Bank deposits are considered insured. Insurance of deposits of individuals
The banking crisis makes investors worried about the safety of their money. Many people have a question about how the law on deposit insurance works, whether there is a high probability that the money will be returned if the bank experiences force majeure circumstances. Insurance of deposits of individuals is provided by the state, however, the bank where an individual has a deposit must be a participant in the system for guaranteeing the return of finances to individuals in legal relations. To quickly return your money, you need to know the nuances of the deposit insurance system.
What is deposit insurance
To avoid panic among the population associated with disruptions in the work of financial and credit organizations, the cessation of their activities, the state introduced insurance of deposits in banks, that is, guaranteed amounts of compensation that are paid to the depositor. World practice shows that state insurance of deposits of individuals is a reliable and effective mechanism that reduces the socio-economic consequences of the crisis in the banking sector.
The mechanism is needed to build the trust of individuals in banks, encouraging them to invest in “long-term” deposits designed for more than one year. However, since the Central Bank of Russia (CBR) prefers not to close banking structures, but to carry out a health-improving set of measures to correct the crisis situation, in which individuals always have access to their finances, the insurance system is less relevant than 3-5 years ago.
How does the deposit insurance system for individuals work?
The agreement on attracting savings must state that the bank participates in a program to protect the savings of the population implemented by the state. This gives individuals confidence that in the event of force majeure circumstances, when the financial structure cannot fulfill its obligations to depositors, the latter are guaranteed to receive their money from the Agency that provides deposit insurance. The Agency’s operating mechanism is based on Russian legislation, which details the rights of depositors to receive compensation.
Regulatory framework
Compensation for insurance amounts is carried out in accordance with Federal Law No. 177 of December 23, 2003 “On the insurance of deposits of individuals in banks of the Russian Federation,” which determines the norms, rules, and amount of obligations for which insurance of deposits of individuals is carried out. According to this legal act, any physical entity of legal relations with the bank can submit a petition to the authorized body for reimbursement of funds that the bank is unable to pay for its obligations.
The state guarantees citizens a refund under the following conditions:
- The financial and credit organization is included in the register of banks participating in the program for compensation of funds on deposits. According to the law, when concluding an agreement to attract finance, any banking structure must inform an individual about its presence in the register.
- The contract for attracting financial resources is valid on conditions that fall within the definition of an insured event.
Deposit Insurance Agency
The State Corporation Deposit Insurance Agency is the regulator of the relationship between a financial organization and individuals. The agency operates based on 177-FZ, and the amount of funds that can be used to compensate individuals is more than 85 billion rubles. The Agency receives this property from bank transfers (any financial structure to obtain a license from the Central Bank must transfer a certain percentage to the compulsory deposit insurance fund), or from investments.
The agency is actively working on procedures related to the bankruptcy of banking institutions, carrying out rehabilitation measures for their rehabilitation, and providing support to voluntary investors. The Board of Directors of this state corporation includes representatives of the Central Bank and senior government officials, which provides the maximum guarantee of return of money according to the requirements of depositors.
Banks included in the state deposit insurance system
On the DIA website you can see that the following financial structures are in the register of participants:
- Sberbank of the Russian Federation;
- VTB 24;
- Alpha Group;
- Promsvyazbank;
- Raiffeisenbank;
- Bank Rosgosstrah;
- Renaissance Credit;
- Rosselkhozbank;
- Russian standard.
According to the DIA, the register includes more than 850 financial organizations. If a private depositor, when concluding a bank deposit agreement, is not presented with official data that the financial institution insures deposits of individuals, then he is faced with fraudsters. Any bank must necessarily participate in the program for compensating deposits to individuals.
Insurance of bank deposits - features of the procedure
According to 177-FZ, any funds deposited by an individual subject of legal relations to a bank, with the opening of a bank account, to acquire benefits in the form of interest payments, as well as interest that accrues during the use of this money by a financial institution, are considered insured. Such deposits include both ruble and foreign currency savings of individuals. The maximum amount of deposit insurance, according to the amendment dated December 19, 2014, is set at 1.4 million rubles. The following types of financial assets are considered insured and are subject to return:
- sent to various deposits, time and on demand, in rubles and foreign currency;
- placed on accounts providing for the payment of salaries, benefits, pensions to physical subjects of legal relations;
- intended for the needs of private entrepreneurs;
- placed on the accounts of guardians and trustees for the transfer of funds to their wards;
- available in escrow-type accounts, which are intended for transactions of individuals for the purchase and sale of real estate;
- located on debit physical plastic media issued by this financial institution.
What funds of individuals are not subject to compulsory insurance?
You should be aware that the legislation provides for exceptions under which certain types of amounts of money stored by objects of legal relationships in banks are not subject to compensation, and insurance of deposits of individuals does not apply to them. These include:
- Amounts in the accounts of citizens providing legal assistance to private individuals (lawyers, notaries), if this money is spent on work needs.
- Bank deposits issued to bearer.
- Finances that an individual transfers to a bank for investment under trust management.
- Money held in foreign branches of Russian banks.
- Funds for the transfer of which a debit account cannot be opened (electronic payments).
- Additional amounts of money in nominal metal impersonal accounts.
Insurance cases
According to the law, insurance of individual savings is carried out in the following cases:
- If the Central Bank revokes the license issued by it from the bank. The register participant is subject to the introduction of external management and no longer has the right to work with individuals and legal entities, manage finances, and fulfill its obligations to clients.
- When the Central Bank introduces a moratorium on creditor claims. This situation arises during bankruptcy proceedings of a credit institution for the purpose of debt restructuring. Monitors the implementation of the DIA moratorium; this state can last 12 months, after which a decision is made either to terminate it or to extend it for six months.
Revocation of CBR license
The main bank withdraws the license issued by it to carry out banking activities from the financial organization under the following circumstances:
- if the bank exceeds its authority and carries out risky operations to issue large non-performing loans;
- reduction of the authorized capital below the amount stated in the constituent documents;
- if the financial structure purposefully and constantly does not comply with the requirements of the Central Bank of the Russian Federation;
- if it is impossible to satisfy the claims of creditors and claims of clients regarding the bank’s obligations;
- when identifying fraudulent money laundering schemes or providing incorrect reporting data;
- failure to comply with court decisions;
- critical reduction in cash balances below 2%.
The day after the license is revoked, the Central Bank introduces external management to put the financial structure in order and its subsequent liquidation. Individuals may apply for reimbursement of funds deposited with a given banking organization 2 weeks after recording the occurrence of this insured event, provided that their funds were insured.
Introduction of a moratorium by the Central Bank on satisfying the claims of bank creditors
This measure is temporary in relation to a financial institution and is established to streamline its functioning. The moratorium gives individuals the right to receive not only the invested amount, but also interest on it upon the occurrence of an insured event. Interest compensation occurs separately; they are calculated based on 2/3 of the key rate of the Central Bank of the Russian Federation.
You need to contact the agency involved in payments 2 weeks after the moratorium begins, but no later than 2 weeks before it ends. If the investor has not applied to the DIA for good reasons within the specified time frame, then the money can be issued to him on an individual basis upon presentation of the necessary documents. When the moratorium ends, there are two options:
- the bank's license is revoked and it ceases to exist;
- The sanitary measures taken have a positive effect on the financial condition of the organization, and it continues to operate as before.
Insurance compensation for deposits
According to the law on deposit insurance for an individual participant in legal relations, when applying to the DIA, 100% of the insurance is paid on the deposit. If a private individual had several deposits in a given organization, then the amount of contributions is recalculated in proportion to each deposit. However, you should know that the insurance law provides for a maximum amount of compensation of 1.4 million rubles, and if the amount for all deposits collectively exceeds this figure, then compensation for the difference in contributions is determined in court according to the list of 1st priority creditors.
Compensation for escrow accounts is made in 100% volume, if it does not exceed the amount of 10 million rubles. Payments for this insured event are made by the Agency in a separate manner, after reviewing all documents for opening this account. Money can be received directly at the DIA branch, through agent banks appointed by the fund, or by mail.
Payment amount
The legislation establishing the rules for insurance of individuals separately stipulates the situation in which the owner of the deposit simultaneously had a deposit in a banking organization and took out a loan there, which, by the time the insured event occurred, was not fully repaid. The amount of compensation will be calculated as the difference between the debit and credit account, taking into account all amounts of obligations of the debtor and creditor. Insurance premiums are paid on an individual basis.
Reimbursement currency
Compensation for deposits is made in rubles, therefore, for all deposits in foreign currency, recalculation is carried out according to the Central Bank exchange rate for a given currency at the time of the insured event. If the deposit is placed in foreign currency, then interest on foreign currency deposits is calculated based on data from the Central Bank on average interest rates for this type of bank deposit product.
If a moratorium has been introduced, and you do not want to receive compensation in rubles for a foreign currency deposit, then you can be patient and wait for the end of the sanitary measures. The financial institution will begin operating as before and will satisfy claims on deposits in proportion to deposit agreements. However, in such a situation, there is a possibility that the depositor will not receive the amount paid at all if the bank ceases to exist after the end of the moratorium.
How to receive insurance payments on deposits
In order not to suffer as a result of the bankruptcy of a banking institution and to return funds, the following steps should be taken:
- Check the list of insured funds established by law and find out whether your savings are included in them.
- On the DIA website, make sure that this bank is a participant in the DIA;
- From the media, bank notifications, messages to depositors, find out which agent bank was appointed by the DIA to make payments.
- Choose the most convenient way to receive compensation payment - cash, non-cash transfer, postal transfer.
- Write an application for insurance payment to the agent bank and come there in person with the required documents.
- Within 3 working days, receive the required amount using the specified method.
- If the amount of the deposit exceeds the maximum rate of insurance payment, then to compensate for the difference that insurance does not cover, go to court along with other creditors of the bank.
Documents for submission to the DIA
Compensation is paid by the DIA upon presentation of the following documents:
- Applications from the investor in the prescribed form. If you choose to receive money by mail, the application will have to be certified by a notary.
- Passport or other identification document, about which there is data in the general register of clients of the banking organization.
- When applying not to the investor himself, but to his representative, a power of attorney certified by a notary is required for the right to demand payments.
- If the individual who entered into the agreement on its opening, and the investor’s heir, applies for payment of compensation, then it is required to submit documents evidencing his right to inheritance.
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Sooner or later, everyone has a question about how to store their savings. The most common way to invest funds today is to place them in deposit accounts of commercial banks. This protects savings from the harmful effects of inflation and generates a small income. But many citizens lost confidence in the banking system during the years of economic instability.
What should you do if the bank you are a client of has declared financial difficulties? Should we worry whether there is salvation in such a situation?
Deposit insurance for individuals is a system for protecting the population's funds in the event of bank failure or deprivation of its license. In this way, the state guarantees the financial security of ordinary citizens. Banks also receive their bonuses - insurance of deposits of individuals significantly increases customer confidence.
Insurance purposes
Similar systems exist in many countries around the world. Deposit insurance appeared in Russia in 2003. For what purposes was it introduced?
- Stabilization of the state's financial system.
- Reducing risks associated with banking operations.
- Prevention of worsening financial crises.
- Maintaining public confidence in the banking sector.
Agency
Deposit insurance is regulated by federal law. The Deposit Insurance Agency monitors the activities of banking institutions and protects the interests of depositors. The responsibilities of the corporation include maintaining a register of banks, collecting insurance premiums, recording depositors and paying compensation, maintaining and increasing the insurance fund by investing free funds. The activities of the Deposit Insurance Agency are controlled by the state. Due to the fact that the Agency is the only organization providing deposit insurance, the law clearly regulates its activities.
Where does the corporation get money for reimbursements? Funds are accumulated in the fund's accounts and come from several sources:
- Commercial banks participating in the insurance program pay insurance premiums quarterly.
- The agency actively increases and invests the funds received.
- Part of the financial resources forming the insurance fund was received directly from the state.
Object of insurance
The legislation does not require the conclusion of additional contracts for deposit insurance. All citizen deposits eligible for the government program are considered insured. Thus, the objects of insurance are personal deposits of citizens, salary accounts and personal savings certificates.
There are groups of funds that are not included in compulsory insurance of deposits in banks:
Interest
Insurance of deposits of individuals raises many questions among ordinary citizens.
The most common of these concerns whether the insurance covers interest on deposits, that is, whether the amount of capitalized interest is the object of insurance.
When calculating the insurance compensation, interest is taken into account, which is added to the principal amount of the deposit account; this is reflected in the banking agreement. In this case, only those interests accrued at the time of termination of the bank's activities are taken into account. If the depositor withdrew interest, it will not be taken into account when determining the amount of insurance compensation.
Insurance case
Bank clients do not always know in which case they may need a service such as deposit insurance. The law clearly defines the concept of an insured event. This is a revocation of the license to operate from the bank where the deposit is placed. The Bank of Russia can deprive an institution of its license, for example, due to unsatisfactory financial condition (bankruptcy). The introduction of a moratorium on satisfying the claims of bank creditors is also recognized as an insured event. In this case, the Deposit Insurance Agency becomes obligated to make insurance payments.
Maximum amount of compensation
Deposit insurance is an effective system for increasing the volume of deposit transactions. When the bank is closed, deposits are reimbursed in full with any interest due, but in a total amount not exceeding 1,400,000 rubles. If a depositor has several deposits in a bankrupt bank, then payments on them are summed up, but cannot exceed 1,400,000 rubles.
If insured events occurred in several banks, then the depositor has the right to compensation of deposits in full for each bank (in other words, having 2 million rubles in bank A and 2 million in bank B, we will receive 1.4 million payments for each bank in individually, i.e. 2.8 million in total). Obviously, it is safer to store savings in different institutions.
The amount of payment is calculated based on the end of the day the insured event occurred. The amount of compensation in foreign currency is paid in rubles at the exchange rate on the day the insured event occurred.
Deposit insurance does not always provide full reimbursement. If the deposit amount exceeds the maximum possible insurance payment, then after the bank goes through bankruptcy proceedings, the depositor (as a first-priority creditor) will receive compensation for the rest of the deposit. This may take a long time, from six months. Speed is another advantage of deposit insurance.
Procedure for applying for payment
Why is deposit insurance becoming increasingly widespread in world practice? The payment system for this type of insurance is simple and significantly strengthens confidence in national banks. Traditionally, investors and their heirs have the right to compensation. The right to payment cannot be acquired in any other way.
The depositor can apply for payment from the date of the insured event. The deadline is the day of completion of bankruptcy proceedings or the end of the moratorium.
The procedure for applying for payment is strictly regulated by law. Insurance of deposits of individuals is terminated if the depositor misses the application deadline. In this case, he may apply to the Agency with a request to extend this period. Reinstatement of the term is possible if:
- the application was prevented by force majeure or an emergency situation;
- the investor served in military service;
- the absence was due to a serious health condition or the period of inheritance.
When applying you must provide:
- Application written according to the sample provided by the Agency.
- Passport or other identification document.
- Documents confirming the right to inheritance for heirs and a power of attorney for representatives of the investor.
Payment procedure
Payments of insurance compensation are made by the Agency, as required by law. Insurance of deposits of individuals is entirely under its jurisdiction. After the occurrence of an insured event, the Agency informs depositors about the place, time and procedure for accepting applications for insurance compensation. After the depositor provides the necessary documents, payment is made within three days, but not earlier than 2 weeks from the date of the insured event.
If the depositor does not agree with the amount of the payment, the compensation can be appealed. After providing additional documents, the Agency will recalculate within 10 calendar days. After receiving the insurance compensation, the depositor receives a certificate of the amounts paid and sends it to the bank. Payments are made in rubles, in cash or to a bank account.
So now you know how deposit insurance works. The system of banking institutions is stabilized when using this financial instrument, and depositors' savings are under state protection.
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Compulsory deposit insurance system (CDI)– a special state program implemented in accordance with Federal Law dated December 23, 2003 No. 177-FZ “On insurance of deposits in banks of the Russian Federation.”
The main objectives of the CER are:
- protection of the rights and legitimate interests of depositors of banks of the Russian Federation;
- strengthening confidence in the banking system of the Russian Federation and stimulating the attraction of funds into the banking system of the Russian Federation.
The State Corporation “Deposit Insurance Agency” (hereinafter referred to as the Agency) was created to ensure the functioning of the DIS and, first of all, to ensure the payment of compensation for deposits in the participating banks of the DIS in the event of an insured event.
Operation of the compulsory deposit insurance system
Participation in the SSV is mandatory for all banks that have the right to work with deposits of individuals. Deposits are considered insured from the day the bank is included in the register of banks participating in the CER. The current list of banks participating in the CER is published on the Agency’s official website on the Internet information and telecommunications network
Currently, depositors of 746 (data as of May 20, 2019) banks participating in the deposit insurance system are protected by CERs, including:
- operating banks licensed to work with individuals - 386;
- existing credit institutions that previously accepted deposits but lost the right to attract funds from individuals -6;
- banks in the process of liquidation - 354.
The funds of depositors who have entered into a bank deposit agreement or a bank account agreement with the bank, including deposits certified by savings certificates, are subject to insurance.
In accordance with federal law, depositors include:
- individuals - citizens of the Russian Federation, foreign citizen, stateless person;
- individuals - individual entrepreneurs (IP);
- legal entities classified in accordance with legislation of the Russian Federation to small enterprises, information about which is contained in the unified register of small and medium-sized enterprises (SMEs) maintained by the Federal Tax Service of Russia.
The following funds are not insured:
- placed in bank accounts (deposits) of lawyers, notaries and other persons, if such bank accounts (deposits) are opened in connection with professional activities;
- placed in bank deposits, the deposit of which is certified by certificates of deposit;
- transferred to banks for trust management;
- placed on deposit in branches of banks of the Russian Federation located outside the territory of the Russian Federation;
- being electronic money;
- placed on nominal accounts, with the exception of separate nominal accounts that are opened by guardians or trustees for the benefit of wards;
- placed on collateral accounts;
- placed in subordinated deposits;
- placed by legal entities or in their favor, with the exception of funds placed by small enterprises or in their favor.
An insured event is one of the following events:
1) revocation (cancellation) by the Bank of Russia of the bank’s license to carry out banking operations; 2) introduction by the Bank of Russia in accordance with legislation The Russian Federation has a moratorium on satisfying the claims of bank creditors. An insured event is considered to have occurred from the date of revocation (cancellation) of the bank’s license from the Bank of Russia or from the date of the introduction of a moratorium on satisfying the claims of the bank’s creditors.
Informing depositors about the occurrence of an insured event by the Agency
Information about the occurrence of an insured event in relation to a bank is published on the official website of the Bank of Russia and on the official website of the Agency on the Internet, as well as in the media. The Agency, within 5 working days from the date of receipt from the bank in respect of which the insured event occurred, publishes the register of the bank’s obligations to depositors on the Agency’s official website on the Internet and sends it to this bank, as well as to the Bank of Russia for posting on its official website on the Internet information and telecommunications network and in the periodical printed publication at the location of this bank, a message containing information about the place, time, form and procedure for accepting applications from depositors for payment of compensation for deposits. In addition, within 1 month from the date of receipt from the bank of the register of the bank’s obligations to depositors, the Agency also sends a corresponding message to each depositor of this bank, whose data is contained in the register and to whom, as of the date of sending this message, the bank has obligations on deposits.
The investor can obtain all this information by calling the Agency’s hotline (8-800-200-08-05) (calls within Russia are free).
The depositor can also subscribe to news about the bank he is interested in on the Agency’s official website on the Internet. In this case, the depositor is automatically sent news posted on the Agency’s website in the “Deposit Insurance/Insured Events” section for this bank to the email address he specified when subscribing.
Amount of insurance compensation
The amount of compensation payable on deposits is determined based on the amount of the bank's obligations to the depositor insured in accordance with federal law.
Compensation for deposits is paid by the Agency to a bank depositor in the amount of 100 percent of the amount of all his deposits, including interest, but not more than 1.4 million rubles. In total.
For escrow accounts opened for settlements under a real estate purchase and sale transaction and for settlements under an agreement for participation in shared construction, the maximum amount of insurance compensation is 10 million rubles. Reimbursement for escrow accounts is calculated and paid separately from reimbursement for other deposits.
Interest is calculated on the date of the insured event based on the terms of each specific bank deposit (account) agreement.
For bank deposits denominated in foreign currency, the amount of compensation is calculated in the currency of the Russian Federation at the rate established by the Bank of Russia on the day the insured event occurred.
The amounts of the bank's counterclaims to the depositor (for example, for a loan taken by the depositor from the same bank) are deducted when calculating the compensation paid by the Agency from the amount of deposits. At the same time, subtracting the amount of counterclaims does not mean their automatic repayment (full or partial). The depositor's obligations to the bank remain the same and must be fulfilled properly in accordance with the terms of the agreements concluded with the bank.
If the depositor repays the debt to the bank in full or in part, the depositor has the right to receive insurance compensation in the appropriate amount. At the same time, he can send a free-form application to the bank to make appropriate changes to the register of the bank’s obligations to depositors.
You can obtain information about all available methods of loan repayment and pay a loan to a bank whose license to carry out banking operations has been revoked on the Agency’s payment portal: www.payasv.ru.
Payment of insurance compensation
Acceptance of applications from depositors for payment of compensation for deposits and payment of compensation for deposits begin, as a rule, 10–14 calendar days after the occurrence of the insured event. The Agency needs the specified time to receive information from the bank about deposits (register of obligations), verify it and organize payments.
You can apply for payment during the entire period of bank liquidation. On average, the bank liquidation procedure takes about 3 years.
Insurance compensation for depositors who did not have time to apply for payment of insurance compensation is carried out by the Agency upon applications in exceptional cases, for example, in case of serious illness, long-term business trip abroad, or military service.
In order to ensure the fastest possible payment of compensation for deposits, the acceptance from depositors of applications for payment of compensation for deposits (the application form is posted on the Agency's official website on the Internet) and other necessary documents, as well as the payment of compensation itself, can be carried out by the Agency through agent banks, acting on his behalf and at his expense.
The selection of agent banks is carried out on a competitive basis. The announcement of the results of the selection of agent banks is posted on the Agency’s official website on the Internet no later than 7 days after the occurrence of the insured event.
Payment of compensation for deposits is made within 3 business days from the date the depositor submits to the agent bank an application for payment of compensation for deposits and an identification document. Payment of compensation can be made either in cash or by transferring funds to a bank account opened with the bank specified by the depositor. Payment of compensation for deposits of individual entrepreneurs is carried out only to an account opened for business activities. Payment of compensation for deposits of a small enterprise is made to the bank account of the small enterprise opened with the bank.
The start dates for payments and the name of the agent bank, including the addresses of its offices where insurance compensation can be received, are published on the Agency’s official website on the Internet and in the media.
If the court makes a decision to liquidate the bank, settlements with depositors in the amount exceeding the payment made by the Agency are carried out during the bankruptcy proceedings or forced liquidation carried out by decision of the arbitration court. Such claims of depositors are satisfied as part of the claims of first-priority creditors.
Financial Basics of CERs
To make insurance payments, federal law provides for the formation of a compulsory deposit insurance fund (hereinafter referred to as the Fund). The Fund is formed from insurance premiums of banks - participants of the CER, income from investing temporarily free funds of the Fund, and the property contribution of the Russian Federation.
Insurance premiums are paid by banks participating in the CER on a quarterly basis. The rate of insurance premiums is established by the Agency's Board of Directors. Since the third quarter of 2015, a mechanism for paying contributions at differentiated rates has been introduced. The application of increased rates depends on the maximum interest rates of banks on the deposits they attract and the Bank of Russia’s assessment of their financial situation, including the supervisory response measures introduced by the Bank of Russia.
The procedure and mechanisms for control over the investment of temporarily available funds of the Fund are established by the Government of the Russian Federation. The list of assets permitted for investment is strictly regulated. Data on income from investing the Fund's funds are published in the Agency's annual reports.
The Fund's funds spent on payments are fully or partially returned to the Fund upon satisfaction of the Agency's claims against liquidated banks transferred to it as a result of the payment of insurance compensation to their depositors.
The Fund's funds have a strict purpose and can only be spent on paying compensation for deposits. In order to control the intended expenditure, the Fund’s funds are accounted for in a specially opened Agency account with the Bank of Russia.
The financial stability of the CER is ensured by the Agency's property, and, if necessary, funds from the federal budget, as well as loans provided by the Bank of Russia.
Deposit Insurance Law
Glossary of basic terms
Deposit Insurance Agency (DIA)– a non-profit organization created by the state to provide work Deposit insurance systems (DIS) and protection of interests investors. The DIA operates on the basis of the Federal Law of December 23, 2003 No. 177-FZ “On insurance of deposits in banks of the Russian Federation” (Federal Law No. 177-FZ). The organizational and legal form of DIA is a state corporation. It is the DIA that organizes the payment of compensation to individuals and legal entities for deposits, insurance of which is carried out in accordance with Federal Law No. 177-FZ, from funds compulsory deposit insurance fund.
The bank is a participant of the SSV– a credit institution that has the right to attract funds from the public in deposits. The bank must pay insurance premiums V Mandatory Deposit Insurance Fund; inform depositors about their participation in the cash reserves, about the procedure and amount of receiving compensation for deposits; keep records of the bank's obligations to depositors.
Contribution– funds placed by investors in banks - participants of the CER on the territory of the Russian Federation on the basis of a bank deposit agreement or a bank account agreement. The concept of “deposit” includes capitalized (accrued) interest on the deposit amount. Deposits in both rubles and foreign currency are subject to insurance protection. The exclusion of certain types of monetary obligations from insurance is established by law. In particular, the following are not subject to insurance: funds placed in bank accounts (deposits) of lawyers, notaries and other persons opened for professional activities; deposits, the making of which is certified by a certificate of deposit; funds transferred to banks for trust management; deposits in branches of Russian banks located abroad; electronic money; funds placed on nominal accounts, with the exception of nominal accounts that are opened for guardians or trustees and the beneficiaries of which are wards, collateral accounts and escrow accounts, unless otherwise established Federal Law No. 177-FZ; funds placed in subordinated deposits; funds placed by legal entities or in their favor, with the exception of funds placed by small enterprises or in their favor. In addition, deposits that are not denominated in monetary units (for example, in grams of precious metals) are not subject to insurance.
Investor– a citizen of the Russian Federation, a foreign citizen, a stateless person, including those engaged in entrepreneurial activities, or a legal entity classified in accordance with the legislation of the Russian Federation as a small enterprise, information about which is contained in the unified register of small and medium-sized businesses, maintained by in accordance with the Federal Law of July 24, 2007 No. 209 - Federal Law “On the Development of Small and Medium-Sized Enterprises in the Russian Federation”, having concluded a banking agreement with the bank contribution or bank account agreement. The investor is entitled by law to receive insurance compensation in the bank in respect of which the insurance case. In order to exercise this right, to an individual depositor It is enough to submit a corresponding application and a document proving his identity. Counterclaims– monetary obligations investor to the bank (balance of debt on a loan, overdraft, etc.). Counterclaims reduce the amount of obligations upon settlement insurance compensation. Payment of insurance compensation does not automatically terminate (offset) counterclaims.
Register of banks – participants of the CER– list of banks, deposits in which they are insured in accordance with Federal Law No. 177-FZ. The register is maintained by the DIA. It is available for review on the official website of the DIA on the Internet. If the bank has a insurance case, then it is subject to exclusion from the register after the DIA completes bankruptcy (liquidation) procedures of the bank.
Register of bank liabilities– a list of the bank’s obligations to depositors and counterclaims bank to to investors, on the basis of which payment is made insurance compensation. Contains information: about investors; O contributions and about counterclaims bank to to the investor.
Deposit Insurance System (DIS)– a special state program implemented in accordance with the Federal Law “On Insurance of Deposits in Banks of the Russian Federation”. Its main task is to protect the population’s savings placed in Russian banks. SSV allows to investors upon the occurrence of an insured event, receive compensation for deposits within the maximum amount of insurance compensation established by law. The deposit insurance mechanism is as simple as possible and does not require any preliminary actions from the depositor: deposits and accounts of individuals and legal entities in the participating bank of the CER, subject to insurance in accordance with Federal Law No. 177-FZ, are insured “automatically” from the moment the funds are placed in the bank on the basis of a bank deposit/account agreement.
Insurance compensation (reimbursement for deposit/deposits)– amount of money to be paid to the investor upon arrival insured event. It is established based on the amount of the bank’s obligations to investor minus counterclaims jar.
Compensation for deposits is paid in the amount of 100% of the amount of all deposits in the bank, but not more than the maximum amount of insurance compensation established by law. The deposit amount includes both the amount of funds contributed by the depositor and capitalized (accrued) interest on the deposit. Insurance compensation is paid in rubles within three working days after the depositor (his representative, heir, legal successor) submits an application for payment and the necessary documents (identity document, power of attorney, document on the right of inheritance), but not earlier than 14 working days days from the date of occurrence of the insured event, unless an earlier period is determined by a decision of the DIA Board. Deposits in foreign currency are converted into rubles at the Bank of Russia exchange rate on the date of insured event.
Maximum amount of insurance compensation– a legal limit on the total amount of compensation for deposits paid to one depositor in one bank. Starting from December 30, 2014, the maximum amount of insurance compensation is 1.4 million rubles. In previous periods of operation, the CIC was set equal to 100,000, 190,000, 400,000, 700,000 rubles, depending on the date of occurrence of the insured event. For certain types of accounts ( escrow accounts opened for settlements under a real estate purchase and sale transaction, and escrow accounts opened for settlements under an agreement for participation in shared construction) the maximum amount of insurance compensation is 10 million rubles.
Insurance case– revocation (cancellation) from bank - participant of the CER licenses of the Bank of Russia to carry out banking operations or the introduction by the Bank of Russia of a moratorium on satisfying the claims of the bank’s creditors.
Bank insurance premiums– quarterly contributions from participating banks to the compulsory deposit insurance fund. From July 1, 2015, differentiated insurance premium rates were introduced: basic, additional and increased additional.
Mandatory Deposit Insurance Fund – financial basis of the CER. The fund consists of the property contribution of the Russian Federation, insurance premiums of banks participating in the DIC, income from the placement of fund funds in government and corporate securities, cash and property received from satisfying the rights of claim of the DIA, acquired as a result of paying them compensation for deposits. The Fund's funds are used for payments insurance compensation for deposits and other purposes established by federal laws.
A deposit is the most convenient way to save. Making a deposit today is a fairly simple process because you can make a deposit without leaving your home. However, in crisis conditions, when many banks are deprived of their license, the question arises: can you trust your money to financial institutions? The state took care of this by offering deposit insurance in 2019.
The main point
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The deposit insurance system is subject to Federal Law No. 177-FZ “On insurance of deposits of individuals in banks of the Russian Federation”. The main goal of this system is to protect citizens’ funds placed in Russian bank accounts.
In general, protecting citizens’ funds is a priority task of any state. The insurance system operates in the USA, Japan, Ukraine and some other countries that are members of the European Community.
The deposit protection system works according to the following principle. If a financial institution ceases to exist or becomes a bank, its license is revoked and funds from the accounts are paid to depositors. This procedure does not require prior agreement, since it is carried out by force of law.
The Deposit Insurance Association of the Russian Federation takes on all the bank's debts, paying depositors money. Next, the agency independently sorts out the relationship with the credit institution for debt repayment.
Deposit insurance is carried out within the amount 1400000 rubles. Moreover, if the depositor keeps funds in the bank in different accounts, he still will not be able to receive funds exceeding the specified amount. But if accounts are opened in different banks, then each account guarantees a refund of the amount up to 1,400,000 rubles.
Basic provisions
Mechanism
The process of deposit insurance is simple and has its own characteristics. First of all, money is deposited and an agreement is concluded with the bank.
The deposit automatically falls under the insurance system if the bank has the appropriate license. In this case, a specialized insurance contract is not required.
For participation in the insurance system, the financial institution pays the DIA monthly 1% from the amount of the deposit portfolio. In other words, the bank pays for deposit insurance, not the client.
Thus, investors are protected by law. Customers using debit cards are also protected.
What is not taken into account
All client funds, including those on debit cards, are covered by insurance.
The exceptions are:
- funds from the accounts of individual entrepreneurs, notaries and lawyers;
- funds in trust management;
- deposits in precious metals;
- electronic money;
- bearer deposits.
What is covered?
Funds located in client debit accounts are protected by the deposit insurance system. These are deposits and plastic cards. And if almost every depositor knows about the deposit insurance system, only a few know that the funds in plastic card accounts are insured.
Return of deposits is carried out if the bank’s license is revoked or if a moratorium on activities is imposed by the Central Bank of the Russian Federation. In these cases, the bank has the legal right to pay the funds, no earlier than through 10 days.
The maximum payment period is 14 days. Funds are transferred to depositors through another bank or via Russian Post.
Lists of participating banks
Deposit insurance is provided by the DIA. The organization maintains a register of program participants and an insurance fund, which is created by participating banks through monthly insurance contributions. To date, the list includes 840 participants. Full information can be found on the DIA website.
Below we present a list of participating banks of the Russian Federation, which are the most reliable in Russia, since they have been included in the register of insured for a very long time:
- Stella Bank;
- Vega Bank;
- Post Bank;
- Rus;
- Gazbank;
- Zarechye;
- Arksbank;
- Rinvestbank;
- Eurocitybank.
When making a deposit, be sure to look at the current information on, since the list is very flexible and the number of banks decreases every year.
It is also worth checking the information at the bank office: upon request, the specialist must provide a license for a participant in the deposit insurance system
Controversial issues of deposit insurance
Refund
Despite the fact that the insurance system operates more 12 years, when paying insurance compensation, controversial issues arise. Any investor should know their rights.
According to modern legislation, the DIA pays 100% from the deposit amount, not exceeding 1,400,000 rubles.
If the deposit was opened in another currency, then the funds are converted at the rate on the day of the insured event. It is worth noting that the cost of compensation is gradually increasing and until 2019 it was 700 thousand.
Thus, the state offers fairly large compensation for the occurrence of an insured event.
It is worth noting that if the investor also has a loan, then the payment will be made minus the debt. This procedure occurs automatically and the client will receive only the difference in his hands.
The situation with legal entities
Deposits in banks can be placed by both individuals and legal entities. However, state compulsory deposit insurance is not expected in this case.
Today, legal entities can carry out the procedure for insuring their deposit on a voluntary basis, that is, by paying insurance premiums on their own.
The insurer in this case is not the DIA, but any insurance company. Today, the procedure for insuring deposits of legal entities is in its infancy and has many nuances and shortcomings. Therefore, in the case of protecting such a deposit, you should approach the choice of an insurance company very carefully.
How to act
To receive a deposit after the bank’s license has been revoked, you must contact the bank itself. After the occurrence of an insured event, DIA within 1 week publishes in the “Bulletin of the Bank of Russia” a register of obligations to depositors.
Such a register also appears on the Agency’s website. During 1 month The DIA sends a notification to each depositor about payments.
After receiving the notification, the depositor is required to provide the DIA with an application and passport. After this, the DIA provides a register indicating the amount of insurance compensation and within 3 days transfers funds to the investor. But only after two weeks had passed since the bank’s license was revoked.
After receiving funds, depositors sign a certificate, a copy of which is sent to the bank.
Possible problems
When receiving insurance compensation, a number of problems may arise, the solution of which requires certain knowledge from the investor:
| The amount paid is less than stated | If the amount of accrued remuneration does not suit the client, he has the right to contact the DIA with additional documents stating that the amount does not correspond to the real one. In this case, the claim is sent to the bank, and after that changes are made to the Agency’s register. |
| Violation of application deadlines | An application for receiving money must be submitted within the deadlines established by law and no later than the end of the liquidation of the bank. If the client did not manage to do this on time, then he can count on payment of funds only if the reason for not submitting the application is valid (serious illness, business trips, etc.). |
| Availability of a loan from this bank | The depositor will receive only the funds remaining after the loan amount along with interest is deducted from the deposit. |
| The deposit amount is greater than the insurance compensation | If it turns out that the amount in the account is more than the insurance amount, then the depositor can count on them after bankruptcy proceedings (when the bank’s property is sold). In this case, it often turns out that the property is not valuable enough and there are not enough funds to pay all the debts. Therefore, depositors' demands will be satisfied on a first-come, first-served basis. |
Thus, if problems arise, you must immediately contact the DIA. Specialists try to help any investor as much as possible by returning the invested funds.
FAQ
Despite the fact that the insurance system has been in effect since 2004, investors have many questions about protecting their savings.
Let's present the most popular of them:
| Is accrued interest on the deposit insured? | The deposit consists of two sub-accounts. One of them takes into account interest, and the other - the amount of the principal deposit. If the deposit involves capitalization, that is, adding accrued interest to the amount of the main deposit, then the interest will be insured. If the interest is in a separate account, then only the amount of the main deposit is subject to reimbursement. |
| How much insurance compensation can be received from one bank? |
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| If deposits are placed by a husband and wife in the same bank, then what kind of compensation is due? | Since the investors are different people, each individual will receive 100% deposit amount not exceeding 1400000 rubles. |
| If a depositor has several accounts in one bank, can he count on receiving 100% of the amount for each as part of a possible insurance compensation? | The amount of compensation does not depend on the number of accounts in one bank. If the total cost of desochites is higher than 1400000 rubles, the investor has no right to count on an amount greater than this. In order to fully insure your savings, it is better to place money in different banks. |
| The bank had financial difficulties and I decided to withdraw my deposit. Employees refuse payments in full and are advised to write an application for payment of the contribution in installments. Should I agree? |
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