If the bank or savings bank goes bankrupt, up to what amount can I recover my savings?

Have you ever wondered what happens if the bank to which you have entrusted your savings declare bankruptcy? It is necessary to know that there is a Deposit Insurance Fund (FSD), which is a financial backing in case the entity is declared in a state of dissolution and liquidation. Can you get all your deposited money back? Is free? We tell you here.

The Superintendency of Banking, Insurance and AFP (SBS) updated to S/125,714 the maximum coverage amount of the Fund Deposit Insurance (FSD) corresponding to the quarter from March to May 2023. The balance of the previous period (between December 2022 and February 2023) was S/125,603.

This means that savings accounts, term deposits and CTS accounts (including interest earned) that people have in banks, finance companies, municipal savings and credit banks and rural savings and credit banks are fully protected by more of S/100,000.

What entities are covered by the Deposit Insurance Fund?

In total there are 42 entities (16 banks, 12 municipal savings banks, 6 rural savings banks and 8 finance companies) that have the Active Deposit Insurance Fund. These are:

• Banks: BCP, BBVA, Scotiabank, Interbank, Falabella, Ripley, Mibanco, BanBif, Pichincha, GNB, Comercio, Alfin, Citibank, Santander, ICBC and Bank of China.
• financial: Crediscotia, Compartamos, Confianza, Oh!, Efectiva, Credinka, Proempresa and Qapaq.
• municipal boxes: Arequipa, Piura, Huancayo, Cusco, Sullana, Trujillo, Ica, Tacna, Maynas, Lima, Del Santa and Paita.
• rural savings banks: Cencosud Scotia, Raiz, Los Andes, Prymera, Del Centro and Incasur.

What entity is not covered by the Deposit Insurance Fund?

It is important to specify that this measure does not cover savings and credit cooperatives (COOPAC). However, these institutions have their own ‘insurance’ called Cooperative Deposit Insurance Fund (FSDC)whose maximum amount will be S/10,000, but it will only come into force in mid-2024.

For this reason, the savers of many cooperatives that were intervened by the SBS in recent months (such as AELUCOOP or CREDICOOP AREQUIPA) did not have this benefit.

Will a new entity entering Peru be covered? In the words of Jorge Carrillo Acosta, a professor and financial expert at Pacífico Business School, this entity will not be covered by the Deposit Insurance Fund until it has completed 24 months of contributions. This is the current case of Credit and Investment Bankwhich began operating in the country in mid-2022.

Do depositors pay for this insurance?

According to the financial expert, said support allows the saver to recover their money up to the maximum amount indicated before the possibility of bankruptcy of any of the insured financial entities.

It should be noted that this insurance is free and automatic for depositors, that is, it does not require prior registration. In addition, it applies to each entity independently, that is, a person could have S/125,000 in a bank and S/125,000 in a box, and would be covered by the FSD in both institutions.