Most depositors can receive their money already on Friday

Following the bankruptcy of the Körmend és Vidéke Savings Cooperative Bank the National Deposit Insurance Fund (NDIF) will indemnify 10,072 depositors. The payment of indemnifications equalling maximum HUF 1 million will be started on Friday by the Hungarian Post. Delivery of the related notices will also start on Friday to the residential addresses of customers above this limit. The commencement of payments has been made possible by the fast processing of the data stock of the savings bank. The total amount to be paid as indemnification exceeds HUF 22 billion. By the fourth working day from the start of the indemnification process 91.5 percent of the amount to be paid as indemnification was transferred to the NDIF’s partner organisations, participating in the indemnification process.

As many as 85% of the insured clients of the Körmend és Vidéke Savings Cooperative Bank are private individuals, and the average size of deposits kept in the savings bank was HUF 2.2 million, which exceeded the national average.

„On the whole four working days since the closure of the bank last Thursday, we have been working hard with our partners, OTP Bank, the Hungarian Postal Services and the Savings Bank (Takarékbank) in order to be able to indemnify our customers well before the legally set deadline of 20 working days. Our goal is to ensure that the first group of depositors will get their savings kept in the Körmend és Vidéke Saving Cooperative Bank already this week” managing director of NDIF András Fekete-Győr said.

The depositors of the Körmend és Vidéke Savings Cooperative Bank are indemnified in three ways:

  • up to HUF 1 million of indemnification: up to HUF 100,000 depositors will receive indemnification cash in hand from the postal delivery agent from Friday on, while those with deposits worth HUF 100,000 to HUF 1 million must go to the post office in person after they receive the relevant notice in the post.
  • Indemnification between HUF 1 and 5 million: depositors will receive the secret PIN code required for the use of the NDIF Deposit Insurance Card from Friday on, and will receive the card itself in a few days’ time. The Post will start delivering the letters with the financial settlements of the deposit accounts this week. The card can be used to withdraw money from the cash points and branch offices of OTP Bank, as well as in the post offices.
  • Depositors to receive more than HUF 5 million in indemnification will receive the settlements of their accounts this week, and can then receive their money in the appointed cooperative bank office from Monday on.

Key figures of indemnification by NDIF

The total insured deposit stock of the Savings Cooperative Bank (interest+principal) equals HUF 26.8 billion. From this amount the indemnification obligation of NDIF (for interests+principal) up to the HUF equivalent of EUR 100,000 (HUF 30,346,000) totals HUF 22.2 billion (including blocked deposits and items to be investigated).

Number of insured depositors eligible for indemnification: 10,072


  • Private individuals: 8,563
  • Businesses, social organisations (Ltds, limited partnerships, associations, self-employed people, churches, etc.): 1,475
  • Communities with shared property: 34

The oldest depositor to be indemnified was born in 1902, while the youngest is three months old.

The deposit that has been kept in the Savings Cooperative Bank for the longest period of time is from 1964.

The average size of deposits held by private individuals and legal entities is HUF 2.6 million and HUF 2.2 million, respectively.

Deposits under HUF 500 are not indemnified by NDIF. There are 709 such deposits (with a total value of HUF 54,000).

Indemnification of the depositors of the Savings Cooperative Bank affects depositors living in 12 different countries, in a total value of HUF 16 million.

As of 29 January 2014, the indemnification items transferred from NDIF to the paying agents were the following broken down by payment methods (including both private individuals and legal entities):


(number of)


(HUF billion)

up to HUF 1 million (through the Postal Services)



between HUF 1 million and 5 million (with the NDIF deposit insurance card)



over HUF 5 million (through a branch office of a savings association)






Interest tax

In compliance with the legal regulations in force, NDIF will withhold the interest tax from the interest payable to private individuals, and transfer it to the Tax Authority. The interest tax deducted from the 6,676 private individuals eligible for NDIF indemnification totals HUF 28 million, while the deducted healthcare contribution equals HUF 10.5 million.

Main features of deposits not to be indemnified by NDIF

The number of depositors whose deposits exceed the indemnification limit of HUF 30,346,000 is 44 (with deposits totalling HUF 881 million).

Deposits not insured by NDIF, and excluded from deposit insurance pursuant to Section 213 (1) of Hpt are local governments: 5 (totalling HUF 29.6 million).

State guarantee

Number of deposits that are not insured by NDIF and that were placed in prior to 1 July 1993 (when the NDIF insurance took effect), and which are still guaranteed by the state valid before 1993: 153 (totalling HUF 22.2 million).

Information on indemnification by NDIF is available from NDIF’s customer service centre by calling the 06-40-918-918 blue number for local tariffs. The number is operational 24 hours a day during the entire indemnification process.

# # #

To the editor


Bank deposits placed in credit institutions in the territory of the EU are insured by the national deposit insurance institution of the country of incorporation. Since 1993, all credit institutions (banks, savings cooperatives, credit unions, home savings fund) holding an operating licence in Hungary have been mandated to join NDIF and pay accession and annual fees. The key responsibility of NDIF, which supports the stability of the Hungarian banking system, is to indemnify depositors from its accumulated funds in the case of frozen deposits. See the current rules of deposit insurance on the homepage of NDIF: http://www.oba.hu/en/deposit-insurance/compass-downloadable -file.

NDIF indemnification

In case of the closure (commonly known as bankruptcy) of a credit institution the eligible depositors are indemnified by NDIF within 20 working days, aggregately by private individuals and credit institutions for up to EUR 100,000. The indemnity, which is always paid in HUF, pertains both to the principal and interest amounts of the frozen deposits. Brief information on the process of indemnification is available on the homepage of NDIF.


Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises, which regulates the operation of NDIF.

Paying agent bank

NDIF has concluded master agreements with several credit institutions with official seats and extensive branch networks in Hungary to act as paying agents. This means that in case of mass payments the paying agent contributes/paying agents contribute to the process of indemnification through their payment function. Clients can withdraw the amounts reserved for their use in the paying agent bank in cash, place the amounts as deposits or other savings products in the same bank, or may transfer these amounts to a bank account they have opened. Clients must definitely visit a branch office of the paying agent.

NDIF consumer protection logo

The banking products insured by NDIF are easy to recognise due to the deposit insurance consumer protection logo the use of which has been mandatory since 1 March 2012. The use of the logo is regularly checked by NDIF during its credit institution audits, and it is also monitored by the Hungarian Financial Supervisory Authority: http://www.oba.hu/hu/tagintezeteknek/fogyasztovedelmi-emblema.

NDIF member institutions

As of 31 December 2013, NDIF had 154 member institutions, including 4 home savings banks, 4 credit unions, 31 banks and 115 savings associations.