Banks and Finance

[Charles Phillips]

I'd be interested to know what sort of 'guarantees' a depositor in an Italian bank has - how sure are they to get their money back in the event of a run on a bank? Are there any guarantees, and if there are, up to what value of deposit? Do any such guarantees apply to current and also cash deposit accounts? Is the situation the same across the Italian retail banking sector?

[timwills]

The guarantees in Italy are a lot stronger than in the UK.
Each deposit is guaranteed up to €100,000.
In the UK each depositor (note the difference) is guaranteed up to about €50,000.

I do not know the actual process of reclaiming money (it has not happened in Italy as far as I know for a long time).

[Charles Phillips]

Actually in the UK it is £30,000 (€37,500). In the US it is $100,000 (€62,500).

Sounds as if the major gloom-mongers might throw some cash at the European banks! (Is the €100,000 pan-European?)

[timwills]

Originally Posted by tennaval

Does the Italian scheme carry on deducting monthly interest while you are waiting for your money?

If it is a deposit the interest should be credited to the account.... however monthly (and a host of other) fees would probably be debited, but getting the capital back would be a bigger concern than either.