NETHERLANDS Law and Practice Contributed by: Johannes de Jong and Juliet de Graaf, Osborne Clarke N.V.
Accounts Eligible for Protection Under the Dutch DGS Various types of accounts are eligible for protec - tion under the DGS. These include: • Payment accounts: This category covers standard bank accounts used for daily finan - cial transactions, such as current accounts. • Savings accounts: These accounts, specifi - cally designated for saving money, which may offer interest on the saved amount, are protected. • Fixed-term deposits: These are deposits made for a fixed period, often at a fixed inter - est rate, and cannot be accessed until the term ends without incurring penalties. • Life-cycle saving schemes: These accounts are designed for long-term saving, often linked to significant life events like retirement. • Bank savings accounts: Similar to regular savings accounts, these accounts may have specific terms and conditions regarding deposits and withdrawals. • Investment accounts: These accounts hold investments rather than cash. It is important to note that while the account itself may be covered, investment products (like shares or bonds) held within these accounts are not covered by the DGS. Furthermore, subor - dinated deposits are generally not covered by the DGS. The types of account holders covered include: • Natural persons: Personal account holders, irrespective of their age, nationality, or resi - dence status, are covered by the DGS. • Businesses: Small, medium, and large busi - nesses holding accounts in participating banks are eligible for protection.
• Associations and Foundations: Non-profit organisations, including associations and foundations, are also covered under the scheme. • Joint Account Holders: Accounts held jointly by multiple individuals are protected. The coverage is typically divided equally among the account holders unless a different division is agreed upon. Notably, the DGS excludes certain account hold - ers from its protection, such as account holders involved in financial crimes and account hold - ers who have failed to provide necessary identity verification documents. Maximum Reimbursement The maximum reimbursement under the DGS is in principle EUR100,000 per account holder per bank. This applies collectively to all the accounts a person holds with the same bank. Joint accounts and accounts held in the names of two or more legal persons have their cover calculated proportionately, unless a different division is agreed upon in advance. The limit of EUR100,000 still applies in these cases. In prin - ciple, account holders have five years to claim their deposits. In certain cases, a temporary limit of EUR500,000 applies for account balances of natural persons. Since September 2024, this limit covers tempo - rarily high account balances in connection with: • the sale or purchase of a principal residence; • pension payments; • severance payments; or • insurance payouts. The temporary limit applies up to six months fol - lowing the respective deposit.
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