Deposit guarantee scheme for business accounts
Thomas Vles
6 minute read
The deposit guarantee scheme is not only important for individuals but also plays a significant role for entrepreneurs and businesses. As an entrepreneur, you want to be sure that the money in your business account is safe, even if your bank unexpectedly goes bankrupt. The guarantee scheme ensures that funds up to €100,000 per bank are protected, allowing you to bank with confidence. This provides peace of mind and certainty, especially when your working capital or reserves are temporarily held in one bank.
What is the deposit guarantee scheme?
The deposit guarantee scheme (DGS) is a legal arrangement that protects savers and businesses against the loss of their bank deposits. If a bank in the Netherlands goes bankrupt, the Dutch Central Bank (DNB) ensures that account holders get their money back up to a maximum amount of €100,000. This also applies to business accounts, so companies can safely deposit their money in a bank without a bankruptcy having immediate disastrous consequences.
The DGS applies throughout the Netherlands and the European Union and is designed to ensure confidence in the financial system. It is therefore not only a safety net for individuals but also for freelancers, SMEs, and larger organisations that manage their daily financial administration via a bank account.
How much is protected?
The core of the deposit guarantee scheme is that up to €100,000 per bank is reimbursed per depositor. This maximum applies to current accounts, savings accounts and term deposits held with the bank. For entrepreneurs, the exact protection depends on the legal form of the business. This is important, as the way the law views your business determines how much of your balance is actually covered by the guarantee scheme.
Sole Proprietorship
The money in a business account of a sole proprietorship is added to the private assets of the entrepreneur. Together, there is one protection of €100,000 per bank. This could have consequences if, as a freelancer, you have both business and private high balances with the same bank.Private Limited Company (BV)
A BV is a legal entity and is legally distinct from the owner. This means that the BV itself is protected up to €100,000, separate from the private assets of the entrepreneur. For directors and majority shareholders (DGA), this distinction is important, as both you as an individual and your BV fall separately under the DGS.General partnership, limited partnership or partnership
As of April 1, 2025, the arrangement changes: these legal forms will receive separate protection of €100,000 per partnership per bank. Previously, each partner had the right to protection separately. Depending on the situation, this could mean that the coverage may be higher or lower. For entrepreneurs in partnerships, it is therefore wise to check in good time what this means for their specific situation.
Practical examples
A concrete example clarifies how this works in practice and helps entrepreneurs understand how the protection operates in their situation:
Self-employed person with multiple accounts
A self-employed person has a business account with €90,000 and a personal account with €20,000 at the same bank. This is added together. Of the €110,000, €100,000 is guaranteed, while the remaining €10,000 falls outside the coverage.Limited company and personal assets
If a limited company has €90,000 in the business account and the entrepreneur personally has €20,000 at the same bank? This is treated separately: the limited company receives €90,000 and the entrepreneur personally receives €20,000. In this scenario, the full amount is therefore covered.Partnership with large balance
A partnership with €200,000 in the business account might have had full coverage before April 2025 (depending on the number of partners). However, after the change in law, only €100,000 is covered for the partnership as a whole. For the remaining amount, it is advisable to consider spreading across multiple banks.
Which business accounts fall under the system?
Almost all business payment and savings accounts are covered by the DGS protection. This also applies to business term deposits where your money is tied up for a certain period. Entrepreneurs can therefore rely on the fact that daily payment transactions and savings deposits are protected.
However, there are some exceptions:
Government institutions
Financial enterprises (such as banks themselves or insurers)
Furthermore, investment products (such as stocks or bonds), derivatives, insurance, and cryptocurrencies are not covered by the guarantee scheme. This distinction is important: an investment can decrease in value and always carries risk, while the DGS only applies to bank deposits.
Why is this important for entrepreneurs?
For entrepreneurs, from freelancers to SMEs, the certainty that their business assets are protected is crucial. It helps to mitigate risks and ensures that a bank failure does not directly lead to the loss of working capital. This safety net enables entrepreneurs to conduct business with confidence and plan investments.
If your business has more than €100,000 in a single bank account, it is wise to spread it across multiple banks, each holding its own licence. This way, you can ensure that your total assets remain within the coverage. Some companies also choose to distribute liquidity across accounts within the group, depending on the legal form.
GoDutch and the deposit guarantee scheme
GoDutch business accounts also fall under the Dutch deposit guarantee scheme. This means that the balance on a GoDutch account is protected up to €100,000 per business per bank. This provides entrepreneurs with the same security as traditional banks, but with the advantages of a modern, digital solution for business banking.
Whether you are a starting freelancer or running a growing business: with GoDutch you benefit from innovative features for business payment transactions, without compromising on security. This way, you know that your working capital is always safe, while you also enjoy the flexibility of digital banking.
