What is the guaranteed deposit coverage?

In case bankruptcy proceedings has been initiated against a bank, the Deposit Protection Fund is obliged to reimburse up to 50,000 € to each depositor, regardless of the number and type of deposits held with the failed bank. However, the transitional solution envisages the coverage limit of up to 20,000 € in 2010 and 2011, further increasing to 35,000 € in 2012.  

The guaranteed amount of 50,000 €, that is 20,000 € in 2010 and 2011 and 35,000 € in 2012 also covers any interest accrued to the bank bankruptcy date and it is reduced by the depositor's matured liabilities to that bank (outstanding loan liabilities, current account overdraft, etc.)

Example:
If a depositor holds several accounts in a failed bank which total balances, including any accrued interest, do not exceed 50,000 € (20,000 € in 2010 and 2011 or 35,000 € in 2012), total claims of that depositor on such a bank are protected.

If the total sum of the depositor’s deposits in the bank exceed the guaranteed coverage, the Deposit Protection Fund will reimburse the guaranteed amount of 50,000 € (20,000 € in 2010 and 2011 or 35,000 € in 2012), whereas the depositor's remaining claims on the bank will be settled within the bank bankruptcy proceedings, in line with the Bank Bankruptcy and Liquidation Law.