EuroCalc

What is Deposit Insurance?

Deposit insurance is a government or industry-backed guarantee that reimburses bank customers up to a defined limit (CHF 100,000 in Switzerland, EUR 100,000 in the EU) if their bank fails, designed to prevent bank runs and stabilise the financial system.

Switzerland's scheme is run by esisuisse and protects deposits, medium-term notes held in the customer's name with the issuing bank, and pension assets in Pillars 2 and 3a — the latter with a separate CHF 100,000 ceiling per pension foundation. The combined private-deposit protection inside the bank is capped at CHF 100,000 per customer per institution. In the EU, the Deposit Guarantee Schemes Directive harmonises a EUR 100,000 ceiling across all member states.

Deposit insurance is automatic — you do not register or pay separately, the cost is built into the bank's regulatory levies. Coverage applies per customer per bank, not per account. Splitting CHF 300,000 across three different banks gives you full coverage; splitting it across three accounts at the same bank does not.

In a bank failure, depositors typically receive their insured funds within seven business days in the EU and within roughly 20 working days in Switzerland. Uninsured amounts above the ceiling are part of the bankruptcy estate and may be partially recovered years later. For balances above the ceiling, money-market funds investing in short-term government bills can be a safer alternative because they bypass bank-balance-sheet risk.

Example

A Zurich resident holds CHF 250,000 with Credit Suisse — CHF 100,000 is covered by esisuisse, the remaining CHF 150,000 ranks as an unsecured claim. By transferring CHF 100,000 to PostFinance and CHF 50,000 to Migros Bank, he gains full coverage across all three institutions.

Related terms

Frequently asked questions

Is deposit insurance per account or per customer?+

Per customer per bank — multiple accounts at the same bank share one CHF 100,000 ceiling.

Are joint accounts covered separately?+

Each named holder typically gets a separate ceiling, so a joint account effectively doubles coverage.

Does deposit insurance cover investment products?+

No — only cash deposits. Securities held in your name remain yours regardless of bank failure.