The Interbank Deposit Protection Fund, FTID, should make all account holders calm. However, it is not certain that the protection of the current account in the event of bank failure is so absolute and reliable. They try to learn more about some specific cases.
Protection of the current account in the event of bank failure
The crisis of the Cypriot banks and the serious consequences suffered by current account holders have led Europe to strengthen the systems for protecting current accounts.
In Italy there are essentially two instruments: the Interbank Deposit Protection Fund (www.fitd.it) for banks and the Depositors Guarantee Fund for Cooperative Credit Banks (www.fgd.bcc.it/).
We are reassured by the prediction that the money deposited in the current account is covered by the fund, in the event of a crisis or bank failure, up to 100,000 euros. The guarantee works for each account holder and for each bank. So if 200,000 euros are deposited on a current account and the account is in the name of two people, that sum is fully covered by the fund, in case of need. Since the guarantee operates for each deposit at a different bank, if you have 300,000 euros, you should open three current accounts in three different banks to take advantage of the guarantee on each of your accounts.
If necessary, the reimbursement of the amounts that the account holder has lost are reimbursed by the fund in the currency of the current account. For example in dollars, if I had opened an account in that currency. So also pay attention to currency fluctuations, to understand how calm I feel about the repayment.
Attention also to prepaid cards, so widespread as a payment method even for online purchases only. The money transferred from the checking account to the prepaid card is not covered by the FITD guarantee. It is only valid if the prepaid card has an Iban code. In this case, its operation is considered similar to that of a current account, also with regard to the traceability of the money to the cardholder.
It is not necessary to apply to the fund
Repayment takes place automatically and in theory within 7 days of your bank’s failure. However, begin to familiarize yourself with the subject. You can directly consult the two institutional sites that we have indicated at the beginning of the article.
Protection for BancoPosta account holders
The current accounts opened at the post office are spreading a lot, also due to the spread of offices throughout the territory. If you are their client, you should know that BancoPosta does not adhere to the FITD. The State guarantees only the sums deposited in postal savings books and postal bills. The guarantee is high because it also covers amounts exceeding 100,000.00 euros.
But for BancoPosta current accounts the only guarantee that assists you is that of the BancoPosta equity fund. In practice, you are guaranteed by the same savings that Poste manages to collect from year to year. You can check the amount on the Poste website.
In an uncertain period like the present one, the reliability of a guarantee can also be a criterion for choosing which bank entrust your savings.
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