The Deposit Guarantee Fund provides financial coverage to depositors and investors of Danish banks, mortgage credit institutions and investment companies as well as certain investment management companies and managers of alternative investment funds. It also provides coverage to depositors in Danish branches of foreign banks that have applied for supplementary coverage to the guarantee scheme in their country of residence.

The Deposit Guarantee Fund covers deposits and cash funds up to an amount of EUR 100,000 (approximately DKK 745,000).

In addition, certain special deposits with increased coverage are covered for a limited period, for example deposits which pursuant to legislation have social objects, and which are associated with special life events are covered up to an amount of EUR 150,000 for a period of six months from the amount being deposited. Furthermore, deposits resulting from real estate transactions relating to non-traders are covered by up to EUR 10 million for a period of 12 months from the date on which the deposit was made.

Pension funds, e.g. cash deposits into annuity pension and retirement pension schemes, are fully covered.

The Deposit Guarantee Fund also manages the investor guarantee scheme. For investors, this means that coverage is provided up to EUR 20,000 (approximately DKK 150,000) per investor, if the institution fails to return financial instruments which belong to the investor and which are held or managed by the institution.

Danish branches of foreign banks that are resident in another EU or EEA country are generally covered by the deposit guarantee scheme applicable in the foreign bank’s country of residence. It is possible for such branches to apply for supplementary coverage under the Danish scheme. The supplementary coverage is triggered in cases where the Danish scheme provides better coverage than that of the country of residence, e.g. pension accounts and the special deposits subject to increased coverage for a period of 6 to 12 months after the amount was deposited with the bank.

Branches in Denmark of Nordea Bank Abp, Nordnet Bank AB, Ikano Bank AB and Carnegie Investment Bank AB have applied for coverage under the Deposit Guarantee Fund as a supplement to the coverage provided by the national guarantee schemes.

It is the guarantee scheme of the host country which is to make disbursements to depositors on behalf of the guarantee scheme of the country of residence in connection with the resolution of a branch. In certain situations, the Deposit Guarantee Fund may be required to make disbursements on behalf of deposit guarantee schemes of other countries.

For branches of credit institutions that are residents in non-EU or EEA member states, the branch must be a member of the Danish deposit guarantee scheme if the coverage of depositors and investors in the country in which the branch is resident does not equal the coverage of depositors and investors in Denmark.

Additional information on the legislative framework governing the Deposit Guarantee Fund’s coverage is provided on www.fs.dk.