How the deposit insurance works
Under the deposit insurance scheme, you are reimbursed by the state if the bank or institution in which you have your money fails.
The insurance covers up to SEK 1,050,000 per person per institution.
The deposit insurance scheme contributes to financial stability. Strong consumer protection allows depositors to feel confident even in times of financial instability.
This helps to reduce the risk of a large number of depositors withdrawing their money at the same time and thus contributes to stability in the Swedish economy. The deposit insurance scheme is financed by contributions from the member banks and institutions, which are invested in a fund.
Up to SEK 1,050,000 is covered
If your account is covered by the deposit insurance, you are entitled to compensation equal to the amount that you deposited, including interest, up to the date on which the institution was declared in default or the decision to activate the deposit guarantee scheme was made. The insurance provides compensation up to SEK 1,050,000 per depositor in Sweden. If an account is opened in two or more person’s names, each person is counted separately. Your compensation is not affected if you have debts to the institution.
Deposit insurance activation
Finansinspektionen (the Swedish Financial Supervisory Authority) may also decide that the deposit insurance scheme is to be activated. The deposit insurance scheme also applies if the Debt Office takes control of a bank or institution in crisis through the process known as resolution.
To whom does deposit insurance apply?
Deposit insurance applies to all private persons (including minors), as well as companies and other legal persons, such as the estate of a deceased person. However, financial institutions, public and local authorities are not eligible for compensation.
Accounts covered by deposit insurance
All types of accounts are covered by the deposit insurance regardless of whether your savings are restricted or free to withdraw. However, individual pension accounts are not covered. Deposit insurance also does not apply to bank money orders (cashier’s cheques) because these fall outside the definition of deposits under the Deposit Insurance Act.
For client accounts, the main rule is that every individual owner of the money receives compensation up to the maximum amount covered. A client account is an account whereby a law firm or a securities company, for example, has deposited money for several customers in a single account.
Right to higher compensation in certain cases
You can also apply for an additional amount, up to SEK 5 million, for deposits from transactions serving a certain social purpose, for example if you have sold a private residential property. The application for an additional amount is only made after a compensation case has arisen.
If you have an account in a foreign bank or institution
Here you will find information about what applies to you as a customer of a Swedish bank or institution abroad, or if you are a customer of a foreign bank or institution in Sweden.