €6.106 billion at 31/12/2021. 
The FGDR’s mission is to protect the customers of a bank or financial institution. The FGDR’s team has the ability to deploy all the necessary tools and resources to intervene in a bank that may be in trouble.
If a “systemic” institution is in difficulty, the national or European resolution mechanisms would be initiated. The FGDR collects funds for this mechanism and is part of the French Collège de Résolution. 
On a broader scale, the Single Resolution Board and the Single Resolution Fund (SRF) in the euro zone would be called upon. The SRF currently has €24 billion and this amount is expected to exceed €60 billion by 2024. 
 
→ Refer to the "About the FGDR/Figures” section

The Chairman of the FGDR's Executive Board acts within the framework of the FGDR's public interest mission. The FGDR's Executive Board performs a general management function under the control of the Supervisory Board and within the strict framework of the internal regulations that serve as articles of association. It acts at the request of the Prudential Supervision and Resolution Authority (ACPR). The appointment of the Chairman of the FGDR's Executive Board is subject to the approval of the Minister of Economy, Finance and Public Accounts. 
Members of the FGDR’s Executive Board are bound by bank secrecy and, more broadly, secrecy about all the FGDR’s activities. They are subject to supervision by the High Authority for Transparency in Public Life, as are all members of the Collège de Supervision and Collège de Résolution, the Governor of the Banque de France i, the Chairman of the Financial Markets Authority (AMF) and the ACPR's Sanctions Committee. 

→ Refer to the “About the FGDR/Organisation” section
→ Refer to the “Document database/Legislative and regulatory texts” section

Following the measures issued by the French government related to the COVID-19 crisis, the FGDR implemented its business continuity plan on 17 March 2020. All employees have continued to work remotely. The FGDR has remained in contact with all its service providers and partners, who have also implemented their business continuity plans. Even during such an event, the FGDR has been able to operate and carry out its missions.

→ Refer to the “About the FGDR/Organisation” section

In principle, the FGDR does not comment on the situation of banks or of the banking and financial sector in general. The body in charge of supervising banking institutions is the Prudential Supervision and Resolution Authority (ACPR), and we do not comment on the actions of the ACPR, which works in strict confidentiality.
As regards COVID-19, the FGDR is operating and, as in normal times, is fully carrying out its mission of protecting customers and ensuring the stability of the banking and financial sector.  

→ Refer to the “About the FGDR/Partners in France” section

During regular controls that are used to check that each institution is complying with the FGDR's regulatory requirements, the data sent in the Single Customer View (SCV) file is anonymised and then deleted within 15 days. 
However, in the event of a bank failure, the FGDR needs the information sent by the failed institution to compensate customers. It processes this data with the high level of security applied to banking sector standards, and in strict accordance with the legal requirements. 
This information is stored securely and used exclusively to compensate customers of the failed institution.

→ Refer to the “The FGDR’s mission/Activities” section

As a general rule, the deposit guarantee scheme covers all amounts deposited in accounts at a bank regardless of the currency in which the accounts are denominated, including current accounts, demand or term accounts, passbook accounts (savings accounts, Livret Jeune savings accounts, etc.), home savings accounts and schemes (CEL, PEL) and cash accounts associated with equity savings schemes (PEA), pension savings schemes (PER) or equivalent held at a banking institution.

All amounts deposited in savings accounts guaranteed by the French government are covered: Livret type "A" savings accounts (and Livret type "Bleu" Crédit Mutuel savings accounts), Livret type "LDDS" and "LEP" savings accounts. These accounts are covered by the French government guarantee up to €100,000 per customer, per institution. This guarantee is independent of and in addition to the guarantee that covers other deposit accounts.
 
Furthermore, the FGDR covers all securities and financial instruments:

• stocks, bonds, units of an open-end investment company (SICAV) or mutual fund (FCP) held in an equity savings scheme (PEA) or securities account;
• certificates of deposit, negotiable debt instruments (TCN).
   

Important note: the investor compensation scheme is initiated only when two conditions are met:

• the securities have disappeared from your accounts;
• the institution at which your account is held is in suspension of payments and cannot return or reimburse the securities.

 
LISTS OF PRODUCTS NOT COVERED BY THE FGDR
Products not covered by the FGDR or covered by another guarantee scheme include:

• life insurance policies and capitalisation policies taken out with an insurance company;
• pension savings schemes (PER, PERP, PEP) with an insurance company;
• collective pension savings schemes (PERCO), inter-company collective pension savings schemes (PERCO-I), company pension savings schemes (PERE);
• company savings schemes (PEE), inter-company savings schemes (PEI);
• notes, coins and items entrusted to your bank’s safety deposit department;
• anonymous deposits or instruments with a holder who cannot be identified;
• electronic-based cash and payment cards issued by a payment institution or an electronic money institution (PI/EMI account such as Nickel, Lydia, etc.);
• deposit of equity (partnership shares);
• savings certificates;
• cryptocurrencies.

 
→ Refer to the “Discover my guarantees/products covered and not covered” section
→ Refer to the FGDR Brochure
→ Refer to the Glossary

1) A joint account is divided equally among its co-holders prior to calculating the compensation accruing to each of them, unless otherwise specified in the agreement.
Each co-holder combines their share of the joint account with their other deposit accounts and is eligible for a compensation ceiling of €100,000, independently of the other co-holders.
 
2) Example:
Person A has an individual account with a balance of €6,000.
Person B has an individual account with a balance of €8,000.
Together they have a joint account with a balance of €3,000.

• The compensation amount for which person A is eligible is: €6,000 + one-half of €3,000 = €7,500;
• The compensation amount for which person B is eligible is: €8,000 + one-half of €3,000 = €9,500.

 
DISTINCTION BETWEEN A JOINT ACCOUNT AND A JOINT SIGNATORY ACCOUNT
3) Note: a joint account is different from a joint signatory account.
A joint account can be used by either of the co-holders. Its name generally includes the words “Person A or Person B”.
A joint signatory account can only be used with all the co-holders’ signatures. Its name generally includes the words “Person A and Person B”.  
 
Both types of accounts can be opened for more than two people.

→ Refer to the FGDR Brochure
→ Refer to the Compensation by the FGDR information notice

The Livret type "A" savings account is an account guaranteed by the French government, as is the case for Livret type "LDDS" and Livret type "LEP" savings accounts. All amounts deposited in these savings accounts are guaranteed by the French government and compensated by the FGDR up to a maximum of €100,000 per customer, per institution.
Amounts deposited in current accounts and in other savings accounts and savings plans (Compte d’Epargne Logement (CEL) home savings plans, Plan d’Epargne Logement (PEL) home savings plans, ‘Livret Jeune’ savings accounts, etc.) are covered by the FGDR’s deposit guarantee scheme and compensated up to a maximum of €100,000 per customer, per institution.
The two guarantees are independent and added together. 
 
→ Refer to the "Discover my guarantees/I have savings and other bank accounts” section.
→ Refer to the FGDR Brochure

In France, the compensation amount offered by the investor compensation scheme may be as much as €70,000 x 2 per customer, per investment services provider.
 
The principle is that financial securities are held by a bank or an investment services provider on behalf of their customers. The securities belong to those customers and must be returned to them, even if the bank or service provider fails. 
However, if the bank or service provider is unable to return or repay them because the securities have disappeared from the accounts, the Fonds de Garantie des Dépôts et de Résolution intervenes to compensate customers for the missing amount, up to a maximum of €70,000 per customer, per institution.
 
Scenario 1: If your securities are held at a bank, the cash accounts associated with the securities accounts are covered by the deposit guarantee scheme, added to all other deposits and compensated up to a maximum of €100,000.
 
Scenario 2: If your securities are held at an investment firm (an investment services provider that is not a bank), the FGDR compensates not only your securities up to €70,000 but also your cash associated with the securities accounts up to a maximum of €70,000.
 
 → Refer to the “Discover my guarantees/I own securities” section

The FGDR's investor compensation scheme is initiated when the ACPR determines that the service provider is no longer able to return to its customers the securities and other financial instruments and associated cash entrusted to it.
 
This implies that two conditions have been met simultaneously:

• the securities have disappeared from your accounts;
• the institution at which your account is held is in suspension of payments and cannot return or reimburse the securities.

 
In this case, the investor compensation scheme pays compensation based on the value of the financial instruments and cash that are no longer available to the customer.
The cash associated with the securities accounts is also compensated:

• included in the amounts covered by the deposit guarantee scheme up to €100,000, if your securities account is held by a bank;
• up to €70,000 if your securities, and therefore the associated cash account, are managed by an investment firm or investment services provider. 

 
The investor compensation scheme does not cover possible changes in the market value of the securities or commercial disputes between the customer and the service provider (for example, relating to management of the portfolio).
 
→ Refer to the “Discover the compensation process/I own securities” section

As a general rule, the deposit guarantee applies to all banking institutions that are members of the FGDR, including those operating as on-line banks. Banks increasingly offer online or remote banking services. However, you should ask your bank to find out whether the online services offered to you are provided under a trademark created within a banking institution working under another name, and which banking institution this is. Indeed, the benefit of the deposit guarantee scheme up to €100,000 per customer and per institution only applies once within the same banking institution operating under several trademarks.  

To verify your coverage under the deposit guarantee scheme, check the Bank i Code shown on your bank account details. All accounts with the same “Bank Code” are added together under the €100,000 ceiling since they are held by the same banking institution. 

→ Refer to the “Check if your bank is protected” section using the “Bank code” shown on your bank account details.

Bitcoin and other cryptocurrencies are not covered by the deposit guarantee scheme.
The FGDR’s guarantee only covers products denominated in euros or in the official currency of another State.
 
The FGDR is not aware of any products offered by its member banks that are denominated in a cryptocurrency.

→ Refer to the “Discover my guarantees/I have savings and other bank accounts” section

Employee savings schemes (company savings schemes (PEE), collective pension savings schemes (PERCO)) are covered by the investor compensation scheme. 
A saver's assets held through company savings schemes (PEE) and collective pension savings schemes (PERCO) are invested in units of company mutual funds (FCPE).  
These securities are held in an account at a “custody account-keeper” investment firm, but they remain the property of the saver, even if this institution fails. The custody account-keeper is a member of the investor compensation scheme, which therefore protects the employee savings assets, the company mutual funds (FCPE) and associated cash.

→ Refer to the “Discover my guarantees/I own securities” section

The FGDR, created by the law of 25 June 1999 to serve the public interest, protects customers in the event that their bank or financial institution fails. By protecting customers, it helps to maintain confidence in and ensure the stability of the banking system.
 
→ Refer to the “The FGDR’s mission” section

You do not need to take any action with your bank or the FGDR. 
On the “deposit unavailability date”, the institution is declared as having failed and customers can no longer access their accounts or use their payment instruments (cheque books, cards). Compensation i by the FGDR is initiated automatically.
 
The institution prepares the customer account statements as of the failure date and sends you a final account statement. It then sends this information to the FGDR, which uses it to calculate your compensation. During this time, the FGDR informs customers of the initiation and status of the procedure on its website. It answers questions via its call centre.
 
The FGDR issues compensation to recipients within a maximum of seven working days for the deposit guarantee scheme. This period may be extended only in cases where special processing is requested. 
Similarly, the FGDR handles the entire compensation process if the investor compensation scheme also becomes effective. The compensation period is three months for the investor compensation scheme, which is more complex because the disappearance of the securities needs to be resolved. 

• You are responsible for opening or reactivating an account at another bank as quickly as possible in order to complete your day-to-day transactions and receive your compensation. The failure of a banking institution causes your accounts and the associated payment facilities (bank card, cheque book) to be blocked;
• We recommend that you keep your bank and your investment services provider informed of any change in name, postal address, email address and telephone number for yourself or those in your care. This information is needed to ensure that your bank is able to contact you and so that the FGDR can compensate you within the required period. Otherwise, your compensation may arrive late or not at all.
   

 
→ Refer to the “Discover the compensation process/I have savings and other bank accounts” section
→ Refer to the “Compensation by the FGDR” information notice

In France and throughout the European Union, the amount of compensation under the deposit guarantee scheme is capped at €100,000 per customer, per institution.
 
1/ PRODUCTS COVERED BY THE DEPOSIT GUARANTEE SCHEME
The guarantee covers all deposits, savings and other accounts held by a customer at a single banking institution, regardless of the currency in which they are denominated:

• current accounts, deposit accounts, demand and term accounts with a credit balance;
• savings accounts and savings plans (Compte d'Epargne Logement (CEL) savings account, Plan d’Epargne Logement (PEL) savings plan, Plan d’Epargne Populaire (PEP) savings plan, etc.);
• Livret Jeune savings accounts;
• cash accounts associated with an equity savings scheme (PEA), a pension savings scheme (PER) or equivalent held at a banking institution;
• bank cheques issued and not cashed;
• the total net balance of factoring transactions.
   

 2/ REGULATED SAVINGS ACCOUNTS COVERED BY THE FRENCH GOVERNMENT GUARANTEE
All amounts deposited in regulated savings accounts guaranteed by the French government are covered up to a maximum of €100,000 per customer, per institution:

• Livret type "A" savings accounts (and Livret type "Bleu" savings accounts in the Crédit Mutuel network);
• Livret type "LDDS" savings accounts;
• Livret type "LEP" savings accounts.

 
The French government guarantee is independent and is added to the FGDR’s deposit guarantee. The FGDR pays compensation for these savings accounts at the request and on behalf of the French government.
 
→ Refer to the “Discover my guarantees/I have savings and other bank accounts” section
→ Refer to the FGDR Brochure

As a general rule, any credit institution or investment firm that receives authorisation from the Prudential Supervision and Resolution Authority (ACPR) is a member of the Fonds de Garantie des Dépôts et de Résolution (FGDR). 

Membership in the FGDR is a prerequisite for conducting its business. Customers are then covered by the FGDR's guarantees. 

The FGDR also covers customers of branches opened by its members in a country of the European Economic Area (EEA) i.
Conversely, customers of branches of European banks opened in France are covered by the guarantee scheme of the country in which that bank has its head office. 
In both cases, the FGDR cooperates with its European counterparts to cover customers of these branches so that they are treated under the same conditions as customers of their bank's head office.

 
→ Refer to the “Document database/Legal framework/International regulation” section

→ Refer to the “Check if your bank is protected” section to check whether your bank or investment services provider is covered by the FGDR 

→ Refer to the “About the FGDR/Members” section

STEP 1: INITIATION OF THE COMPENSATION PROCESS
The FGDR intervenes when a bank or investment firm is no longer able to return the deposits collected or the securities entrusted to it. On the unavailability date, the institution is declared as having failed. The compensation process is initiated by the Prudential Supervision and Resolution Authority (ACPR), which then contacts the FGDR to initiate the compensation process immediately. The institution is closed and declared as having failed. Customers no longer have access to their accounts and will be compensated within a maximum of seven working days by the FGDR for their deposit accounts, savings accounts and savings schemes.
Life insurance i policies are not compromised by the bank’s closure because these products are purchased from an insurance company, which has not been declared as having failed.   
 

STEP 2: PREPARATION OF COMPENSATION: ACCOUNT STATEMENT AND TRANSMISSION OF INFORMATION TO THE FGDR.
The institution prepares its customers’ account statements and sends this information to the FGDR.
The FGDR calculates each customer’s compensation and then prepares a compensation letter for each customer which includes:

• information about the customer's accounts,
• the list of covered accounts and excluded accounts,
• the compensation calculation,
• the non-compensated amounts,
• the compensation cheque, if applicable,
• and the “Compensation by the FGDR” information notice.
   

STEP 3: AVAILABILITY AND PAYMENT OF COMPENSATION

The FGDR opens a Secure Compensation i Area (SCA) on its website to issue compensation to recipients:

• either by bank transfer, after the customer has entered new bank details, or by cheque sent with acknowledgement of receipt;
• in both cases, the customer receives correspondence that includes a letter and a compensation statement for accounts covered by the deposit guarantee scheme, another for savings accounts subject to the French government guarantee, and an information notice.

The maximum compensation period is seven working days for the deposit guarantee scheme and three months for the investor compensation scheme.
This period may be extended only in special cases or those requiring more complex processing.

Following receipt of their compensation, customers have two months to file a claim with the FGDR for additional compensation for “temporary high balances” or to dispute their compensation. This claim must include the documents proving these temporary high balances in their savings and other accounts protected by the FGDR.

 
STEP 4: HANDLING OF SPECIAL CASES
The FGDR continues to process special cases, additional compensation relating to “temporary high balances” and any claims until they are completed.

Important note: customers are strongly advised to inform their bank of any changes in their name, postal address, email address or telephone number. This is needed to ensure the quality of the information exchanged between you, your bank and the FGDR in case of compensation.

→ Refer to the “Discover the compensation process” section
→ Refer to the “Compensation by the FGDR” information notice

You have “temporary high balances”, i.e. amounts that were received less than three months prior to the failure and come from:

1. the sale of a residential property belonging to you;
2. a lump-sum payment of compensation for harm sustained by you;
3. a lump-sum payment of a retirement benefit, an estate, a bequest or a donation;
4. a compensatory benefit or a settlement or contractual indemnity following the termination of an employment contract.

The €100,000 coverage level is increased by an additional €500,000 for each of the above events, except for compensation for bodily injury for which there is no limit.

HOW TO CLAIM COMPENSATION: 
To exercise your right to compensation for your temporary high balances, you must write to the FGDR within a maximum of two months of receiving your final compensation letter and provide the supporting documents showing that these deposits were made.

→ Refer to the “Discover the compensation process/I have savings and other bank accounts” section

→ Refer to the “Compensation by the FGDR” information notice

As for any company a bank fails when it defaults on its payments. In other words, a bank failure occurs when the bank is no longer able to pay its debts by the due date or repay its creditors, at which time the bank must be closed and liquidated.
 
When depositors entrust their money to their bank, they become the bank's creditors and the bank is indebted to them since it must return their funds to them.
 
If a bank were to fail, the customers would lose access to their accounts and their payment facilities (cheque books, cards). They would be ordinary creditors of a closed and liquidated bank. They would be treated like any other ordinary creditors, and compensated at the end of the liquidation with the funds recovered by the liquidator i. Such a situation would be very prejudicial to the bank's customers and, more generally, to the economy as a whole. This is simply unacceptable in a modern society where banks play such a major role. 

→ Refer to the “The FGDR’s mission” section

Deposit guarantee schemes have been in place in all European countries and around the world for many years. In France, this scheme is managed by the FGDR. As soon as a troubled bank is on the verge of failing, and before the failure occurs, the Prudential Supervision and Resolution Authority (ACPR) asks the FGDR to intervene to protect customers’ assets.
 
Furthermore, in order to prevent the risk of a failure, banks are subject to strict rules regarding capital, equity, risk and liquidity management. Compliance with these rules is closely and continuously monitored by the ACPR, and by the European Central Bank (ECB) and the European Banking Authority (EBA) for institutions operating in Europe. All measures relating to banks’ capitalisation, risk and liquidity have been reinforced significantly since 2008 at both the local and international level. 

The FGDR could also intervene if a troubled bank had to be restructured prior to a suspension of payments, particularly by providing financing, either through a preventative intervention or through a resolution intervention. It would do so at the request of the ACPR. 
 
In France, banking institutions have doubled their own funds in the space of 10 years. The stability of the banking sector has been strengthened considerably in recent years. By protecting customers' assets, the FGDR helps to maintain confidence in the banking and financial system and ensure its stability as a whole. 

→ Refer to the “The FGDR’s mission/Compensation intervention” section
→ Refer to the “The FGDR’s mission/Preventative intervention” section
→ Refer to the “The FGDR’s mission/Resolution intervention” section
→ Refer to the “Document database/Regulatory texts” section

Banks are now required to send their customers an information notice each year to inform them about the protection provided for their savings and other bank accounts covered by the deposit guarantee scheme, i.e. about the guarantee that applies to their current accounts, passbook accounts, savings schemes, Comptes d'Epargne Logement (CEL) home savings accounts, Plans d’Epargne Logement (PEL) home savings schemes, 'Livret Jeune' savings accounts, etc. and about their regulated savings accounts covered by the French government guarantee (Livret type "A" savings accounts, Livret type "LDD" savings accounts and Livret type "LEP" savings accounts).
 
This information notice describes how your deposits are protected in case of the bank’s failure. It is not a marketing offer. This document is sent to you annually to inform you about the protection provided for your bank accounts. 

When you open a new bank account or savings account that is covered by the deposit guarantee scheme or the French government guarantee, this information notice is given to you to ensure that you have read it when making a commitment to your bank.

→ Refer to the “Discover my guarantees/I have savings and other bank accounts” section
→ Refer to the “The FGDR’s mission/Relations with the general public” section

The protection provided for your accounts by the deposit guarantee scheme in the event of your bank's failure has existed since the FGDR’s creation in 1999.
 
This notice on your account statement became mandatory in July 2016. Its purpose is to inform customers about the protection provided for their savings and other bank accounts, whether they are covered by the deposit guarantee scheme or by the French government guarantee.
 
The words “Protected by the deposit guarantee scheme” appear on account statements for current accounts, passbook accounts, savings schemes, Comptes d'Epargne Logement (CEL) home savings accounts, Plans d’Epargne Logement (PEL) home savings schemes, ‘Livret Jeune’ savings accounts, etc.
The words “Protected by the French government guarantee” appear on account statements for your regulated savings accounts with French government guarantee (Livret type "A" savings accounts, Livret type "LDDS" savings accounts and Livret type "LEP" savings accounts).
 
→ Refer to the “About the FGDR/History” section
→ Refer to the “Discover my guarantees/I have savings and other bank accounts” section
→ Refer to the “The FGDR’s mission/Relations with the general public” section

Since 2015 and the transposition of the “DGSD2” Directive, banking institutions have been required to inform customers about the guarantees that protect their savings and other accounts. 
The FGDR has increased its communication with the banking sector and journalists and on social networks.

Banks must now inform their customers more broadly by: 

• mentioning the protection provided by the deposit guarantee scheme on every periodic statement of covered accounts;
• giving prospects an information notice about the protection offered by the deposit guarantee scheme before a savings or other account is opened and having them sign it when the covered account is opened; 
• sending this same notice annually as a reminder.

 
→ Refer to the “The FGDR’s mission/Relations with the general public” section
→ Refer to the “About the FGDR/History” section
→ Refer to the “Document database/Legal texts” section