Deposit guarantee

The Danish Guarantee Fund (Garantiformuen) provides you with increased protection

As a customer (depositor) of kompasbank, you are covered by the Danish deposit guarantee scheme, the Danish Guarantee Fund (formerly known as the Depositor and Investor Guarantee Scheme). The guarantee scheme does not cover deposits exceeding EUR 100,000, which is approximately DKK 750,000.

What is the Danish Guarantee Fund?

The Danish Guarantee Fund provides coverage to depositors in financial institutions covered by the scheme in the event that the institution enters reconstruction or bankruptcy proceedings. The scheme is administered by Finansiel Stabilitet (the Danish Financial Stability Company).

How is the amount calculated?

The Danish Guarantee Fund’s coverage is calculated as the customer’s total deposits minus any overdue debt the customer owes to the financial institution. This means that only fully or partially overdue debt is deducted. The Danish deposit guarantee scheme covers a customer’s total deposits up to EUR 100,000, approximately DKK 750,000. Deposits exceeding this limit are generally not covered by the Danish Guarantee Fund.

Special Coverage

Certain deposits are covered beyond the standard coverage limit of EUR 100,000. These include:

  • The Danish Guarantee Fund covers deposits that, by law, serve a social purpose and are linked to specific events or circumstances in a depositor’s life, such as marriage, divorce, dismissal, disability, or death. Deposits originating from compensation or reimbursement under statutory provisions, or resulting from damages caused by criminal acts or wrongful convictions, are also covered. These deposits are protected up to EUR 150,000 (approximately DKK 1,125,000) for up to 6 months after the amount was deposited.

  • Deposits resulting from transactions involving real estate primarily used for non-commercial purposes — for example, deposits of purchase amounts from property sales or proceeds from mortgage loans — are covered up to EUR 10 million (approximately DKK 75 million) for up to 12 months from the date of deposit.

What is not covered by the Danish Guarantee Fund?

The Danish Guarantee Fund does not cover:

  • Guarantees, cheques, securities, capital certificates, and bonds issued by the financial institution that has entered bankruptcy or reconstruction proceedings

  • Deposits from certain types of depositors, such as other banks, mortgage credit institutions, financing companies, insurance companies, and public authorities

  • Deposits, cash funds, and financial instruments originating from transactions for which a judgment has been issued relating to money laundering

  • Deposits and cash funds where the holder has never been identified.

Payout from the Danish Guarantee Fund

If kompasbank enters reconstruction or bankruptcy proceedings, the Danish Guarantee Fund will step in. You will receive an overview of your total deposits and guidance on proceeding. The payout will be made through your new financial institution within seven working days after the Danish Guarantee Fund has been notified.

What should you do to apply for coverage?

Immediately after the bank’s bankruptcy, you will receive information about the proceedings. As soon as possible thereafter, you will receive an overview of your total balance with the bank along with instructions on what steps to take.

Read more about the Danish Guarantee Fund here: About the Danish deposit guarantee scheme.

Also read the Information Sheet – Basic Information about Deposit Protection.