Guaranteed bank deposits: resources for the system on the rise

The surplus of savings accumulated since the start of the health crisis is increasing the pressure on the Fonds de garantie des dépôts et de résolution (FGDR). This fund, which is responsible for protecting savers' bank deposits, has seen its resources grow rapidly, and now has a record amount outstanding.

FGDR up nearly 15% year-on-year

The health crisis has prompted the French to save more than in normal times. This rise in bank deposits has increased pressure on the Fonds de Garantie des Dépôts et de Résolution (FGDR), whose role is to compensate customers up to 100,000 euros in the event of their bank's failure.

According to the FGDR's recently published 2021 annual report, its resources reach the sum of 6.1 billion euros, representing an increase of almost 15% between 2020 and 2021. A total of 5.8 billion euros will be allocated to the protection of bank deposits.

By the end of 2020, FGDR resources had already grown by 8.2% year-on-year, with the scheme expected to cover over €100 billion more than in 2019.

Over 1,400 billion euros in protected deposits

The guarantee fund is financed by the banks, whose net contributions reached 770.40 million euros in 2021. A total of 758.42 million euros has been collected to guarantee deposits.

At the end of 2021, 1,417 billion euros of bank deposits were protected by the FGDR. The FGDR is required tocompensate customers of failing banks within 7 working days.

A range of products are covered, including current accounts, government-regulated passbooks (Livret A, Livret de développement durable et solidaire LDDS, Plan d'épargne logement PEL, Compte épargne logement CEL, Livret d'épargne populaire LEP, Livret jeune) and cash accounts linked to an employee savings plan, a pension savings plan (PER) or a share savings plan (PEA).


In the case of deposits considered "exceptional and temporary", such as the proceeds of a property sale, severance pay, inheritance, bequest or gift, the FGDR activates an additional guarantee and compensates customers up to 500,000 euros, provided the sums have been cashed for less than 3 months.