Updated last 26.03.2021
What is an insured deposit?
In the practice, bank deposits are one of the ways for the business to save free cash and earn interest that banks pay for specific terms of the deposit. This is one of the low risk ways to invest as it is regulated by the Bank Deposit Insurance Act and through the Bank Deposit Insurance Fund.
The goal of the Fund is to contribute to the stability and trust in the financial system in the Republic of Bulgaria (art. 3, para 1 of the Deposit Insurance Act) and the funds collected therein are accumulated mainly based on the annual premiums paid to the Fund by the banks.
|Important to know|
According to the Deposit Insurance Act the Fund guarantees full payment of deposits of one person (whether natural person or legal entity) in one bank regardless of their number, amount and the currency thereof as long as it does not exceed BGN 196 000. In some of the hypotheses expressly stipulated in article 10, paragraph 1 of the Law on Bank Deposit Guarantee, for a term of 3 months are guaranteed the deposits of up to BGN 250 000.
When does the Fund pay the deposited amounts to the person?
In accordance with art. 20, para 1 of the Deposit Insurance Act the Fund pays the liabilities of the respective bank to its depositors within the insured amounts, if there is:
- Decision of the Bulgarian National Bank (BNB) to revoke the license for banking activities;
- Decision of the BNB establishing that the deposits are not available and that in its opinion the bank seems unable in its opinion – for reasons directly related to its financial position – to pay the deposits and that the bank will not be in a position to do so in a short-term perspective;
Act of a judicial body, with which pursuant to reasons, directly related to the bank’s financial standing, the claiming of the depositors’ receivables against the bank is prevented.
|Important to know|
Information as to all decisions of the BNB may be obtained from the official website in the section Press Release
What are the deadlines in which you can get access to your deposits?
The Bank Deposit Insurance Fund ensures access of the depositors to the amounts subject to payment on insured deposits within seven working days after the decision of the BNB for the revocation of the banking activity license of the respective bank, respectively of the decision of the Bulgarian National Bank for establishment that the deposits are unavailable and that as per the bank’s judgment as of that moment the bank seems unable – due to reasons, directly related to its financial condition, to pay back the deposits and that it will not be able to do so in a short-term perspective or of the act of a court judicial body, which pursuant to reasons, directly related to the bank’s financial standing, prevents the claiming of the depositors’ receivables against the bank.
You can receive the insured amount of your deposit within the overall five-year statute of limitation as of the initial date of payment.
|For more information |
Additional information on the frequently asked questions related to the insured deposits is available on the official website of the Bank Deposit Insurance Fund.