Why do I need an account in the EEA for DGS payments?

Especially now a Brexit comes closer and some specific European banks are at risk, bank customers of European banks that fail keep on asking why they need an account in the EEA to receive DGS payments. The EEA is an abbreviation of the European Economic Area. It is an agreement for the free movement of persons, goods, services and capital within the internal market of the European Union (EU). Therefore only memberstates of the EU participate.

If a bank in the EU fails, only banks in the EEA are part of the European DGS directive. It is therefore only possible to receive compensation from a DGS on a bank account in another EU memberstate.

It is not always easy for bank customers to open a second bank account. Especially for customers of banks like Nemea, FBME Bank and Banca Privada d’Andorra, who are located outside the country where the bank is located, it is difficult to open a second bank account in the EEA.

Often you need to follow a large number of rules to open a second bank account. We therefore assist customers of FBME Bank with the opening of a second bank account to continue their business in the EU and keep an Euro currency account. Furthermore, the additional advantage is that the EEA account qualifies for compensation.