Deposit Guarantee Scheme in Luxembourg

Information Leaflet – A Deposit Guarantee Scheme Reimburses a Limited Amount to Compensate Account Holders Whose Bank in Luxembourg Has Failed

Deposit Guarantee Scheme Luxembourg: The Fonds de garantie des dépôts Luxembourg (FGDL) provides compensation of bank depositors in case of unavailability of their deposits held at member institutions of the FGDL. The FGDL provides the necessary funds for the repayment of unavailable deposits, in principle within 7 working days, up to EUR 100,000 per person and per institution.

Secured Deposit Limit: 100.000 euros per depositor per bank.

Additional Insured Coverage: Some temporary high balances are more widely covered by the deposit guarantee. The standard EUR 100,000 protection is increased for specific and pre-defined account holders to EUR 2,500,000, provided that said amounts have been credited or may have been legally transferred less than 12 months prior to the unavailability of the deposits.

DGS Activation and Payout Events: The deposit guarantee scheme is triggered automatically when deposits with a credit institution member of the Fonds de garantie des dépôts Luxembourg (FGDL), are considered unavailable. This is esrablished by:

  • the Commission de Surveillance du Secteur Financier has determined that for the time being, and for reasons which are directly related to its financial situation, the institution concerned appears to be unable to repay the deposit and the institution appears to have no current prospect of being able to do so; or
  • the District Court in Luxembourg sitting in commercial matters has ordered the suspension of payments or winding up of the member institution, for reasons which are directly applicable to its financial situation.

Claim Filing Procedure: When credit institutions in Luxembourg fail and cannot be rescued, a judicial liquidation is announced via the media and designated websites. A liquidator is appointed and the DGS is activated. Creditors and account holders are invited to provide the liquidators with a statement of claim showing their privileged or secured and unsecured outstanding balances.

Claim Submission Timeframe: Around the fourth day after the determination of the unavailability of the deposits, the FGDL sends each depositor a letter of information drafted in several languages – accompanied by a form. Depositors are requested to return the completed and signed form to the FGDL. This form allows the depositor to communicate to the FGDL a new account number with another bank on which the refund will be transferred. Depositors who have not received a letter up to the eighth day from the date of determination of unavailability should contact the FGDL by email or telephone.

Repayment Timeframe: As a general rule, the FGDL mobilizes the funds required for repayment within seven working days of the date on which the deposits are determined unavailable. The repayment by bank transfer is made as soon as the FGDL has received the necessary information to carry out said transfer from the depositor. The repayment period is of three months in cases where additional verifications have to be conducted prior payout.

Repayment Conditions: As soon as the depositor has communicated new bank details to the FGDL, the amount to be repaid will be made available within a few days via bank transfer. However, in certain specific situations that are dependent on the status of the depositor or the accounts, the FGDL is required to carry out additional verifications to determine the amount to be reimbursed. The FGDL may contact the depositors concerned to request additional information.

DGS Claim Rejections: Not all deposits, creditors and deposit amounts are covered by the FGDL. Reinspection of a pending or rejected DGS claim is possible by providing sufficient evidence of claim eligibility to the FGDL, bank liquidators or the court.

Scheme Architecture: The fund reserve of 332 million euros is paid up by FGDL members who make standard and periodic risk-based contributions to the fund. According to European legislation, every national deposit guarantee scheme must reach a capitalization equivalent to 0.8% of the deposits it covers by 3 July 2024.

Need Help To Submit Your DGS Claim or to Substantiate a Rejected DGS Claim? Contact us Today…

  • Visit:
  • Call: 00357 25 057 544 or 001 646 513 2855
  • Email: [email protected]
  • Complete the contact form below:


    Your name

    The name of your bank

    Your telephone number

    Your email