The Guarantee Fund, formerly known as the Depositor and Investor Guarantee Scheme, is a system that protects depositors and investors in the event of a bank bankruptcy.
It covers deposits of up to EUR 100,000 (DKK 750,000) per depositor and includes both private and business customers, including associations and companies. There is special coverage for certain deposits, such as pension accounts and deposits with a social purpose, in accordance with the law.
For joint accounts, each account holder is covered up to EUR 100,000. In the event of a bank bankruptcy, securities are returned to the owner, and the Guarantee Fund covers losses up to EUR 20,000 (DKK 150,000) per person.
The Guarantee Fund does not cover guarantees, cheques, or, for example, shares, hybrid capital instruments, guarantee certificates, and bonds issued by the financial institution itself.
Deposits in special accounts made before 1 January 2020 are covered without limit, whereas deposits made on or after this date are covered up to EUR 100,000 per depositor.
Special accounts include, for example, client accounts held by lawyers and deposits managed by an asset management department.