Are my savings guaranteed in French banks? Are you concerned after all recent negatives news from bank failures? We have done some research and will explain in this blog what are those guarantees and how it works in case you need it.
Table of Contents
Who guarantees my savings in French banks?
The French government guarantees your savings through the FGDR (Fonds de garantie des dépôts et de résolution). It was created back in 1999 with the objective to protect bank’s customers in case of bankruptcy.
Therefore, this guarantee covers all your savings accounts in France. So let’s understand the key points:
7 business days
Is the time that will take to get your funds back after your bank blocked it
100 000€
Is the amount covered by bank & person (current and savings accounts)
100 000€
Is per bank & person of ‘special’ centralized accounts (Livret A, LEP, LDDS)
How are my savings guaranteed in French banks?
The FGDR guarantee is applied per Bank and per person. It means that all your accounts within the same bank up are covered up to 100k€.
As example: If you have a joint account with your couple, then you will be considered as 2 different individuals, then 200k€ protection.
Additionally, you can open as many accounts as you need to expand your guarantee limit. This guarantee applies per bank. So if you have 3 accounts in different banks, then you are covered up to 300k€.
Is my 'Livret A' part of the 100k€ guarantee?
Special centralized accounts like Livret A, LEP, and LDDS have their own guarantee up to 100k€. This means that it comes on top of the FGDR guarantee. Yes, there are lot’s of guarantees in France!
Are my stocks protected in France?
Yeap! You are protected up to 70 000€ per person and account. The amount is calculated as per the day your bank filed bankruptcy.
As a requirement, your stocks needs to be hold by a french-registered broker. Therefore, this guarantee does not cover brokers registered outside France (like in Chypre, or Cayman Island…).
Any other special guarantee?
Imagine you just sold your house and received an important and exceptional amount of money. By bad chance, the very same next day your bank files for bankruptcy. What a bad day!
Even if this happens to you, there is no reason to panic. Special and pounctual deposits like this are covered as well during 3 months (up to 500k€).
Conclusion
We hope you will be able to sleep better after reading this article and have a better understanding on how your savings are guaranteed in French banks. It really depends on the amount of money you have, but the official guarantees are enough to cover savings and deposits for most of the people.
Else, you have a rich person problem 😉 – which you may solve by opening multiple accounts in different banks once you reach the 100k€ limit.
At any case, we recommend you to read carefully the official government site for more precise and up-to-date information.
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Bon chance!
Disclaimer
Please remember that we are neither financial nor tax advisors. We are just sharing our best understanding based in our own experience. This blog is for educational purposes only. Do not make investment decisions solely based on what you read in this blog. What works for us, may not work for you. Do your own research and look for professional service if required. Read our full disclaimer in the ‘about’ page.
