Deposit insurance Hungary





What is protected?

2:56 PM, January 7, 2004
Domestic deposit insurance protection covers registered bank deposits (deposit documents, deposit account receivables) placed with banks licensed in Hungary or with their branches abroad, and bonds and certificates of deposit issued by banks after 1 January 2003. (For simplicity's sake, henceforth we refer to the above types of savings as deposits, unless there is some significance regarding the difference between them.)

We would also like to remind you here that the Fund's insurance covers only its member institutions, i.e. banks, savings and credit co-operatives and building societies and their branches abroad, if the regulations of the host country allow it.

Caution! Deposits may only be collected by credit institutions, and only such institutions may be members of the Fund or of a foreign deposit insurer. Certificates of deposit may only be issued by credit institutions. Bonds, however, may be issued by other bodies such as local governments and business associations as well. In terms of deposits, the condition for insurance is that they must be registered, and for bonds and certificates of deposit, a further criterion is that they must have been issued after 1 January 2003.



Is my bank insured?

3:03 PM, January 5, 2004
The deposit insurance system comprises the member institutions of the National Deposit Insurance Fund, i.e. banks, savings co-operatives, home savings banks and credit co-operatives.

The Act refers to all of these collectively as credit institutions, but for the sake of brevity we will use the term 'bank' throughout this leaflet. Only member institutions of the Fund may accept deposits. If you wish to take advantage of deposit insurance protection, before placing your deposit make sure that the institution you have selected is a member of the Fund, or find out what official deposit protection guarantee it offers. Should you have any doubts, do not hesitate to contact the National Deposit Insurance Fund.

Once a deposit is frozen, what must a client do to receive the money as soon as possible?

Besides the bank, the Fund is also obliged to inform depositors. Based on current practice, daily press and announcements provide information on where indemnity claims can be submitted and when the payments start. On this basis the depositor must submit the indemnity claim at the designated location. The claim will be checked by the Fund with the bank's records then the depositor will receive notification on where and when the money will be available.



Do deposit insurance claims ever expire?

Deposit insurance claims can be made for as long as the original claim could have been recovered from the bank. Savings deposits, for example, do not expire, while other deposit claims are valid for five years, provided the contract does not stipulate a shorter deadline. Certificates of deposit expire after ten years following the passing of the payment deadline, bond claims do not expire. However, registered certificates of deposit and bonds issued by banks are only insured if they were purchased after 1 January 2003.


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