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Frequently asked questions

Procedure for obtaining compensation

Where can I collect my compensation?

You can collect your deposit compensation at selected branches of the payout bank . These branches are listed here.

In case you cannot collect the compensation in person you can choose payout of the compensation via bank transfer by written correspondence. Please send a pre-filled "Compensation Transfer Request" form to the payout bank. Sample forms for "Compensation Transfer Request for natural person" as well as "Compensation Transfer Request for legal person" are available on Documents required to obtain compensation page. The request can be sent also electronically via data box to the adress of the payout bank. In this case, instruction must be signed with a personal electronic signature based on a qualified certificate. These certificates are generally provided byPostsignum Qualified (Česká pošta s.p.), První certifikační autorita, a.s., and eIdentity a.s. in the Czech Republic or by foreign providers). In the case of authorised legal entities, the application must be sent from the company’s data box and signed with a qualified electronic signature of the persons authorised to act for the company according to the Commercial Register.

What documents do I need if I want to collect my compensation?

If you are a natural person (citizen), you will only need an ID card or passport. A natural person who is an entrepreneur (a self-employed person) must also furnish an extract from the Trade Register. If you want to collect compensation as a representative of a legal person, you must, in addition to an identity document, furnish an extract from the Commercial Register or other register not older than 3 months before the date when you collect the compensation. In the case of amounts exceeding the equivalent of EUR 15 000, other documents may also be required to verify the identity of the beneficial owner.

How will my compensation be paid?

The money will be transferred to another account you own (i.e. by bank transfer) or paid out in cash. If you intend to receive a deposit compensation exceeding CZK 100,000 in cash, it is imperative to notify the chosen branch of Komerční banka at least two (2) business days in advance.

I am not in the Czech Republic at the moment and I am not planning to go there now. Can I obtain the compensation anyway?

In this case, you have two options how to proceed. You can claim your compensation by correspondence - by sending the form "Compensation transfer request" (sample form here) to the adress of the payout bank. The second option is to grant power of attorney to another person that can collect compensation for you. Whichever option you chose, please note that signature on both documents has to be officially certified.

If the signature is certified outside the Czech Republic, the certification by an embassy of the Czech Republic, or certification of the signature by a foreign authority with the addition of an apostille clause or superlegalization is required. If an agreement on legal assistance has been concluded with the state in question, official certification of the signature by a foreign authority with the addition of an official translation into the Czech language is sufficient.

Can the payout bank divide the compensation over several bank accounts or only to one account?

After identifying the client, the payout bank will pay the compensation either in cash or by bank transfer to the account specified by the client. In this case, it is not possible to divide the compensation and send it to several accounts; the compensation may only be sent in full to a single account. The client will receive appropriate proof of the payout at a branch of the payout bank.

Does the enforcement order apply to the componesation payout od receivables from deposits?

Bailiffs who, as part of the enforcement proceedings, have issued an enforcement order for the payment of receivable from account at a failed bank, are reminded that the claim for compensation for a deposit receivable is not a receivable from account, but a so-called other monetary receivable, for the assignment of which a new enforcement order for the assignment of this so-called other monetary receivable must be issued and delivered to the Financial Market Guarantee System.

Who can withdraw compensation

Who can collect compensation in case of legal persons?

It is usually the statutory body. Full list of persons entitled to collect compensation can be found here.

Can I authorize someone else to collect the compensation?

Yes, you can grant another person power of attorney, which will be issued exclusively for the payout of compensation for deposits. A sample power of attorney can be found here. The principal’s signature on the power of attorney must be officially certified. In the case of power of attorney issued abroad, its translation into Czech must be officially certified.

Can the compensation be collected by any person authorized to dispose of the funds on the account of the bank for which the payout is to be made (i.e. the so-called disponent)?

No, the only person who may collect the deposit compensation is the one in whose name the account is kept (in special situations stipulated by law, the compensation may be collected by the owner of the funds on the account). Authorization to dispose of the funds on the account (e.g. in the case of the so-called ‘disponents’), without the person concerned being the person in whose name the account is kept, does not in and of itself establish the right to collect deposit compensation.

Who is authorized to claim compensation when the account belongs to a minor?

In such instances, the legal representative or guardian is entitled to collect the compensation. If the compensation exceeds 50,000 CZK and the legal representative intends to deposit these funds into their own account or withdraw them in cash, they must obtain a decision from the guardianship court. Alternatively, the funds can be transferred to an account owned by the minor, in which case no decision from the guardianship court is required.

What is the procedure for the payment of compensation for a deposit that has been in the custody of a lawyer or a notary public?

Upon establishment or upon the earliest disposal of the custody account, the notary public or lawyer was obligated to inform the bank of the actual owner of the funds concerned. If the notary public or lawyer has complied with this obligation, the compensation will paid to the person so designated by the notary public or lawyer. In the event that the deposit exceeds the statutory insurance limit, i.e. the equivalent of EUR 100,000, and, at the same time, the conditions for the payment of an increased compensation have been met, it is possible to ask the Financial Market Guarantee System, within two months of the reference date, for the payment of an increased compensation for the deposit.

How is compensation paid where the depositor is insolvent?

If insolvency proceedings are being conducted against a depositor as the debtor, it depends on the specific stage of the insolvency proceedings. If the insolvency proceedings are based on an insolvency petition and the court has not yet made a decision on bankruptcy and an insolvency administrator has not yet been appointed by the court, compensation for the claim from the insolvent debtor’s deposit with the bank is paid to the insolvent debtor. However, if the insolvency court has already decided on the debtor’s bankruptcy and appointed an insolvency administrator, compensation for the claim from a deposit belonging to the bankruptcy estate is paid to the insolvency administrator.

Compensation amount

At what exchange rate are the deposits converted to establish thr equivalent ot the EUR 100,000 limit?

The Czech crowns equivalent of the limit is calculated using the foreign exchange rate published by the Czech National Bank as at the record date.

Does deposit insurance also cover interest accrued on deposits? I.e. will I be refunded the amount saved including interest on deposit?

This insurance also covers interest on deposits, which is calculated as at the record date.

I had a foreign currency account with a bankrupt bank. In what currency will I receive my compensation?

The compensation is paid out in the currency of the country in which the relevant account is situated. In the case of an account maintained in the Czech Republic, compensation will be disbursed only in Czech crowns. The conversion will be made using the rate published by the Czech National Bank as at the record date.

What if my deposit at a bank exceeds 100,000?

Providing that the conditions for the payment of increased compensation are not met, you will be paid the maximum basic compensation amount, i.e. the equivalent of EUR 100,000. You will need to claim the remaining balance as a receivable from the bank in insolvency proceedings / in liquidation.

How is the deposit compensation amount calculated?

For the purposes of deposit compensation payout, all the insured deposits of a depositor at the institution for which the payout is to be made are added up, including interest calculated as at the record date. The amount of deposit compensation paid out is 100% of this aggregate sum of deposits, but a maximum of the equivalent of EUR 100,000.

Deadlines

How soon after the collapse of a bank will I get my money back?

Your compensation will be ready for payout after 7 working days from the “record date” (i.e. day when the Guarantee System receives the Czech National Bank Notification about the inability of the bank to meet its obligations to eligible persons under statutory and contractual conditions)

What is the deadline for collecting my compensation?

Deposit compensation will be paid out over a period of three years following the payout start date. You can collect your compensation at any time during this period.

When is it possible to come for the payout of compensation for which the maturity date was arranged after the compensation payout start date?

In terms of the payout of deposit compensation, it is irrelevant whether the maturity date of the deposit was arranged for a date after the start date of the deposit compensation payout. The compensation will be provided from the first day when the payout starts according to the status as at the record date, regardless of whether the maturity date of the deposit was arranged for a later date.

Reclaims

What should I do if I go to a branch of the payout bank and I am not on the list of eligible persons entitled to receive deposit compensation? Or if I am on the list but I do not agree with the compensation amount to be paid out?

In both these cases, you will need to use the complaint process - more information can be found here.

If your are a foreigner having the czech personal birth number and you are not on the list of entitled depositors, it is possible that you are not registered under your birth number but your date of birth. Before you fill the claims form, we recommend to verify this at the payout bank branch.

Increased compensations

WILL THE GUARANTEE SYSTEM AUTOMATICALLY CONTACT ME IF I AM ELIGIBLE FOR INCREASED COMPENSATION?

Contrary to the basic compensation payout, the depositor has to fill out an application form if he/she wants to be granted increased compensation for temporary high balance. It is also necessary to enclose legally determined documents proving his/her claim to compensation for temporary high balance.These documents have to be provided either in their original version or in official certified copy. More information can be found here.

I sold my home and the purchase price was sent to my account specified in the purchase contract. I subsequently deposited this money on a term account at another bank, which went bankrupt 2 months after the deposit was made. Am I entitled to increased compensation for a temporary high balance?

Unfortunately not. To be entitled to increased compensation for a temporary high balance, the funds would have to have been credited/deposited on the account directly by the buyer or by an intermediary/custodian in line with the purchase contract. As you however subsequently transferred these funds, they can no longer be considered as a temporary high balance establishing the right to receive increased compensation (the subsequent transfer of the funds meant that this was no longer the payment of the purchase price, i.e. upon transfer, these funds no longer had the nature of the payment of the purchase price resulting from the sale of a residential property, which is protected by an increased deposit compensation limit). This unfortunately also applies if you transfer the funds to another account (e.g. savings account or term account) within the same bank.

I sold my land which is marked as "arable land" in the Land Registry but according to the municipality's zoning plan the land id intended for the construction of a house for residential purposes. Will I be entitled to receive increased compensation (if other outstanding conditions are met)?

The increased compensation can only be paid out if (during the decisive period,) the depositor's account has been credited with the amount representing the purchase price resulting from the sale of real estate serving for residential purposes as recorded in the Land Registry. Such real estate is defined by the use of the building in accordance with Annex point 4 of Decree No 357/2013 Coll., on the Land Registry (Land Registry Decree), as amended. According to this provision, an apartment house or a family house may be considered as real estate serving for residential purposes. Therefore, in case of the sale of land recorded as 'arable land', this condition is not met.

On 1 January 2016, CZK 5,000,000 was received on my account as payment of the purchase price for a residential property. However, it was not possible to use these funds from the date they were credited onto the account, as a court issued a preliminary injunction to block this amount until resolution of a lawsuit from the buyer seeking a discount on the purchase price due to defects in property claimed by the buyer. In the end, the court decided that the buyer was not entitled to a discount on the purchase price. The decision came into force on 1 December 2016, but the bank at which the account was kept went bankrupt a month later, on 1 January 2017. Will I be entitled to increased compensation for a temporary high balance event if the record date occured more than 3 months after the crediting of these funds onto the account?

The Act on Banks stipulates that increased compensation may be awarded to the depositor if the amount in question was credited/deposited onto the account no later than 3 months before the record date. Nevertheless, at the same time, the Act on Banks allows that if the depositor, his/her legal representative or guardian is not entitled, under certain circumstance, to use this amount on the day of crediting the amount to the account, the aforementioned three-month period will not start until the date of obtaining the authorization to use the amount. Thus, in your particular case, this three-month period did not start until 1 December 2016, when the funds were released by the court. As the record date occurred within 3 months after this date, this deposit is protected by an increased deposit compensation limit. If you submit an application for the payout of increased compensation, including all annexes required by law, within 2 months from the record date, you will be entitled to increased compensation.

In the case of a claim from a deposit on an escrow account that is the purchase price for property used for housing, is the buyer or the seller the person entitled to compensation?

The person entitled to compensation for the basic claim from the deposit (up to the limit of EUR 100,000) and at the same time the person who is entitled, on condition that all statutory conditions are met, to submit an application for increased compensation for the claim from a deposit (up to the limit of another EUR 100,000) is always the person who was notified to the bank by the account holder (lawyer or notary) at the opening of the account or at the latest transaction on it as the beneficial owner of the funds on the account. Any notification made after the record date will not be taken into account. If, therefore, the account holder (lawyer or notary) notified the bank that the beneficial owner of the funds is the buyer of property used for housing, the buyer is entitled to compensation for the claim from the deposit and, if all relevant statutory conditions are met, also the right to increased compensation for the claim from the deposit. If the account holder (lawyer or notary) notified the bank that the beneficial owner of the funds is the seller of property used for housing, the seller is entitled to compensation for the claim from the deposit and, if all relevant statutory conditions are met, also the right to increased compensation for the claim from the deposit.

Compensation payout in case of foreign banks branches

In which currency will the compensation for deposits in a Czech branch of a bank with its registered office in another EU Member State be provided?

The compensation will be provided by the Czech Financial Market Guarantee System on behalf of the foreign deposit guarantee scheme, in the Czech currency.