FAQ

Members of the Deposit Guarantee Scheme of the Republic of Lithuania are banks and credit unions:

1. banks established in the Republic of Lithuania, including their branches established in the Republic of Lithuania and in other Member States;
2. branches of third-country banks established in the Republic of Lithuania, if deposits held with them are not guaranteed or otherwise protected under the legislation of the third country under whose jurisdiction the bank that established the branch falls;
3. branches of third-country banks established in the Republic of Lithuania where deposits are guaranteed or otherwise protected under third-country legislation, but the conditions of such protection are less favourable than those laid down in the Law of the Republic of Lithuania on Insurance of Deposits and Liabilities to Investors;
4. credit unions and central credit unions established in the Republic of Lithuania.

THE LIST OF MEMBERS OF THE DEPOSIT GUARANTEE SCHEME IS AVAILABLE [HERE](http://www.iidraudimas.lt/en/deposit-insurance-0/list-of-members).

No. Deposits held at a branch established in the Republic of Lithuania by a bank authorised in another Member State are protected by the deposit guarantee scheme of the bank’s home Member State. A branch of a third-country bank may be a member of the Lithuanian Deposit Guarantee Scheme in the cases provided for by the Law.

The scope of deposit guarantee comprises eligible deposits belonging to depositors and held with credit institutions, irrespective of their currency. A deposit is a credit balance which results from funds left in an account opened with a credit institution under a bank deposit agreement or a bank account agreement, or from temporary situations arising when a credit institution provides financial services, and which the credit institution is required to repay under the applicable legal or contractual conditions.

A credit balance is not considered a deposit where:

1. its existence cannot be proven by financial instruments;
2. its principal is not repayable at par;
3. its principal is repayable at par only under a particular guarantee or agreement provided by the credit institution or a third party.

No repayment under the deposit guarantee scheme is made for the following deposits or in the following cases:

1. deposits made by other credit institutions on their own behalf and for their own account;
2. the credit institution’s own funds;
3. deposits arising out of transactions in connection with which there has been a criminal conviction for money laundering;
4. deposits by financial institutions;
5. deposits by management companies;
6. deposits by investment firms;
7. deposits the holders of which have not been identified (deposits held in anonymous and coded accounts);
8. deposits by insurance undertakings and reinsurance undertakings, including insurance undertakings and reinsurance undertakings established in other Member States and in third countries;
9. deposits by collective investment undertakings;
10. deposits by pension funds;
11. deposits by State and municipal institutions and bodies, as defined in the Law of the Republic of Lithuania on the Civil Service, except for funds belonging to other persons and held in deposit accounts of such institutions and bodies;
12. deposits by the Bank of Lithuania;
13. debt securities issued by the credit institution itself and liabilities arising out of its own acceptances and promissory notes;
14. electronic money and funds received from electronic money holders in exchange for electronic money;
15. deposits held in an account on which no transaction relating to the deposit has taken place during the last 24 months before the date on which deposits became unavailable and where the amount held in the account is less than EUR 10;
16. where a depositor or another person entitled to repayment under the deposit guarantee scheme has been convicted in criminal proceedings concerning money laundering and/or terrorist financing in relation to the legality of the acquisition of the funds held as deposits.

A depositor becomes entitled to repayment from the date on which the deposits become unavailable.

An event of deposit unavailability occurs when bankruptcy proceedings are opened in respect of a member of the deposit guarantee scheme or the supervisory authority determines that the member of the deposit guarantee scheme, for reasons directly related to its financial circumstances, is unable to meet a justified claim for repayment of a deposit and has no current prospect of being able to do so.

When determining the amount repayable under the deposit guarantee scheme, the depositor’s liabilities to the credit institution are not taken into account. This means that loans, leasing liabilities or other obligations do not reduce the repayable amount.

**Example**
A person held a deposit of EUR 60,000 with one credit institution and had a loan of EUR 50,000. If the deposits became unavailable, the person would receive a repayment of EUR 60,000 under the deposit guarantee scheme.

When deposits become unavailable, the Public Institution “Deposit and Investment Insurance” (hereinafter – DII) organises repayment under the deposit guarantee scheme in accordance with the procedure laid down by law.

On behalf of the Deposit Guarantee Fund, repayments may be made through:

* the member of the deposit guarantee scheme whose deposits have become unavailable;
* a payment service provider selected by DII;
* DII.

DII informs depositors publicly about the repayment procedure, deadlines and other conditions through its official website, the media and social media accounts.

The maximum amount repayable to one depositor under the deposit guarantee scheme is EUR 100,000. When determining the repayable amount, all eligible deposits held with the same credit institution, irrespective of currency, are aggregated. The repayable amount also includes interest accrued on eligible deposits up to the date on which deposits become unavailable but not yet credited to the depositor’s account.

**Example 1**
If a depositor has the following accounts with the same credit institution:

* a savings account containing EUR 90,000;
* a current account containing EUR 20,000,

the total amount of deposits is EUR 110,000, therefore the depositor will receive the maximum repayable amount of EUR 100,000 under the deposit guarantee scheme.

**Example 2**
If, on the date on which deposits become unavailable, the amount of a depositor’s deposit together with accrued interest is EUR 100,200, the depositor will receive the maximum repayable amount of EUR 100,000 under the deposit guarantee scheme.

In certain cases provided for by the Law, temporary high balances may be protected above EUR 100,000. This applies where funds were credited to the depositor’s account no earlier than six months before the date on which deposits became unavailable on the following grounds:

* **up to EUR 300,000** – funds received from the sale or other transfer of residential property owned by the depositor (including the land attributed to that property);
* **up to EUR 200,000** – inherited funds received under a will or by operation of law;
* **up to EUR 200,000** – funds received as a beneficiary under a life insurance contract (or a contract equivalent in substance) upon the death of the insured person;
* **up to EUR 200,000** – funds received as compensation or another payment equivalent in substance due to the death of another person while performing work or official duties;
* **up to EUR 200,000** – funds received as a payment or compensation for damage caused by violent crimes or for damage resulting from the actions of pre-trial investigation officers, a prosecutor, a judge or a court, in the cases provided for by law.

The right to repayment under the deposit guarantee scheme above EUR 100,000 applies to natural persons. To receive the part of the repayment exceeding EUR 100,000, the depositor must, within one month from the date on which deposits become unavailable, submit to the member of the deposit guarantee scheme an application and documents evidencing entitlement to such repayment. If this deadline is missed, the right to the amount exceeding EUR 100,000 is lost, unless the court restores the deadline for important reasons. The total repayable amount may not exceed the balance of the deposit on the date on which deposits became unavailable.

When deposits become unavailable, the repayable amount (up to EUR 100,000) is made available within seven working days. In the cases provided for by the Law, repayment may be deferred, for example where information is insufficient, there is a legal dispute, the right to dispose of the deposit is restricted, or the persons entitled to funds held in a joint account or deposit account need to be identified.

The right to receive repayment remains valid for five years from the date on which the deposits become unavailable.

A depositor’s right to repayment under the deposit guarantee scheme remains valid for five years from the date on which the deposits become unavailable. After this period expires, repayment is no longer made. Disputes concerning entitlement to repayment under the deposit guarantee scheme are decided by courts of general jurisdiction in accordance with the procedure laid down by law.

When deposits become unavailable, the depositor should follow the information published by DII on the repayment procedure, deadlines and other conditions. The information is published on DII’s website, in the media and on social media accounts. As a rule, the depositor does not need to submit an application for repayment, except where payment is requested of the part of the repayable amount above EUR 100,000 provided for by the Law.

The Law of the Republic of Lithuania on Insurance of Deposits and Liabilities to Investors does not provide for a separate exclusion under which deposit guarantee protection would cease to apply during war or a state of war.

**1) If the account is opened in the name of the minor**

If the deposit agreement or bank account agreement is concluded in the name of the minor, the minor is considered the depositor and the parents or guardians act as the minor’s legal representatives. Therefore, if deposits become unavailable, the repayable amount is determined in the name of the minor. The repayment due to the minor is administered, in accordance with the procedure laid down by law, by the minor’s parents (adoptive parents) or guardians.

**2) If the account is opened in the name of the parents or guardians**

If the deposit agreement or bank account agreement is concluded in the name of the minor’s parents (adoptive parents) or guardians and the credit institution has not been informed that the funds specified in the agreement (or a share of those funds) belong to the child, the depositor is considered to be the person who opened the account with the credit institution, i.e. the minor’s parents (adoptive parents) and/or guardians. Therefore, if deposits become unavailable, the repayable amount is determined for the person who opened the account (who is also considered the account holder) – the minor’s parents (adoptive parents) or guardians – and deposit guarantee protection of up to EUR 100,000 applies to them.

Conversely, if the deposit agreement or bank account agreement is concluded in the name of the minor’s parents (adoptive parents) or guardians and, when opening the account, the parents (adoptive parents) and/or guardians informed the credit institution that the funds held in the account (or a share of those funds) belong to the child, the minor is considered the depositor in respect of the funds (or the share thereof) belonging to the minor and held in the account. Therefore, if deposits become unavailable, the repayment due to the child (or the relevant part thereof) is determined separately, subject to the coverage level of EUR 100,000 per person entitled to the funds held in the account, provided that the child and the share of the funds belonging to the child have been identified on the date on which deposits become unavailable. The repayment due to the minor is paid to the person in whose name the account holding the funds (or a share thereof) belonging to the minor was opened – the minor’s parents (adoptive parents) or guardians.

**3) If the account is a joint account of the minor and the minor’s parents or guardians**

If the deposit agreement or bank account agreement is a joint agreement of the minor and the minor’s parents or guardians, the repayable amount for each account holder is determined according to the share of the deposit belonging to that account holder, in equal shares unless otherwise provided in the agreement giving rise to the claims or in a court decision. The repayment to each depositor – the minor and the minor’s parents (adoptive parents) or guardians – may not exceed EUR 100,000.

**Example**
Parents (A and B) and their 15-year-old child (C) have a joint account containing EUR 500,000. Under the agreement:

* A is entitled to EUR 400,000;
* B is entitled to EUR 50,000;
* C is entitled to EUR 50,000.

The repayable amount would be determined separately for each depositor:

* A would receive the maximum repayment of EUR 100,000 under the deposit guarantee scheme;
* B would receive a repayment of EUR 50,000 under the deposit guarantee scheme;
* C would receive a repayment of EUR 50,000 under the deposit guarantee scheme.

If a deposit is held in a joint account, the repayable amount is determined separately for each account holder. Unless otherwise provided in the agreements giving rise to the claims or in a court decision, the funds held in the joint account are deemed to belong to all account holders in equal shares. The repayable amount for each account holder is determined according to that account holder’s share of the deposit, but may not exceed EUR 100,000.

**Example**
A husband and wife have a joint account containing EUR 140,000 on the date on which the deposits become unavailable. Unless otherwise provided in the agreement, each is deemed to be entitled to EUR 70,000. The wife also has a personal account with the same credit institution containing EUR 60,000. The husband’s repayable amount would be EUR 70,000 (EUR 140,000 / 2 = EUR 70,000). The wife’s share of the joint account and her personal deposit would total EUR 130,000 (EUR 140,000 / 2 + EUR 60,000 = EUR 130,000), therefore she would receive the maximum repayable amount of EUR 100,000.

If credit institutions A and B merged into a single credit institution C, the repayable amount is determined on the basis of all deposits that the depositor held with credit institution C on the date on which the deposits became unavailable. Since, following the merger, the depositor’s aggregate deposits amount to EUR 150,000 (EUR 90,000 + EUR 60,000), the depositor would receive the maximum repayment of EUR 100,000 under the deposit guarantee scheme.