In the event of insolvency of a Luxembourg Bank, all cash deposits are guaranteed up to the amount of 100,000 euros per person and per institution.
Guaranteed deposits are deposits in any form, in any currency and for any duration, including all accrued interest, even where it has not yet fallen due, on such deposits.
The guarantee also protects investors by guaranteeing the reimbursement of their claims arising out of investment instruments up to the amount of 20,000 euros.*
Investment instruments are transferable securities and investment fund shares, money market instruments, futures, future interest rate contracts (FRA), "SWAPS" and options on currencies and financial instruments.
The Guarantee covers both natural persons and corporate bodies. However, only small European corporate bodies are covered.
If a member of the AGDL is no longer able to reimburse deposits or claims to customers,the latter must in principle be compensated within a time limit of three months.
Please refer to the Association pour la Garantie des Dépôts, Luxembourg” (AGDL) website, www.agdl.lu, for more information on the deposit guarantee and investor compensation scheme.
* Securities will normally not form part of the bankruptcy assets because they are the property of the customer and are kept off balance sheet. In practice, the customer should therefore be able to recover them if the institution defaults.
