Bank Failure: The French Are Poorly Informed About Deposit Protection

Only 25% of French people know the compensation limit for their bank deposits, and fewer than one in ten know how many days it takes for the compensation to be paid out. This is according to the latest survey by the Deposit Guarantee and Resolution Fund (FGDR). This lack of awareness is concerning at a time when banking stability can no longer be taken for granted.

100,000 euros guaranteed, but few know it
In the event of a bank failure, individual deposits are covered up to 100,000 euros per institution. This is one of the pillars of financial security in Europe. However, according to the FGDR’s 10th annual survey, published in July 2025, only one in four people (25%) is aware of this coverage limit. The figure has remained stable for several years, despite communication efforts by regulators.
 

The FGDR covers checking accounts, term accounts, savings accounts (excluding Livret A, LDDS, and LEP accounts, which are guaranteed by the government), as well as savings plans such as PEL, CEL, PEA, PER, and PEE… All of these products are protected up to a limit of €100,000 per customer and per financial institution. This means that holding two accounts at the same bank does not double the coverage.
 

Even more concerning: only 8% of French people can name the legal deadline for reimbursement, which is set at a maximum of seven business days after a bank fails. Yet this is a crucial point: in the event of a crisis, this rapid compensation is intended to prevent a bank run and ensure quick access to the funds needed for daily life.
 

The FGDR, established in 1999, is specifically tasked with maintaining confidence in the banking system by quickly compensating depositors. It automatically mobilizes the necessary funds and contacts the affected customers without any action required on their part. Reimbursement is generally made by bank transfer or check, depending on the known account information.

Fragile confidence and persistent gaps
While 66% of respondents know that their checking accounts are covered by the guarantee, fewer are aware that other savings products are also covered: 60% for PEL and CEL accounts, and just over 50% for PEA and PER accounts. Most importantly, only 31% know that small and medium-sized businesses (SMEs) can also receive compensation, even though the guarantee extends well beyond individual consumers.
 

This lack of knowledge can fuel latent mistrust, particularly among young people and vulnerable groups. It also encourages precautionary behaviors that are sometimes unnecessary, such as spreading deposits excessively across multiple banks or making massive cash withdrawals during times of uncertainty.
 

The FGDR therefore emphasizes the need to strengthen financial education on these topics. Deposit insurance is a powerful protective tool, but bank customers need to be aware of it. At a time when systemic risks are resurfacing (market volatility, high interest rates, geopolitical tensions), confidence in financial institutions also depends on transparency and information.
 

This shortcoming could also pose a problem in the event of a cyberattack or sudden failure: knowing that one’s funds are protected reduces the risk of irrational reactions, as was seen during the collapse of Silicon Valley Bank in 2023 in the United States. In Europe, progress on implementing the European Deposit Insurance Scheme (EDIS) is slow, and the scheme remains largely unknown to the general public.