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How Portugal's Deposit Guarantee Fund Protects Your Savings

Researched and written with AI tools from official sources. How we make our guides

The 100,000 euro limit, the payout timeline, and the temporary cover for house sale money.

The Portugal Brief 6 min read

How Portugal's Deposit Guarantee Fund Protects Your Savings

Last verified: September 2026.

Who this is for

  • You keep money in a bank in Portugal, whether you live here or not.
  • You hold more than €100,000, or will soon, for example after selling a home.
  • You want to know what happens to your money if a bank fails.

Not for you if: you still need to open an account. Read Opening a Bank Account in Portugal first.

If a bank in Portugal fails, the Deposit Guarantee Fund (Fundo de Garantia de Depósitos, or FGD) repays your deposits up to €100,000. The limit is per person, per bank. You do not sign up or pay for it, and you do not need to make a claim. The law says the fund must repay you within seven working days. Money from selling your home is covered in full for one year, even above €100,000. Shares, funds, and other investments are not covered.

What the fund is

The FGD is Portugal's public deposit insurance scheme. It works alongside the Banco de Portugal, which runs its day-to-day services. The banks pay into the fund, not you.

Every EU country must have a scheme like this, covering at least €100,000 per depositor. The protection does not depend on your nationality or where you live.

Since 1 January 2020, the FGD also covers the Crédito Agrícola banks. They used to have their own separate fund.

The €100,000 limit

If you hold deposits at one bank, the fund covers up to €100,000 in total across all your accounts there. Three accounts at the same bank still share one €100,000 limit.

The fund adds up:

  • all your deposit accounts at that bank, of any type
  • interest earned but not yet paid on the day the bank fails
  • foreign currency balances, converted to euros at that day's rate

Repayment is always in euros.

Spreading money across banks

The limit applies separately at each bank. A person with €250,000 could keep it fully protected by using three separate banks.

Check that two brands are really separate banks. Brands that belong to the same licensed bank count as one. The Banco de Portugal publishes the list of authorised banks, and your bank's deposit information sheet names the legal entity.

Joint accounts

If you share an account, each holder is presumed to own an equal share, unless there is an agreement saying otherwise. Each share is covered up to €100,000 in that person's name.

So a joint account held by two people is covered up to €200,000. But each person's share is added to any other money they hold alone at the same bank. The €100,000 limit applies to their total.

If the account holder is not the real owner of the money, the cover goes to the real owner, if they can be identified. A client account held by a lawyer is one example. Repayment in these cases can take up to 90 days.

Cover above €100,000 for one year

Some deposits are covered in full, with no upper limit, for one year from the day the money reaches your account. They are:

  • Money from a property sale, where it comes from the sale of a private home.
  • Deposits for social purposes that a specific law defines.
  • Insurance payouts, and compensation for harm from a crime or for a wrongful conviction.

This matters if you sell your home and hold the money before buying the next one. See Buying Property in Portugal as a Foreigner for the buying process.

To use this cover, keep proof of where the money came from and when it arrived, such as:

  • the deed of sale (escritura) or sale document
  • the bank statement showing the credit
  • the insurance or court decision, if relevant

These deposits may take longer to repay than normal deposits. The fund can ask for more time to check them.

What is covered and what is not

Covered:

  • current accounts
  • savings accounts, including notice accounts
  • term deposits
  • home savings, emigrant savings, and retirement savings accounts
  • certificates of deposit issued by the bank

Not covered:

  • shares, bonds, investment funds, and other securities, even if you bought them through your bank
  • insurance savings products, such as capitalisation insurance
  • deposits of other banks, investment firms, insurers, pension funds, and most public bodies
  • deposits linked to a money laundering conviction
  • deposits whose holder was never properly identified by the bank
  • deposits of people who owned 2% or more of the bank, or sat on its board, in the two years before it failed. They keep cover if they show they did not cause its problems.

Portuguese state savings certificates. Certificados de Aforro and Certificados do Tesouro are not bank deposits. They are loans to the Portuguese state, managed by the public debt agency (IGCP). They are backed by the state, not by the FGD.

Which banks the FGD covers

The FGD covers:

  • banks based in Portugal, including their branches in other EU countries
  • branches in Portugal of banks based outside the EU

If your bank is a branch of a bank based in another EU country, your deposits are covered by that country's scheme. The FGD pays you on that scheme's behalf and handles your questions. The limit is still at least €100,000.

If you hold money in a Portuguese bank's branch outside the EU, it is not covered.

Your bank must give you a deposit information sheet before you open an account. It names the scheme that protects you, the limit, and how repayment works. For accounts opened from abroad, see Opening a Portuguese Bank Account as a Non-Resident.

How fast you would be repaid

Repayment is automatic.

  1. The bank fails to repay. Deposits become unavailable when the Banco de Portugal confirms the bank cannot pay, or when it withdraws the bank's licence.
  2. The fund repays you. The law sets a deadline of seven working days from that date. You do not need to apply.
  3. You receive the money in euros. The fund tells depositors how it will pay.

The Banco de Portugal's customer website still describes a staged payment: up to €10,000 within seven working days and the rest within 15. The law in force sets seven working days for the full covered amount.

Some payments can take longer, for example:

  • when it is unclear if you are entitled to be repaid
  • temporary high balances, such as house sale money
  • accounts with no activity for two years
  • deposits under legal proceedings or international sanctions

If you miss the payout, you can still claim from the fund later, within the legal time limits.

What happens to money above the limit

If you have more than €100,000 at a failed bank, and no temporary cover applies, the fund does not repay the excess. You become a creditor of the bank for that amount.

The law puts private individuals and small businesses ahead of most other creditors for the uncovered part. But you may get only part of it back, and it can take years.

Coming changes

The EU updated its deposit guarantee rules in April 2026. The changes will reach Portugal when national law is amended. Until then, the rules in this guide apply. Check your bank's deposit information sheet for the current terms.

A quick checklist

  • Add up your deposits at each bank. The €100,000 limit is per bank, across all your accounts.
  • Use separate banks for large balances, and check they are not the same licensed bank.
  • Remember that a joint account gives each holder their own €100,000 of cover.
  • Keep proof if you are holding house sale money above €100,000. The full cover lasts one year.
  • Do not assume investments are covered. Only deposits are.
  • Read your bank's deposit information sheet to see which scheme protects you.

For planning your savings more widely, see Retirement Planning in Portugal.

Sources

This guide is written from official sources and, where relevant, organisations' own websites.

Last verified September 2026. Rules and fees change; check the official source before acting.

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