UK savers may not be covered by unlimited German guarantee

07 October 2008

UK savers would be “unwise” to start thinking about opening German accounts

It appears that UK savers wishing to qualm their anxieties by taking advantage of the unlimited guarantee on deposits offered by the German Government may end up disappointed.

A Deutsche Bank spokesman yesterday said that there was currently uncertainty about the exact terms of the guaranteed by the German Chancellor, Angela Merkel.

“We have been flooded with calls from savers in this country asking whether they are covered and at this stage we simply don’t know,” the spokesman said.

“The position is equally unclear for savers from other countries who either have, or want to open a German savings account,” he added.

However, even if foreign depositors are offered cover by the guarantee, when the situation is clarified, UK savers would still have some large barriers to cross before they can become the owner of a German bank account.

Firstly, foreign depositors would have to make a trip to Germany to open the account in person at a branch of the German bank. As part of this trip, the depositor would need to take their passport to prove they are who they say they are. Additionally, they may be asked for proof to show where their money came from in accordance with money-laundering laws.

“If the money came from the sale of a car it would be wise to bring the sale receipt with you," said the Deutsche Bank spokesman.

“In the same way if the money came from another bank account it would be sensible to bring a bank statement relating to the account.

“Given the uncertainty over who is covered by the guarantee it would appear unwise for UK savers to take any steps towards opening a German bank account at this stage,” he added.